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Mobile Manufacturers spend ₹1300 crore under the PLI Scheme

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The ministry of commerce and industries announced that mobile manufacturers selected under a production-linked incentive scheme invested Rs 1,300 crore and manufactured products worth approximately Rs 35,000 crore in the 2020 December quarter. On April 1, 2020, the Production Linked Incentive (PLI) Scheme for large-scale electronics manufacturing was notified, in which incremental sales will be rewarded at a rate of 4 to 6% for a period of five years following the base year.The government had shortlisted 16 proposals for the programme, including those from Samsung, Foxconn, Hon Hai, Rising Star, Wistron, and Pegatron, with a total incentive outlay of Rs 36,440 crore.

Contract mobile manufacturers for Apple iPhones include three companies: Foxconn Hon Hai, Wistron, and Pegatron. Apple and Samsung respectively account for 37% and 22% of total cell phone sales revenue.

Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs, and Optiemus Electronics were among the Indian companies chosen as part of the scheme.

“According to the quarterly summary reports for the quarter ended December 2020, the applicant companies manufactured products worth INR 35,000 crore and invested INR 1,300 crore under the scheme during the first five months of service, facing difficult economic conditions. Around 22,000 additional jobs are expected to be created during this time span “In a statement, the ministry said.
Following the success of the first round of the PLI Scheme, the second round was launched on March 11, with the objective of establishing a vibrant and robust electronic component manufacturing ecosystem.

“Exports are estimated to account for more than 60% of output. Additionally, the scheme is projected to attract Rs 11,000 crore in new investment. By 2025, value addition could increase from 20% to 25% to 35-40% “According to the declaration.

Additionally, on March 3, the government announced the PLI Scheme for IT Hardware, with an application deadline of April 30.

Eligible participants will receive a one-to-four percent bonus on net aggregate sales of products produced in India over the base year under this scheme.

“The scheme is expected to support both major global and domestic manufacturers of information technology hardware goods, namely laptops, tablets, all-in-one PCs, and servers,” the statement said.

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