An Empowered Committee chaired by Parameswaran Iyer, CEO of NITI Aayog (National Institution for Transforming India), has approved 32 beneficiaries under the Production Linked Incentive (PLI) scheme for ‘Large-Scale Electronics Manufacturing.’
- It is the first disbursement under any PLI scheme, and 10 of the 32 beneficiaries (5 global and 5 domestic) were approved for mobile manufacturing.
- The proposal for disbursement of incentive was made by the Ministry of Electronics and Information Technology (MeitY).
i.Padget Electronics Private Limited in Noida, Uttar Pradesh, is the first beneficiary approved by the Empowered Committee.
- It is designated to receive a Rs. 53.28 crore incentive under mobile manufacturing based on its incremental investment and sales figures for FY 2021-22.
- Padget Electronics Pvt. Ltd. is a wholly owned subsidiary of Dixon Technologies Pvt. Ltd.
ii.By 2025-26, electronics manufacturing is estimated to reach USD 300 billion.
Production Linked Incentive (PLI) Scheme
Union Finance Minister announced an outlay of Rs. 1.97 lakh crores for the PLI Schemes for 13 key sectors in the Union Budget 2021–22.
- Objective: To make domestic manufacturing globally competitive and to create domestic Champions in manufacturing.
It intends to provide companies with incentives on increased sales of goods manufactured in India.
PLI Scheme for Large Scale Electronics Manufacturing
i.The PLI scheme for Large-Scale Electronic Manufacturing, with a total outlay of Rs. 38,645 crores, was approved on April 1, 2020.
- Objective: To increase domestic manufacturing and draw significant investment into the production of specific electronic components and mobile phones.
ii.The scheme will provide eligible companies with a 4% to 6% incentive on incremental sales (over the base year).
- It extends to items manufactured in India and covered by target segments for a period of 5 years following the defined base year.
iii.The scheme certified 16 companies (5 global companies under the category of mobile phones (Invoice Value Rs. 15,000 and above), 5 domestic companies, and 6 companies under Specified Electronic Components).
iv.First Round of PLI Scheme: Target segment – Mobile Phone & Electronic Component Manufacturing
v. Second Round of the PLI Scheme:
- Target segment – Specified Electronic Components
- Incentives: 5% to 3%
- Base year: 2019-20
- Period: 4 years
The tenure of the PLI Scheme has been extended by one year i.e. from 2024-25 to 2025-26.
Recent Related News:
In July 2021, the Union Cabinet approved the PLI Scheme for Specialty Steel in India which will be implemented over FY 2024-25 to FY 2029-30 with a budgetary outlay of Rs 6,322 crore. It aims to promote manufacturing of such steel grades within India, and to boost the domestic production of Specialty Steel and attract significant investment for production for the same.
About the Ministry of Electronics and Information Technology (MeitY):
Union Minister – Ashwini Vaishnaw (Rajya Sabha – Odisha)
Minister of State (MoS) – Rajeev Chandrasekhar (Rajya Sabha – Karnataka)