- Apple’s contract manufacturer will receive financial incentives worth ₹601.93 crores Wistron under the production-linked incentive (PLI) scheme for electronics manufacturing.
- The scheme extends an incentive of 4% to 6% on incremental sales of goods manufactured in India for five years to eligible companies.
The government has announced a new set of financial incentives worth ₹765 crores under the production-linked incentive (PLI) scheme for large-scale electronics manufacturing with the majority share of incentives directed towards Apple’s contract manufacturer Wistron.
Data provided by India Cellular and Electronics Association showed that the government would release financial incentives worth ₹601.93 crores to Wistron, followed by ₹149.63 crores for Indian contract manufacturer Padget (Dixon Technologies). The news was first reported by Economic Times.
AT&S, Shogini and Alcon Electronics will receive incentives worth ₹7.58 crores, ₹3 crores and ₹2.40 crores, respectively.
Commenting on the booming electronics manufacturing space, ICEA chairman Pankaj Mohindroo highlighted the country’s perspective of seeing a new era of great coordination between industry and policymakers or implementers.
The PLI scheme for large-scale electronics manufacturing offers an incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including assembly, testing, marking and packaging (ATMP) units. The scheme extends an incentive of 4% to 6% on incremental sales (over a base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year as defined.
The original outlay for the scheme initially amounted to ₹40,951 crores, which was then reduced to ₹38,601 crores, over five years. One of the reasons for the reduced outlay was that Apple’s contract manufacturer Pegatron would reportedly be claiming incentives, next year onwards, for only four years of the scheme tenure.