Mobile PLI Scheme — Wait for disbursement of incentives continues

But industry insiders are hopeful of the road ahead. Pankaj Mohindroo, the Chairman of India Cellular and Electronics Association (ICEA), clarified that the Centre has expanded the scope of the scheme to six years, giving the manufacturers the flexibility to pick their base year. While Samsung has picked FY21 as the first year of the scheme, all others have opted for FY22 as the first.

He explained that except one, all foreign companies, approved under the scheme, have met their targets for FY22. Pegatron which began production this year, will be seeking incentives for only four years, beginning with FY23. For domestic companies, Pankaj Mohindroo explained that two out five applicants have met FY22 targets.

He observed that investment side targets were not a concern with global companies already having invested the required amount and domestic companies making necessary investments every year.

Echoing similar sentiments, Hari Om Rai, the Chairman and MD of Lava International, claimed a growth rate of 60 percent, noting that investments for eligibility under the PLI scheme had been made.

There were, however, twin concerns he had red flagged. He noted that the chip shortage did leave the company hamstrung, but expressed optimism that the semicon supply side issues were being resolved. He also raised concerns about demand. Numbers released by Cybermedia Research reveal that Q2FY22 saw smartphone sales dip by 12 percent. Recent data from International Data Corp, also suggests that 2022 may see 80 million shipments of 5G smartphones, as compared to the initial forecast of 85-90 million shipments in 2022.

However, Rai has expressed confidence that Lava will hit the necessary targets to claim benefits under the PLI scheme.