ICEA Asks Government to Shift PLI Scheme Timeline Due to Inability to Meet Targets

0
404

Several handset manufacturing companies had urged the government to shift the timeline of the production-linked incentive (PLI) scheme

India Cellular & Electronic Association (ICEA), in a letter addressing the government, has requested that FY 2020-21 be considered as a year for preparation, keeping in mind the disruptions in production and business caused by the ongoing pandemic.

“Incentives should start from the financial year FY 2021-22 and end in the year FY 2025-26 instead of FY 2024-25, with no other change in the Scheme, keeping the yearly expenditure envelope unchanged,” the body said in a letter.

COVID-led disruptions to production

Citing reasons like the lockdown in the country, shortage of chipsets, lack of time to increase capacity, lack of technical specialists for the inability of companies to meet the given targets, the ICEA said, “Any company that has achieved both investment and revenue targets during the current financial year due to their ability to exploit existing facilities, production lines, or having been established in India for a long time, should be given the incentives as per the current scheme.”

Notably, Samsung has been the only company to achieve the investment and output targets set by the government pertaining to the PLI scheme.

Earlier, several handset manufacturing companies had urged the government to shift the timeline of the production-linked incentive (PLI) scheme and roll over the targets of this year and combine them with those of the next financial year.

LEAVE A REPLY

Please enter your comment!
Please enter your name here