Government Approves 16 Companies Under PLI Scheme

After launching the PLI scheme for handset makers, the government has now announced the list of 16 companies that will get the benefit. The Production Linked Incentive scheme (PLI) is now offering a six percent incentive on incremental sales of goods. Earlier, it used to offer only four percent.

The approved companies are expected to bring more investment in the sector. In fact, these companies are likely to generate more employment in the next five years.

"PLI scheme has been a huge success in terms of the applications received from Global as well as Domestic Mobile Phone manufacturing companies and electronic components manufacturers," said Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law, and Justice.

The international mobile phone manufacturers included are Wistron, Pegatron, Samsung, Foxconn Hon Hai, and Rising Star. However, Wistron, Pegatron, and Foxconn Hon Hai are already manufacturing for Apple iPhones. Notably, both Apple and Samsung are contributing 60 percent of global sales.

Apart from the sharing the name of international players, the government has announced that Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs, and Optiemus Electronics have also received approval from MeitY, while other companies like AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync approved under Specified Electronic Components segment.

"The approved companies under the PLI Scheme are expected to lead to the total production of more than Rs. 10,50,000 crore (Rs. 10.5 lakh crore). Out of the total production, the approved companies under Mobile Phone (Invoice Value Rs. 15,000 and above) segment have proposed production of over Rs. 9,00,000 crore," the government said.

Furthermore, the government said that domestic companies are expected to produce Rs. 125,000 crore, whereas Specified Electronic Components are likely to do a production of Rs. 15,000 crore. In addition, the Production Linked Incentive scheme is also expected to increase exports.