Micromax, Dixon Technologies, Lava Apply For IT Hardware PLI Scheme

Lava, Foxconn, Dell, Wistron, and more companies have applied for Production Linked Incentive (PLI) scheme for making IT hardware in the country. The new scheme was introduced in March this year and is quite similar to the scheme that was announced for mobile phones.

Besides, there are 15 more companies which have applied for the same. Micromax, Dixon Technologies, Neolync Electronics, OptiemusInfracom, Netweb Technologies, Syrma Technologies, Smile Electronics, RDP Workstations, and Panache Digilife are planning to invest in the IT hardware sector.

"The PLI Scheme extends an incentive of 4 percent to 2 percent/ 1 percent on net incremental sales (over the base year of FY 2019-20) of goods under target segments that are manufactured in India to eligible companies, for a period of four years (FY 2021-22 to FY 2024-25)," Ministry of Electronics and IT (MeitY) said.

Investment Required Under PLI Scheme

Notably, the PLI scheme of the hardware includes tablets, laptops, personal computers, and servers and as per guidelines all international companies have to invest Rs. 500 crores in the first year, Rs. 2,500 crores, Rs. 5,000 crores, and Rs. 10,000 crores in the second, third and fourth year.

On the other hand, the Government announced that domestic companies have to invest Rs. 20 crores, Rs. 100 crores, Rs. 200 crores, and Rs. 300 crores in four years. In addition, the Government said that global companies expected to get Rs. 1,35,000 crores and domestic companies Rs. 25,000 crores from the production in the four years.

"The scheme is expected to promote exports significantly. Out of the total production of Rs. 1,60,000 crores in the next 4 years, which is more than 37 percent, and will be contributed by exports of the order of Rs. 60,000 crores. The scheme will bring additional investment in electronics manufacturing to the tune of Rs. 2,350 crores," the ministry added.

Why PLI Scheme Is Important For Manufacturing Sectors?

The PLI scheme is expected to promote manufacturing in the country along with creating employment opportunities in the sector during the same period. Apart from that, we believe that this will reduce our dependence on imports. Furthermore, this scheme is expected to increase investment in the sector.