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19 companies filed PLI scheme for IT Hardware

19 companies filed  PLI scheme for IT Hardware

A total of 19 companies have filed their application under the Production Linked Incentive Scheme (PLI) for IT Hardware which was notified on 3 March 2021. The scheme was open for filing applications till 30 April 2021, a government release said. Incentives are applicable under the scheme from 1 April 2021, it further said.

The electronics hardware manufacturing companies that have applied under category IT Hardware Companies are Dell, ICT (Wistron), Flextronics, Rising Stars Hi-Tech (Foxconn) and Lava. 14 companies have filed applications under the category Domestic 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. These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in IT Hardware production.

PLI for IT Hardware was notified on 3 March 2021. The PLI Scheme extends an incentive of 4% to 2%/ 1% 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).  Over the next 4 years, the Scheme is expected to lead to total production of about INR 1,60,000 crore, the release said. Out of the total production, IT Hardware companies have proposed a production of over INR 1,35,000 crore, and Domestic Companies have proposed a production of over INR 25,000 crore.

The scheme is expected to promote exports significantly, the release said. Out of the total production of INR 1,60,000 crore in the next 4 years, more than 37% will be contributed by exports of the order of INR 60,000 crore. The scheme will bring additional investment in electronics manufacturing to the tune of INR 2,350 crore.

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The scheme will generate approximately 37,500 direct employment opportunities in next 4 years along with creation of additional indirect employment of nearly 3 times the direct employment.

Domestic Value Addition is expected to grow from the current 5-12% to 16-35%.

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