Home >Economy >Dell, Foxconn, 17 other firms apply under PLI scheme for IT Hardware

As many as 19 companies have filed application under the Production Linked Incentive (PLI) scheme for the IT Hardware, the union Telecom ministry said on Tuesday.

As per the ministry, companies like, Dell, Lava, ICT (Wistron) and Rising Stars Hi-Tech (Foxconn) have applied under the PLI scheme.

The other 14 companies that 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.

Production Linked Incentive Scheme (PLI) for IT Hardware was notified on March 3, this year. The PLI Scheme extends an incentive of 4 per cent to 2-1 per cent 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), as per the Centre's guidelines.

The target IT hardware segments under the PLI 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.

In his address marking the conclusion of application window under the scheme, Union Minister for Electronics & IT, Communications 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. 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".

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, Prasad added.

Over the next four years, the scheme is expected to lead to total production of about 1,60,000 crore, according to the Centre. Out of the total production, IT Hardware companies have proposed a production of over 1,35,000 crore, and domestic companies have proposed a production of over 25,000 crore.

Additionally, out of the total production of 1,60,000 crore in the next four years, more than 37 per cent will be contributed by exports of the order of 60,000 crore. The scheme will bring additional investment in electronics manufacturing to the tune of 2,350 crore.

The Centre added that the scheme will generate approximately 37,500 direct employment opportunities along with creation of additional indirect employment of nearly three times the direct employment in next four years. On the other hand, Domestic Value Addition is expected to grow from the current 5-12 per cent to 16-35 per cent, as per the Centre.

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 cheme will give fillip to vocal for local while aiming for global scale," Prasad added.

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