PLI Scheme will lead to total production value of Rs. 11.5 Lakh Cr: Ravi Shankar

Over the next 5 years, the PLI (Production Linked Incentive) Scheme is expected to lead to a total production value of about Rs. 11,50,000 crore says Ravi Shankar Prasad.

Out of the total production, companies under Mobile Phone (Invoice Value Rs. 15,000 and above) segment have proposed a production of over Rs. 9,00,000 crore, The companies under Mobile Phone (Domestic Companies) segment have proposed a production of about Rs. 2,00,000 crore and those under Specified Electronic Components segment have proposed a production of over Rs. 45,000 crore.

PLI Scheme has received a good response from global as well as domestic mobile phone manufacturing companies and electronic components manufacturers says Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law and Justice, Government of India. 22 companies have filed applications under the Production Linked Incentive Scheme launched by the Ministry of Electronics & IT (MeitY).

The international mobile phone manufacturing companies that have applied under Mobile Phone (Invoice Value Rs. 15,000 and above) Segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron. Out of these, 3 companies namely Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones.

Under Mobile Phone (Domestic Companies) Segment, Indian companies including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services and Optiemus Electronics have applied under the scheme. These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production.

10 companies have filed applications under the Specified Electronic Components Segment which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync.

Industry has reposed its faith in India’s stellar progress as a world class manufacturing destination and this resonates strongly with Prime Minister’s clarion call of AtmaNirbhar Bharat – a self reliant India.

Minister said that “We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening electronics manufacturing ecosystem in the country.”

Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing was notified on 1st April, 2020. PLI Scheme extends an incentive of 4% to 6% on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year (FY2019-20). The scheme was open for filing applications till 31.07.2020. Incentives are applicable under the scheme from 01.08.2020.

Out of the total production of Rs. 11,50,000 crore in the next 5 years, more than 60% will be contributed by exports to the tune of Rs. 7,00,000 crore.The scheme will bring additional investment in electronics manufacturing to the tune of Rs. 11,000 crore. The scheme will generate approximately 3 lakh direct employment opportunities in next 5 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 15-20% to 35-40% in case of mobile phones and 45-50% for electronic components.

Share and Enjoy !

0Shares
0 0 0

Be the first to comment

Leave a Reply