Centre approves 14 eligible applicants under PLI for IT hardware
Union Ministry of Electronics and IT (MeitY) has approved 14 applicants under Production Linked Incentive (PLI) Scheme for IT hardware products.
PLI Scheme for IT Hardware provides an incentive of 4% to 2% on net incremental sales over base years of Financial Year 2020.
What are those targeted segments?
- Target segments under the PLI scheme are laptops, tablets, personal computers (PCs) and Servers.
- This scheme proposes production-linked incentives in a bid to boost domestic manufacturing and to attract large investments in value chain of all these IT Hardware products.
Who were the applicants?
- Applicants were four companies selected globally including Dell, ICT (Wistron), Rising Stars Hi-Tech (Foxconn) and Flextronics.
- Under Domestic Companies category, 10 companies like Lava International Limited, Infopower Technologies (JV of Sahasra and MiTAC), Dixon Technologies (India) Limited, Bhagwati (Micromax) Neolync, Netweb, Optiemus, VVDN, Smile Electronics, and Panache Digilife were approved.
Significance of the move
Approved companies under the PLI scheme are likely to lead to a total production of more than ₹1.61 lakh crore in next 4 years. Out of the total production, companies approved under IT Hardware companies’ category have proposed for a production of ₹84,746 crore. Scheme will bring additional investment in IT Hardware manufacturing of about ₹2,517 crore.
What is PLI Scheme?
It is an outcome & output-based scheme in which incentives are paid only if manufacturers make goods. It provides for cash incentives for five to seven years. It covers all the sunrise and important sectors under it. Sectors covered under the scheme include networking products, automobile, advanced chemistry, food processing, and solar PV manufacturing.
Month: Current Affairs - July, 2021
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