The Ministry of Electronics and IT has recently approved applicants under the PLI IT Hardware scheme. The scheme is promising incentives worth over Rs 7,350 crore
Indian companies including the likes of VVDN, Dixon Technologies, Infopower Technologies and Micromax (Bhagwati Products) have committed over Rs 200 crore in investments around the recently approved production linked incentive (PLI) scheme for promoting local manufacturing of IT products.
“We are delighted to have been approved for the PLI scheme for IT hardware. It showcases India's progress to becoming preferred manufacturing destination and resonates strongly with PM Modi's call of Atmanirbhar Bharat – a self-reliant India. The PLI scheme goes hand in hand with VVDN’s vision and has further strengthen our resolve to do more of Design and Make in India products,” noted VVDN Technologies Co-founder and President Engineering Vivek Bansal.
While working in the datacenter space, VVDN has its IPs for OvS and SSL for network compute. With these investments made in the R&D and manufacturing infrastructure along with the PLI approval, we are quite excited and confident to be able to meet the production demands for the IT hardware products,” added Bansal.
The Ministry of Electronics and IT (MeitY) has approved 14 (Indian and International) companies under the recently approved PLI IT Hardware scheme. The scheme is promising incentives worth over Rs 7,350 crore over a four year period starting April 2021.
Extension of facilities
Dixon Technologies, one of the Indian companies to have been approved under the scheme, has already started work on building a new facility in Noida, Uttar Pradesh. Once functional, this facility will be Dixon’s 13th manufacturing facility in India.
Similarly, the likes of VVDN, Infopower and Micromax, are also working on expanding their already functional facilities. Smile Electronics is also gearing up to commence operations at ts new facility located in Andhra Pradesh.
A report by GadgetsNow notes that Dixon will be investing approx Rs 25 crore in this scheme over a period of four years. Infopower Technologies is also said to be investing over Rs 20 crore in the same scheme. However, it seems VVDN will be investing the largest amount, among Indian companies, in this scheme (Rs 100 crore).
“VVDN has applied for Telecom and Networking Equipment PLI. 5G and Networking and Wi-FI have been areas of great focus for us due to this market potential. With investments in the R&D as well as manufacturing front, VVDN has been catering to the global and domestic demands. We are totally excited about this PLI as further investments made will help VVDN to boost Design and Make in India of the telecom and networking products”, Jeetender Singh, CFO , VVDN Technologies, had said earlier.
Bhagwati Products is also said to be investing over Rs 50 crore in the scheme. Smile Electronics, on the other hand, has plans to invest Rs 10 to 15 crore in the scheme initially.