The government has extended the Production Based Incentive Scheme (PLI) period by one year to 2025-26 on large-scale manufacturing of electronics products with an emphasis on mobile phones. The base year for this scheme will remain 2019-20, but companies will have the option to choose the base year 2020-21 years for calculating the period of incentive of five years.
Announcing new measures for the revival of the economy affected by the Kovid crisis, Finance Minister Nirmala Sitharaman said, “Now we have extended the duration of the scheme to 2025-26. Companies that have also invested in 2020-21 will also be taken under the scheme because we have selected five years to meet the production target under the scheme.
The Ministry of Electronics and Information Technology has approved 16 proposals for investment of Rs 11,000 crore by domestic and international companies under the Production Based Incentive (PLI) scheme for manufacturing mobile phones worth Rs 10.5 lakh crore over the next five years.
These companies include Samsung and Rising Star, apart from Foxconn Hon Hai, Wistron, and Pegatron, which manufactures on contract for iPhone maker Apple. The domestic companies whose proposals have been approved include Lava, Bhagwati (Micromax), Padgett Electronics (Dixon Technologies), UTL Neolinks, and Optimus. These companies will get a 4-6 percent incentive on their increased sales.
Pankaj Mahendru, chairman, India Cellular and Electronics Association, an association of mobile phone makers, said the expansion would not only support the government’s efforts to establish India as an integral part of the global value chain in the electronics sector but also help develop It will help Indian companies to increase their presence in the domestic as well as global markets.
He said that this decision will prove to be important in making the nation a global electronics manufacturing place and will also send the right message to global investors in the pandemic.
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