The Empowered Committee for Production-Linked Incentive (PLI) schemes, chaired by the NITI Aayog CEO Param Iyer, approved the first disbursement for mobile manufacturing under the scheme for large-scale electronics manufacturing.
This also happens to be the first-ever disbursement of incentives by the government to any PLI applicant.
The EC approved its first disbursement of Rs 53.28 crores to M/s Padget Electronics Private Limited as recommended by Project Management Agency i.e. M/s IFCI ltd. Padget Electronics Pvt. Ltd. is a 100 percent subsidiary of ‘Dixon Technologies (India) Pvt Ltd’.
Under the PLI Scheme for Large-Scale Electronics Manufacturing, 32 beneficiaries were approved, of whom 10 (five global and five domestic companies) were approved for mobile manufacturing. Approved applicants include big names in the industry like Samsung, Foxconn, Wistron, Dixon and more.
According to a press release by the Press Information Bureau, the PLI Scheme for Large Scale Electronics Manufacturing was notified on April 1, 2020. This scheme extends an incentive of four to six percent on net incremental sales of manufactured goods covered under the ‘Target Segment’ including mobile phones and specified electronic components.
The Ministry of Electronics and Information Technology is engaging with other eligible applicants of the scheme for filing their disbursement claims for the year 2021-22. PLI Scheme for large-scale electronics has emerged as the most successful scheme. As of June 2022, the scheme has led to a total production of more than Rs 1,67,770 crore including exports of Rs 65,240 crore. The scheme has also generated employment for 28,636 people and, over the last three years, exports of smartphones have grown by 139 percent.
The statement also said that it is expected that electronics manufacturing will rise to $300 billion by 2025-26. Schemes like PLI will make India a competitive destination for electronics manufacturing and create more domestic champions apart from giving a boost to Atmanirbhar Bharat.
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