An empowered committee headed by NITI Aayog CEO approved 32 beneficiaries under the production-linked incentive (PLI) scheme for large-scale electronics manufacturing, including 10 for mobile.

The committee has cleared the first incentive of Rs 53.28 crore for Dixon Technologies subsidiary Padget Electronics under the PLI scheme. 

The committee headed by Parameswaran Iyer approved the first incentive for mobile manufacturing under the PLI scheme for large-scale electronics manufacturing. This is the first-ever disbursement under any PLI scheme.

PLI scheme on large-scale electronic manufacturing

• The PLI scheme on large-scale electronic manufacturing, which includes manufacturing of mobile phones and specified electronic components, was approved in March 2020, with a total outlay of Rs 40,995 crore.

• The scheme is expected to bring in additional production to the tune of Rs 10,69,432 crore and generate employment for seven lakh people.

• The scheme offers a production linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units. It would tremendously boost the electronics manufacturing landscape and establish India at the global level in the electronics sector. 

• It shall extend an incentive of 4-6 per cent on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year as defined. 

PLI schemes

An outlay of Rs 1.97 lakh crore has been announced in Union Budget 2021-22 for Production Linked Incentive (PLI) schemes for 13 key sectors for a period of five years starting from FY 2021-22.

These sectors are:

1) Mobile manufacturing and specified electronic components (Large scale electronics manufacturing)

2) Critical key starting materials/drug intermediaries & active pharmaceutical ingredients

3) Manufacturing of medical devices 

4) Automobiles and auto components

5) Pharmaceuticals

6) Specialty steel

7) Telecom and networking products

8) Electronic/technology products

9) White goods (ACs and LEDs)

10) Food products

11) Textile products: man-made fibre (MMF) segment and technical textiles

12) High efficiency solar PV modules

13) Advanced Chemistry Cell (ACC) battery.

• In September 2021, the Union government approved a PLI scheme for drones and drone components with an allocation of Rs 120 crore spread over three financial years.

• The objectives of PLI schemes are to make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies.

• It is designed to create a complete component ecosystem in India and make India an integral part of the global supply chains. 

• The schemes are expected to attract global investments, generate large scale employment opportunities and enhance exports substantially.

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