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Thursday, July 29, 2021

IT hardware PLI: Dell, Wistron, Foxconn among 14 cos cleared

Earlier in February, the Union Cabinet had approved the Rs 7,325-crore PLI scheme for laptops, tablets, all-in-one-personal computers, and servers, and it was notified on March 3.

By: ENS Economic Bureau | New Delhi |
Updated: July 2, 2021 5:11:54 am
As per the scheme, incentives ranging between 1 per cent and 4 per cent would be given to these 14 companies on net incremental sales over base year, which is 2019-20. The scheme will run till 2024-25.

The Ministry of Electronics and Information Technology (MeitY) on Thursday approved a total of 14 companies, including ten domestic ones, as eligible to participate in the production linked incentive (PLI) scheme for laptops, tablets, all-in-one-personal computers, and servers.

Global laptop and computer conglomerate Dell and other electronic giants like Wistron, Flextronics, and Foxconn have been approved as eligible, while domestic companies such as Lava International, Dixon Technologies, Bhagwati (the parent company of Micromax), Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife have been approved as eligible.

Earlier in February, the Union Cabinet had approved the Rs 7,325-crore PLI scheme for laptops, tablets, all-in-one-personal computers, and servers, and it was notified on March 3. As per the scheme, incentives ranging between 1 per cent and 4 per cent would be given to these 14 companies on net incremental sales over base year, which is 2019-20. The scheme will run till 2024-25.

Explained

Trifecta of schemes complete

the Centre has now completed the trifecta of electronics manufacturing schemes for mobile phones and its allied components, core and peripheral telecom equipment. India buys Rs 30,000 crore of laptops and Rs 3,000 crore of tablets per year.

The MeitY estimates that the total production for information technology hardware over the next four years under the scheme could be of up to Rs 1.61 lakh crore, of which the approved companies have proposed a production of Rs 84, 746 crore. “The approved companies under domestic companies category have proposed a production of Rs 76,007 crore. The scheme will bring additional investment in IT Hardware manufacturing to the tune of INR 2,517 crore,” the ministry said in a press release.

Like the other PLI schemes, the incentives for companies in the telecom and networking equipment manufacturing space would be on achievement of a minimum threshold of cumulative incremental investment and incremental sales of manufactured goods net of taxes. India currently buys laptops worth Rs 30,000 crore per year and tablets worth Rs 3,000 crore per year, of which about 80 per cent is imported.

With the approval of eligible companies for PLI scheme for laptops and desktops, the government has now completed the trifecta of electronics manufacturing schemes for mobile phones and its allied components, core and peripheral telecom equipment.

The PLI scheme for telecom components worth Rs 12,195-crore was also approved by the Union Cabinet on February 17, while in April last year the government had notified a PLI scheme for mobile phones which envisaged incentives worth Rs 41,000 crore over the next five years.

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