The EC approved the first disbursement of Rs53.28 crore under the PLI Scheme for Large Scale Electronics Manufacturing to Dixon Technologies subsidiary Padget Electronics.
India’s Production Linked Incentive (PLI) Schemes are a cornerstone of the Government’s push for accomplishing the vision of Atmanirbhar Bharat. The objective is to make domestic manufacturing globally competitive and to create domestic champions in manufacturing. The strategy behind scheme is to offer financial incentive 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% to 6% on 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 Rs38,645 crore. Sixteen companies—five global companies under category Mobile Phone (Invoice Value Rs15,000 and above), five domestic companies, and six companies under Specified Electronic Components—were approved under the scheme.
After the success of the first round of PLI Scheme, the second round of the PLI Scheme with the target segment of Specified Electronic Components was opened until March 31, 2021, incentivizing 5% to 3% on incremental sales to eligible companies, for a period of four years. About 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—from 2024-25 to 2025-26. The notification in this regard was issued on September 23, 2021. Out of the total 16 companies, 15 companies opted for extension.
The Empowered Committee (EC) approved the first disbursement of Rs53.28 crore under PLI Scheme for Large Scale Electronics Manufacturing to M/s Padget Electronics Private Ltd as recommended by Project Management Agency i.e. M/s IFCI ltd. Padget Electronics is a wholly owned subsidiary of Dixon Technologies (India) Pvt Ltd.
The Ministry of Electronics and Information Technology (MeitY) is pursuing with other eligible applicants of the scheme for filing their disbursement claims for the year 2021-22. PLI Scheme for large scale electronics has emerged as the most successful scheme. As of June 2022, the Scheme has led to total production of more than Rs1,67,770 crore including exports of Rs65,240 crore. The PLI Scheme has also generated employment of 28,636. Over the past three years, exports of smartphones have grown by 139%.
It is expected that the 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.