Under PLI Scheme, Govt Receives 32 Applications For IT Hardware Manufacturing – News18

The Production Linked Incentive (PLI) scheme is an initiative taken by the government to encourage foreign investors to find a workforce in India. This will lead to employment generation and also encourage local or domestic production to create micro-jobs. Currently, the government has received 32 applications under the PLI scheme from companies like Dell, Lenovo, Acer, Asus, Foxconn, and Netware Production for IT hardware that includes laptops, servers, and tablets. Whether Apple has not yet submitted its application or not, is not known. Today, August 31, is the submission deadline. The Union Minister Ashwini Vaishnaw stated in a recent interview, ‘’We are likely to see expected incremental production of Rs 3,35,000 crore. The expected incremental investment will be Rs 2430 crore. The expected direct employment is going to be 75,000.”

The new scheme will provide additional incentives of up to 3% to those companies that procure domestically-produced components like money chips, adaptors, solid-state drives, chassis, power supply components, and printed circuit board assemblies. These incentives might add up to 8–9%.

With the PLI scheme, the government aims to triple the current manufacturing industry from 105 billion dollars to over 300 billion dollars. The growth is expected to reach a trillion dollars and emulate China’s electronics manufacturing sector. It is also focusing on eliminating the need for a subsidiary in the electronics sector.

As per reports, the government has implemented the PLI scheme for 14 sectors, including white goods, pharmaceuticals, textiles, automobiles and auto components, high-efficiency solar PV modules, speciality steel, and advanced chemistry cells.

The government had approved a renewed PLI scheme worth Rs 17000 crore with a six-year tenure in May 2023, aimed at boosting domestic manufacturing for tablets, laptops, and ultra-small form factor devices.

As per reports, among the 38 applications, approximately 8 companies have applied under the newly introduced hybrid category, and around 25 applications are from local companies. The scheme is expected to receive an investment of over Rs 4000 crore. A few of the local applicants include VVDN Technologies, Optiemus Infracom, Dixon Technologies (India), and Sahasra Electronic Solution.