The PLI Scheme for Large Scale Electronics Manufacturing, which was introduced to boost the domestic production of electronic components, has seen its first disbursal approved by the Empowered Committee. The first company to get the incentive under the scheme is Padget Electronics Pvt Ltd, which is a subsidiary of Noida-based contract manufacturer Dixon Technologies Pvt Ltd.
Padget Electronics will get a disbursement of Rs 53.28 crore under PLI Scheme for Large Scale Electronics Manufacturing. “The Empowered Committee (EC)…approved first disbursement of Rs 53.28 crore under PLI Scheme for Large Scale Electronics Manufacturing to M/s Padget Electronics Private Limited as recommended by Project Management Agency i.e. M/s IFCI ltd. Padget Electronics Pvt. Ltd. is a 100 per cent subsidiary of ‘Dixon Technologies (India) Pvt Ltd,” the Ministry of Electronics and IT has said in a statement.
It added that the objective is to make domestic manufacturing globally competitive and to create domestic Champions in manufacturing. The strategy behind the scheme is to offer financial incentives to boost electronics manufacturing and attract large-scale investments.
The PLI Scheme for Large Scale Electronics Manufacturing was notified on April 1, 2020. This scheme extends an incentive of 4 per cent to 6 per cent on a net incremental sale of manufactured goods covered under the ‘Target Segment’ including mobile phones and specified electronic components.
The total outlay under the scheme is Rs 38,645 crore. A total of 16 companies (five global companies under the category ‘mobile phone’ (invoice value at Rs 15,000 and above), five domestic companies and six companies under specified electronics components were approved under the scheme.
“After the success of the first round of PLI scheme, second round of the PLI Scheme with the target segment of specified electronic components was opened until March 31,, 2021, incentivising 5 per cent to 3 per cent on incremental sales to eligible companies, for a period of four (4) years. 16 companies were approved by the Competent Authority under the Second Round of PLI Scheme.”
The tenure of the PLI Scheme has been extended by one year i.e. from 2024-25 to 2025-26. The notification in this regard was issued on September 23, 2021. Out of total 16 companies, 15 companies opted for the extension.
The Ministry of Electronics and Information Technology is pursuing with other eligible applicants of the scheme for filing their disbursement claims for the year 2021-22. The PLI Scheme for Large Scale Electronics has emerged as the most successful scheme. As of June 2022, the Scheme has led to the total production of more than Rs 1,67,770 crore, including exports of Rs 65,240 crore. The PLI scheme has also generated employment of 28,636. Over the past three years, exports of smartphones have grown by 139 per cent.
“It is expected that electronics manufacturing will rise to $300 billion by 2025-26. Schemes like PLI will make India a competitive destination for electronics manufacturing and create more domestic champions apart from giving boost to Atmanirbhar Bharat,” said the statement.
Read all the Latest Business News and Breaking News here