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New Delhi : Ravi Shankar Prasad, Union Electronics & IT, Communications, Law and Justice Minister, in his address to media at a presser marking the conclusion of application window under the Production Linked Incentive (PLI) Scheme (PLI), on August 1, 2020, said that PLI scheme has been huge success in terms of the applications received from Global as well as Domestic Mobile Phone manufacturing companies and electronic components manufacturers.
Prasad said Industry has reposed its faith in India’s stellar progress as a world class manufacturing destination and this resonates strongly with Prime Minister’s clarion call of AtmaNirbhar Bharat – a selfreliant India. He said, “ We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening electronics manufacturing ecosystem in the country.”
Production Linked Incentive Scheme (PLI) for Largescale Electronics Manufacturing was notified on April 1, 2020. PLI Scheme extends an incentive of 4% to 6% on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year (FY2019-20). The scheme was open for filing applications till July 31, 2020. Incentives are applicable under the scheme from August 1, 2020.
A total of 22 companies have filed their application under the PLI Scheme, according to a PIB release. The international mobile phone manufacturing companies that have applied under Mobile Phone (Invoice Value Rs 15,000 and above) Segment are Samsung, Foxcon Hon Hai, Rising Star, Wistron, and Pegatron. Out of these, 3 companies namely Foxcon Hon Hai, Wistron, and Pegatron are contract manufacturers for Apple iPhones. Apple (37%) and Samsung (22%) together account for nearly 60% of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country.
Under Mobile Phone (Domestic Companies) Segment, Indian companies including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services, and Optiemus Electronics have applied under the scheme. These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production. Ten companies have filed applications under the Specified Electronic Components Segment which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync.
The scheme will generate approximately 3 lakh direct employment opportunities in next 5 years along with creation of additional indirect employment of nearly 3 times the direct employment. Domestic Value Addition is expected to grow from the current 15-20% to 35-40% in case of Mobile Phones and 45-50% for electronic component