Padget Electronics Private Limited, a subsidiary of Noida-based contract manufacturer Dixon Technologies Pvt Ltd, became the first company to receive disbursement under the production linked incentive or PLI scheme for large scale electronics manufacturing after it achieved production targets set by the government under the scheme.
An Empowered Committee Friday approved the first disbursement of Rs 53.28 crore to the company for the financial year 2021-22, the ministry of electronics and information technology said in a statement on Friday.
PLI scheme for large scale electronics manufacturing was notified on April 1, 2020. This scheme extends an incentive of 4% to 6% on net incremental sale of manufactured goods, including mobile phones and specified electronic components subject to conditions. Global firms opting for the scheme had to invest Rs 250 crore and achieve incremental sales of Rs 4,000 crore in the first year, while local firms could invest up to Rs 50 crore and target sales of Rs 500 crore.
The ministry is pursuing with other eligible applicants of the scheme for filing their disbursement claims for the year 2021-22. The ministry added that 16 companies were approved under the scheme which included five global companies under category mobile phone with invoice value of Rs 15,000 and above, five domestic companies and six companies under specified electronic components.
The second round of the PLI scheme with the target segment of specified electronic components was opened until March 2021, incentivizing 5% to 3% on incremental sales to eligible companies, for a period of four years.
The tenure of the PLI scheme was extended by one year to 2025-26, where 15 companies of the 16 approved companies opted for extension. The total outlay of incentives under the scheme is Rs 38,645 crore.
PLI scheme for large scale electronics has emerged as the most successful scheme. As of June 2022, the scheme has led to total production of more than Rs. 1,67,770 crore including exports of Rs 65,240 crore, generating 28,636 jobs. Over the last three years, exports of smartphones have grown by 139%. The ministry added that electronics manufacturing will rise to USD 300 billion by 2025-26.
The PLI scheme is the cornerstone of the government’s Atmanirbhar Bharat push as it aims to make domestic manufacturing globally competitive and to create domestic champions in manufacturing. The scheme offers financial incentive to boost electronics manufacturing and attract large scale investments.
The government announced an outlay of Rs 1.97 trillion for 14 sectors under the PLI scheme to create national manufacturing champions and to create 60 lakh new jobs. As of April, the government has received investments worth over Rs 2.34 trillion across all sectors under the scheme.