The government has extended the mobile phone PLI scheme by one year till 2025-26.
The government on Monday extended the production-linked incentive scheme for large-scale electronics manufacturing by one year till 2025-26. The base year for the scheme 2019-20 remains the same but companies will have the option to choose their five-year period from the base year or the year 2020-21 for computing incentives under the scheme.
“Now we have extended the tenure of the scheme from 2020-21 to 2025-26. Earlier, it used to end in 2024-25. Those who have invested in 2020-21 will also be counted as we gave They have the option to choose any five years to meet their production target under the scheme,” Finance Minister Nirmala Sitharaman said while announcing new measures to help revive the Covid-hit economy.
The Ministry of Electronics and IT has approved 16 proposals for investment of Rs 11,000 crore by domestic and international companies under the Production Linked Incentive (PLI) scheme to manufacture mobile phones worth Rs 10.5 lakh crore over the next five years.
The companies include Samsung and Rising Star as well as contract makers Foxconn Hon Hai, Wistron and Pegatron of iPhone maker Apple.
The domestic companies whose proposals have been approved include Lava, Bhagwati (Micromax), Padgett Electronics (Dixon Technologies), UTL Neolinx and Optimus.
Eligible companies will get 4-6 percent incentive on incremental sales of companies.
Pankaj Mohindroo, president of the India Cellular and Electronics Association, a body of mobile phone manufacturers, said the expansion will not only support the government’s efforts to establish India as an integral part of the global value chain in the electronics sector, but also be a champion of developing Indian Will support companies to tap the global as well as Indian market.
“This is a big win for India. This decision will enable the nation to become a global electronics manufacturing destination and will also send the right message to global investors in the time of pandemic. It shows that the governance of India is very kind, realistic and always standing back. business and industry,” Mohindroo said.
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