Government Approves 16 Applicants for PLI Scheme

With an aim to boost local manufacturing in India, the government has approved 16 applicants under the Production Linked Incentive (PLI) scheme. The Ministry of Electronics and Information and Technology (MeitY) has stated that 16 top global and domestic mobile phone and electronic component makers, including Samsung, Foxconn and Bhagwati Products, the maker of Micromax phones, are eligible for the PLI scheme. The government also informed that other eligible international phone makers are Rising Star, Wistron and Pegatron. Except for Samsung, all the other foreign companies are contract manufacturers for Apple Inc. Samsung and Apple together account for nearly 60 percent of global revenue for mobile phones. The domestic companies include Lava, UTL Neolyncs, Optiemus Electronics, and Padget Electronics. Additionally, AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync have been approved under the Specified Electronic Components Segment.

The PLI scheme is aimed at increasing Samsung and Apple’s manufacturing base in the country. Under the scheme, the government will give 4-6 percent of incentive to eligible electronic companies on incremental sales of manufactured goods, mobile phones and electronic components such as printed circuit boards and sensors, among others, for five years. The base year is 2019-20 and the incentives are applicable from 1 August. The 16 companies approved under the scheme are expected to

We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country

lead to the total production of over 10.5 lakh crore in the next five years.

For mobile phones priced at Rs. 15,000 and above, the consolidated global manufacturing revenue of the applicant has to be more than Rs. 10,000 crore in the base year. In the case of domestic handset makers, the consolidated global manufacturing revenue of the applicant has to be more than Rs. 100 crore in the base year.

Minister of electronics and information technology Ravi Shankar Prasad said the PLI scheme has been a huge success in terms of the applications received from global as well as domestic mobile phone manufacturing companies and electronic parts makers. “We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country," stated Ravi Shankar.

The scheme will bring additional investment to the tune of Rs. 11,000 crore and create 300,000 direct jobs, an official statement said. Moreover, the scheme is expected to result in production worth Rs. 10.5 trillion, out of which more than 60 percent will be contributed by exports.