The government has approved 14 eligible applicants under the Production Linked Incentive Scheme (PLI) for IT Hardware, which was notified on 3 March.
Four companies have been selected under the category IT Hardware Companies which include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn).
Under the category of Domestic Companies, 10 firms namely Lava International Limited, Dixon Technologies (India) Limited, Infopower Technologies (joint venture of Sahasra and MiTAC), Bhagwati (Micromax) Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife have been approved, the Ministry of Electronics and IT said on Thursday (1 July).
The target segments under the PLI Scheme for IT Hardware 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.
The PLI scheme extends an incentive of 4 per cent to 2 per cent or 1 per cent on net incremental sales (over base year of FY20) of goods under target segments that are manufactured in India to eligible companies, for a period of four years (FY22 to FY25).
According to the ministry, over the next four years, the approved companies under the PLI Scheme for IT Hardware are expected to lead to a total production of more than Rs 1.61 lakh crore.
Out of the total production, the approved companies under IT Hardware companies category have proposed a production of Rs 84,746 crore.
Meanwhile, the approved companies under Domestic Companies category have proposed a production of Rs 76,007 crore.
The scheme will bring additional investment in IT Hardware manufacturing to the tune of Rs 2,517 crore, the ministry said.
The scheme will generate an additional direct employment opportunities of more than 36,000 in next four years along with creation of additional indirect employment of nearly three times the direct employment. Domestic Value Addition is expected to grow from the current 10-15 per cent to 25-30 per cent, the ministry said.
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