Mobile producers shortlisted underneath a manufacturing linked incentive scheme invested Rs 1,300 crore and produced items price round Rs 35,000 crore in the 2020 December quarter, the ministry of commerce and industries mentioned on Wednesday. The Production Linked Incentive (PLI) Scheme for giant scale electronics manufacturing was notified on April 1, 2020, underneath which there might be an incentive of 4 % to six % on incremental gross sales for a interval of 5 years subsequent to the bottom 12 months. The authorities had chosen 16 proposals underneath the scheme, together with from Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron with an incentive outlay of Rs 36,440 crore.
Three firms — Foxconn Hon Hai, Wistron and Pegatron — are contract producers for Apple iPhones. Apple and Samsung account for 37 % and 22 % of world gross sales income of cell phones respectively. Indian firms chosen underneath the scheme had been Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics. “As per the quarterly review reports for the quarter ending December 2020, in the first five months of scheme operation and despite challenging times, the applicant companies have produced goods worth ~INR 35,000 crore and invested ~INR 1,300 crore under the scheme. Additional employment generation during this period stands at around 22,000 jobs,” the ministry mentioned in a press release.
After the success of the primary spherical of PLI Scheme, the second spherical of PLI Scheme was launched on March 11, which focuses on constructing a vibrant and sturdy digital element manufacturing ecosystem. “More than 60 per cent of production is expected to be exported. The scheme is also expected to bring in additional investment of Rs 11,000 crore. Value addition is expected to go up from 20-25 per cent presently to 35-40 per cent by 2025,” the assertion mentioned. The authorities additionally notified PLI Scheme for IT Hardware on March 3 and the final date for software underneath the scheme is April 30.
Under this scheme, eligible gamers will get an incentive of 1 to 4 per cent on internet incremental gross sales over base 12 months of products manufactured in India. “The scheme is likely to benefit major global as well as domestic manufacturers of IT hardware products, namely, laptops, tablets, all-in-one PCs, and servers,” the assertion mentioned.
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