Production Linked Incentive Scheme for IT Hardware (PLIIT)
Updated: Jan 14, 2022
The IT Hardware manufacturing sector faces the lack of a level playing field vis-à-vis competing nations. As per industry estimates (Source: ICEA and ELCINA), electronics manufacturing sector suffers from a disability of around 8.5% to 11% on account of lack of adequate infrastructure, domestic supply chain and logistics; high cost of finance; inadequate availability of quality power; limited design capabilities and focus on R&D by the industry; and inadequacies in skill development. There is need for a mechanism to compensate for the manufacturing disabilities vis-à-vis other major manufacturing economies.
The vision of NPE 2019 is to position India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally.
The target segments under the PLI Scheme for IT Hardware include Laptops, Tablets, All-in-One Personal Computers (PCs) and Servers. The scheme proposes production linked incentives to boost domestic manufacturing and attract large investments in the value chain of these IT Hardware products.
Production Linked Incentive Scheme (PLI) for IT Hardware- Extension of timelines for filing application till 30.04.2021.
The Scheme shall extend an incentive of 4% to 2% / 1% on net incremental sales (over base year) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of four years (FY2021-22 to FY 2024-25). The Target Segment under PLI shall include (i) Laptops (ii) Tablets (iii) All-in-One PCs and (iv) Servers.
Support under the Scheme shall be provided to companies based on the eligibility criteria laid down, for manufacturing of goods (covered under the target segment) in India.
Approval to eligible applicants under the PLI Scheme.
Four companies have been selected under the category IT Hardware Companies which include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn).
Under the category of Domestic Companies, 10 companies namely Lava International Limited, Dixon Technologies (India) Limited, Infopower Technologies (JV of Sahasra and MiTAC), Bhagwati (Micromax) Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife have been approved.