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Centre approves 14 eligible applicants under Production Linked Incentive scheme for IT hardware

The Ministry of Electronics and IT on Thursday approved 14 eligible applicants under the Production Linked Incentive Scheme for IT hardware. The scheme proposes production linked incentives to boost domestic manufacturing and attract large investments in the value chain of these IT Hardware products.

of Electronics and IT on Thursday app
of Electronics and IT on Thursday app

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Published : Jul 1, 2021, 10:40 PM IST

New Delhi: The Ministry of Electronics and IT on Thursday approved 14 eligible applicants under the Production Linked Incentive Scheme (PLI) for IT hardware. The target segments under the PLI Scheme for IT Hardware include laptops, tablets, all-in-one personal computers and servers. PLI Scheme for IT Hardware notified on 3rd March 2021, extends an incentive of 4 per cent to 2 percent/1 per cent on net incremental sales (over the base year of FY 2019-20) of goods under target segments that are manufactured in India to eligible companies, for a period of four years (FY2021-22 to FY 2024-25). The target segments under the PLI Scheme for IT Hardware include Laptops, Tablets, All-in-One Personal Computers (PCs) and Servers, read a release by the Ministry of Electronics and IT.

The scheme proposes production linked incentives to boost domestic manufacturing and attract large investments in the value chain of these IT Hardware products. While giving approval to eligible applicants under the PLI Scheme, Ravi Shankar Prasad, Union Minister for Electronics and IT, Communications, Law and Justice said that the PLI scheme has been a huge success in terms of the applications received from Global as well as the domestic manufacturing companies. The minister further said that "we are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening electronics manufacturing ecosystem in the country".

Four companies have been selected under the category IT Hardware Companies which include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn). Under the category of Domestic Companies, 10 companies namely Lava International Limited, Dixon Technologies (India) Limited, Info power Technologies (JV of Sahasra and MiTAC), Bhagwati (Micromax) Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife have been approved, read the release. "Over the next 4 years, the approved companies under the PLI Scheme for IT Hardware are expected to lead to a total production of more than INR 1.61 lakh crore. Out of the total production, the approved companies under the IT Hardware companies category have proposed a production of INR 84,746 crore. The approved companies under the Domestic Companies category have proposed a production of INR 76,007 crore. The scheme will bring additional investment in IT Hardware manufacturing to the tune of INR 2,517 crore," it said.

Also read: Cabinet clears Rs 18,100 cr PLI scheme for ACC battery sector

The scheme will generate additional direct employment opportunities of more than 36,000 in the next 4 years along with the creation of additional indirect employment of nearly 3 times the direct employment. Domestic Value Addition is expected to grow from the current 10-15 per cent to 25-30 per cent. With the demand for electronics in India expected to grow manifold by 2025, the Union Minister expressed confidence that the PLI scheme and other initiatives to promote electronics manufacturing will help in making India a competitive destination for electronics manufacturing and give a boost to 'AatmaNirbhar Bharat'.

(ANI)

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