MeitY approves 14 applicants under PLI Scheme for IT hardware

The Ministry of Electronics and Information and Technology (MeitY) has approved 14 eligible applicants under the Production Linked Incentive Scheme (PLI) for IT Hardware.

PLI Scheme for IT Hardware notified on 3rd March 2021, extends an incentive of 4% to 2%/1% 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 (FY 2021-22 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.

While giving approval to eligible applicants under the PLI Scheme, Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law and Justice said, “The PLI scheme has been a huge success in terms of the applications received from global as well as domestic manufacturing companies. We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country.”

Four companies have been selected under the category IT hardware companies which include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn).

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.

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 Rs. 1.61 lakh crore. Out of the total production, the approved companies under IT hardware companies category have proposed a production of Rs. 84,746 crore. The approved companies under domestic companies category have proposed a production of Rs. 76,007 crore. The scheme will bring additional investment in IT hardware manufacturing to the tune of Rs. 2,517 crore.

The scheme will generate an additional direct employment opportunities of more than 36,000 in next 4 years along with creation of additional indirect employment of nearly 3 times the direct employment. Domestic Value Addition is expected to grow from the current 10-15% to 25-30%.

With the demand for electronics in India expected to grow manifold by 2025, Ravi Shankar Prasad expressed confidence that the PLI scheme and other initiatives to promote electronics manufacturing will help in making India a competitive destination for electronics manufacturing and give boost to Atmanirbhar Bharat.

Creation of domestic champion companies in electronics manufacturing under the Scheme will give fillip to ‘Vocal for Local’ while aiming for global scale, added Prasad.