NEW DELHI: Atleast 22 companies have applied for the Ministry of Electronics and InformationTechnology’s (MeitY) production- linked incentive (PLI) scheme that seeks toboost domestic electronics manufacturing and make India a manufacturing andexport hub for mobile phones. Addressing a press conference on Saturday, theminister of electronics and IT Ravi Shankar Prasad urged Apple and Samsung toexpand their presence in India, benefiting from the Rs 41,000 crore incentivescheme.
Together, theyhave proposed to produce mobile devices and components worth over Rs 11 lakhcrore in the next five years, he added. Global mobile manufacturing companiesthat have applied under the incentive scheme are Samsung, Rising Star and threeApple contract manufacturers- Foxconn Hon Hai, Wistron and Pegatron. There hasbeen significant interest expressed by local manufacturers as well, withapplications being filed by Lava, Dixon, Micromax, Sojo, Optimus and PadgetElectronics. While Foxconn also makes mobile phones for market leader Xiaomiand HMD, the maker of the current crop of Nokia phones, none of the other Chinesecompanies such as Oppo, Vivo, Realme and OnePlus have applied for thesebenefits.
“Over the nextfive years, the scheme is expected to lead to production of mobiles andcomponents worth Rs 11.5 lakh crore. Of these, over Rs 7 lakh crore worth ofproducts will be exported. The scheme is also expected to generate three lakhdirect jobs and over nine lakh indirect jobs in the country,” Prasad toldreporters. Over 40 applications were also received for the ElectronicsManufacturing Clusters (EMC) scheme aimed at boosting manufacturing ofelectronics components. These include Austria-based AT&S and China-basedAvary, USbased Visicon, Taiwanese Walsin. Among Indian firms who have appliedare Ascent Circuits, Sahasra and SFO Technologies.
Apple-makerPegatron and Samsung have committed a cumulative investment worth Rs 11,000crore, while Lava plans to invest around Rs 800 crore over the next five years,said sources. Under the scheme, cash incentives of 4-6 per cent will beextended for five years on incremental sales of goods manufactured in Indiawith 2019-2020 as the base year. Companies that make mobile phones which sellfor Rs 15,000 or more will get an incentive of up to 6 per cent on incrementalsales of all such mobile phones made in India. In the same category, companieswhich are owned by Indian nationals and make such mobile phones, the incentivehas been kept at Rs 200 crore for the next four years.
For the firstyear, the total incentive to be given has been capped at Rs 5,334 crore, whilefor the second and third year it has been kept at Rs 8,064 and Rs 8425 crore,respectively. In the fourth year, the incentive will be hiked substantially toRs 11,488 crore, while in the fifth and final year, the incentive to bedistributed has been capped at Rs 7,640 crore.