The government has received 40 applications for the PLI Scheme 2.0 for IT hardware for manufacturing laptops, PCs and servers, after the deadline for applying ended at 11.59 pm on Wednesday, August 30.
The Union Cabinet authorised a Rs 17,000-crore incentive in May to stimulate local manufacturing of IT hardware such as tablets and laptops, and the scheme is expected to create Rs 4.7 lakh crore in incremental production over a six-year period.
Sources told CNBC-TV18 that applicants will be shortlisted as per scheme guidelines within the approved outlay. The scheme is also expected to bring in incremental investments to the tune of Rs 5,000 crore, and create 75,000 jobs, sources said.
On Wednesday, Union Minister for Electronics and IT Ashwini Vaishnaw said the applicants have expressed interest in manufacturing and bringing in supply chains. Vaishnaw had noted that companies like HP, Dell, Lenovo, Thompson, Acer, and Asus will be manufacturing laptops under the scheme. Whereas, HP, VVDN, Lenovo will be manufacturing servers.
Apple not interested
Vaishnaw also said that Apple has not applied under the PLI framework. This move should see a significant reduction in the import of laptops and PCs, Vaishnaw said, adding that “import restrictions are not a worry anymore.”
Three very large manufacturing facilities are also expected to be set up, which will not only cater to India but will also look at exports. According to Vaishnaw, the potential of localisation can be up to 75 percent through this.
Which companies applied?
Prominent IT hardware corporations like Dell and HP are actively participating in the program, while other key players such as HPE, Lenovo, Acer, and ASUS are involved through EMS companies like Flextronics and Rising Star, which operate manufacturing facilities in India. This collaboration is further reinforced by domestic companies like Padget (Dixon), VVDN, Netweb, Syrma, Optiemus, Sahasra, Neolync, Panache, Sojo (Lava), and Kaynes Technologies.
Ten companies have chosen to initiate production under PLI 2.0 starting from July 1, 2023, followed by 25 companies from April 1, 2024, and five from April 1, 2025. The scheme has been oversubbcribed, an official government note stated.
First Published: Aug 31, 2023 1:47 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP replaces Poonam Mahajan with lawyer Ujjwal Nikam for Mumbai North Central Lok Sabha seat
Apr 27, 2024 7:53 PM
Meet Amritpal Singh, the separatist leader contesting Lok Sabha polls from Punjab's Khadoor Sahib
Apr 27, 2024 7:18 PM