File photo of Ravi Shankar Prasad
A total of 19 companies have filed applications under the production linked incentive (PLI) scheme for IT hardware, including Dell, Rising Stars Hi-Tech (Foxconn) and Lava.
The other electronics hardware manufacturing companies that have applied under category IT hardware companies are ICT (Wistron) and Flextronics, said an official statement.
Further, 14 companies have filed applications under the category Domestic Companies which include Dixon, Infopower (JV of Sahasra and MiTAC), Bhagwati (Micromax), Syrma, Orbic, Neolync, Optiemus, Netweb, VVDN, Smile Electronics, Panache Digilife, HLBS, RDP Workstations and Coconics.
These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in IT Hardware production, said the IT Ministry statement.
The PLI scheme for IT hardware was notified on March 3, 2021. The scheme extends an incentive of 4 per cent to 2 per cent/1 per cent on net incremental sales (over base year of FY 2019-20) of goods under target segments that are manufactured in India to eligible companies, for a period of four years (FY 2021-22 to FY 2024-25).
Ravi Shankar Prasad, Union Minister for Electronics & IT said that the PLI scheme for IT Hardware has been huge success in terms of the applications received from global as well as domestic companies engaged in manufacturing electronics hardware products.
The minister 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".
The target IT hardware segments under the proposed scheme include laptops, tablets, all-in-one personal computers (PCs) and servers. The scheme proposes production linked incentives to boost domestic manufacturing and attract large investments in the value chain of these IT Hardware products.
Over the next four years, the scheme is expected to lead to total production of about Rs 1.60 lakh crore. Out of the total production, IT hardware companies have proposed a production of over Rs 1.35 lakh crore, and domestic companies have proposed a production of over Rs 25,000 crore.
Out of the total production of Rs 1.60 lakh crore in the next four years, more than 37 per cent will be contributed by exports of the order of Rs 60,000 crore, the ministry said in its statement.
The scheme will bring additional investment in electronics manufacturing to the tune of Rs 2,350 crore and generate around 37,500 direct employment opportunities in next four years along with creation of additional indirect employment of nearly three times the direct employment.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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