Over the next 4 years, the approved companies under the PLI Scheme for IT Hardware are expected to lead to a total production of more than INR 1.61 lakh crore
The Ministry of Electronics and Information and Technology (MeitY) has announced that it has approved 14 companies under the production-linked incentive (PLI) scheme for IT hardware.
Four companies have been selected under the category IT hardware companies which include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn), while under the category of domestic companies, 10 companies namely Lava International Limited, Dixon Technologies (India) Limited, Infopower Technologies (JV of Sahasra and MiTAC), Bhagwati (Micromax) Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife have been approved.
Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law and Justice said that the PLI scheme has been a huge success in terms of the applications received from global as well as domestic manufacturing companies.
MeitY said in a statement that over the next 4 years, the approved companies under the PLI Scheme for IT Hardware are expected to lead to a total production of more than INR 1.61 lakh crore.
Out of the total production, the approved companies under IT Hardware companies category have proposed a production of INR 84,746 crore.
The approved companies under Domestic Companies category have proposed a production of INR 76,007 crore. The scheme will bring additional investment in IT Hardware manufacturing to the tune of INR 2,517 crore, it added.
The scheme will generate additional direct employment opportunities of more than 36,000 in the next 4 years along with the creation of additional indirect employment of nearly 3 times the direct employment. Domestic value addition is expected to grow from the current 10-15 per cent to 25-30 per cent.
The PLI Scheme for IT Hardware was notified on 3rd March 2021 and extends an incentive of 4 per cent to 2 percent/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 (FY2021-22 to FY 2024-25).
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.