The Ministry of Electronics and Information and Technology (MeitY) has approved 14 eligible applicants under the Production Linked Incentive Scheme (PLI) for IT Hardware.
PLI Scheme for IT Hardware notified on 3 March 2021 extends an incentive of four percent to two percent/one percent on net incremental sales (over base year of FY20) of goods under target segments that are manufactured in India to eligible companies for a period of four years (FY22 to FY25).
The target segments under the PLI Scheme for IT Hardware 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.
Four companies have been selected under the category IT Hardware Companies include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn).
Under the category of domestic companies, 10 companies, namely Lava International, Dixon Technologies (India), Infopower Technologies (joint venture of Sahasra and MiTAC), Bhagwati (Micromax) Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife have been approved.
Over the next four years, the approved companies under the PLI Scheme for IT Hardware are expected to lead to a total production of more than Rs 1.61 lakh crore.
Out of the total production, the approved companies under IT Hardware companies category have proposed a production of Rs 84,746 crore.
The approved companies under domestic companies category have proposed a production of Rs 76,007 crore. The Scheme will bring additional investment in IT Hardware manufacturing to the tune of Rs 2,517 crore.
The Scheme will generate an additional direct employment opportunities of more than 36,000 in the next four years along with creation of additional indirect employment of nearly three times the direct employment.
Domestic Value Addition is expected to grow from the current 10-15 percent to 25-30 percent. The creation of domestic champion companies in electronics manufacturing under the Scheme will give fillip to vocal for local while aiming for global scale.
