Home / Technology / News /  Atmanirbhar Bharat: Govt clears 10 companies for mobile phone PLI scheme

The India government today approved ten mobile manufacturing companies for its Production Linked Incentive Scheme (PLI) scheme to boost large-scale electronics manufacturing in the country as a part of the its Atmanirbhar Bharat initiative.

Along with that, it has also given its nod for six other eligible applicants under the scheme. The PLI scheme, as notified on 1 April, extends an incentive of 4% to 6% on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year (FY2019-20).

During the approval, Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law and Justice said that PLI scheme has been huge success in terms of the applications received from global as well as domestic mobile phone manufacturing companies and electronic components manufacturers.

Prasad further said, “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 international mobile phone manufacturing companies that are approved under mobile phone segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron. Out of these, 3 companies namely Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. Apple (37%) and Samsung (22%) together account for nearly 60% of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country. The invoice value of phones manufactured by these companies is to be 15,000 and above, as already notified by the government.

Under domestic phone manufacturing segment, the government approved Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics. These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production.

Apart from this six companies are approved under the Specified Electronic Components Segment which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync, stated the Ministry of Electronics and IT.

Over the next 5 years, the approved companies under the PLI scheme are expected to lead to total production of more than 10,50,000 crore. Out of the total production, the approved companies under Mobile Phone (Invoice Value 15,000 and above) segment have proposed a production of over 9 lakh crore.

The approved companies under Mobile Phone (Domestic Companies) segment have proposed a production of about 1,25,000 crore and those under Specified Electronic Components segment have proposed a production of over 15,000 crore.

The companies approved under the scheme are expected to promote exports significantly. Out of the total production of 10,50,000 crore in the next 5 years, around 60% will be contributed by exports of the order of 6,50,000 crore.

They will bring additional investment in electronics manufacturing to the tune of 11,000 crore.

The companies approved under the scheme will generate more than 2 lakh direct employment opportunities in next 5 years along with creation of additional indirect employment of nearly 3 times the direct employment.

Domestic value addition -- the contribution from local entities in the production -- is expected to grow from the current 15-20 per cent to 35-40 per cent in case of mobile phones and 45-50 per cent for electronic components, the statement added.

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