Nineteen companies, including Dell, Wistron, show interest in PLI scheme for IT Hardware
06 May 2021
A total of 19 companies, including Dell, ICT (Wistron), Flextronics, Rising Stars Hi-Tech (Foxconn) and Lava, have filed their application under the Production Linked Incentive Scheme (PLI) for IT Hardware, which was notified on 3 March 2021.
Besides these, 14 companies, which include Dixon, Infopower (JV of Sahasra and MiTAC), Bhagwati (Micromax), Syrma, Orbic, Neolync, Optiemus, Netweb, VVDN, Smile Electronics, Panache Digilife, HLBS, RDP Workstations and Coconics, have filed applications under the category `Domestic Companies.’
These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in IT Hardware production.
Production Linked Incentive Scheme (PLI) for IT Hardware was notified on 3 March 2021. The scheme was open for filing applications till 30 April 2021. Incentives are applicable under the scheme from 1 April 2021.
The PLI Scheme offers an incentive of 4 per cent, 2 per cent and 1 per cent, respectively, on net incremental sales (over 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 (FY 2021-22 to FY 2024-25).
In his address marking the conclusion of application window under the scheme, union minister for electronics and IT, communications, law and justice Ravi Shankar Prasad, said that PLI scheme for IT Hardware has been huge success in terms of the applications received from global as well as domestic companies engaged in manufacturing electronics hardware products.
This, he said, is testimony to the fact that industry has reposed its faith in India’s stellar progress as a world class manufacturing destination and supports the prime minister’s clarion call of AtmaNirbhar Bharat.
“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,” the minister further said.
Under Prime Minister Narendra Modi’s visionary initiatives like the “Digital India” and “Make in India” programmes, India, he said, has witnessed an unprecedented growth in electronics manufacturing in the last five years. The National Policy on Electronics 2019 envisions positioning India as a global hub for Electronics System Design and Manufacturing (ESDM) by focusing on size and scale, promoting exports and enhancing domestic value addition by creating an enabling environment for the industry to compete globally.
After the success of the Production Linked Incentive Scheme in bringing investments in mobile phone (handsets and components) manufacturing, the union cabinet chaired by the prime minister approved the PLI Scheme for IT hardware products. The target IT hardware segments under the proposed scheme include Laptops, Tablets, All-in-One Personal Computers (PCs) and Servers. The scheme proposes production linked incentives to boost domestic manufacturing and attract large investments in the value chain of these IT Hardware products.
Over the next 4 years, the scheme is expected to lead to total production of about Rs1,60,000 crore. Out of the total production, IT Hardware companies have proposed production worth over Rs1,35,000 crore, and domestic companies have proposed production to the tune of Rs25,000 crore.
The scheme is expected to promote exports significantly. Out of the total production of Rs1,60,000 crore in the next 4 years, more than 37 per cent will be contributed by exports of the order of Rs60,000 crore.
The scheme will bring additional investment in electronics manufacturing to the tune of Rs2,350 crore, generate approximately 37,500 direct employment opportunities in next 4 years and additional indirect employment of nearly 3 times the direct employment.
Domestic value addition is expected to grow from the current 5-12 per cent to 16-35 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 boost to AtmaNirbhar Bharat. Creation of domestic champion companies in electronics manufacturing under the scheme will give a fillip to `Vocal for Local’ while aiming for global scale.