New Delhi: Approximately 30 out of the 40 applicants are anticipated to meet the requirements for the Rs 17,000-crore Production Linked Incentive (PLI) scheme for IT hardware, according to a government official.
Under this scheme, 40 companies, including Dell, HP, and Lenovo, have submitted applications, and pledged to produce personal computers, laptops, tablets, servers, and related equipment valued at Rs 4.65 lakh crore during the scheme’s duration.
“Around 30-32 company may qualify for the (IT hardware PLI) scheme. Some are looking ineligible for the scheme due to financial issues and organisation structure issues,” an officer informed.
Despite the budget allocation of Rs 17,000 crore for the scheme, applicants have projected incentives totalling Rs 22,890 crore. The official assured that the companies that will be selected, would receive incentives within the allocated fund for the scheme.
Several IT hardware companies, such as Dell and HP, are taking part in the initiative directly. Other significant players, including Acer, ASUS, HPE, Lenovo, and Thomson, are partaking through Electronic Manufacturing Service (EMS) companies with manufacturing facilities, like Flextronics and Rising Star, in India.
Foxconn, Apple’s supplier, has also submitted an application for incentives via one of its subsidiaries. Padget (Dixon), VVDN, Netweb, Syrma, Optiemus, Neolync, Sahasra, Panache, Sojo (Lava), and Kaynes Technologies are amongst the numerous domestic firms applying for the scheme.
The scheme is expected to provide 75,000 professionals with direct employment opportunities in electronic manufacturing and additionally attract an incremental investment of Rs 5,000 crore.
The list of companies that are eligible to reap the benefits of this scheme, is likely to be released by the end of September or early October, the official said.
Regarding the status of restrictions on IT hardware imports, the official clarified that the norms would be effective starting from November 1, and imports would be allowed only after authorisation. During the initial year, most companies will continue their import activities as usual, with a gradual reduction in the import quota starting after September 2024.
Companies have been asked by the government to submit all the crucial data collected over the last three years, along with the destination from their devices are storedThe official emphasised the intention to source devices exclusively from trusted suppliers.
Also Read More –
- MeITy offers one-year leeway to IT hardware companies on import relief
- 44 IT hardware manufacturers including leading laptop brands to manufacture products in India
