Meity extends deadline for IT hardware PLI application till April 30

By: |
April 16, 2021 10:27 PM

The latest IT hardware scheme offers incentives between 4-1 per cent on net incremental sales (over the base year 2019-20) of goods manufactured in India and covered under the target segment to eligible companies for a period of four years.

Meity extends deadline for IT hardware PLI application till April 30(Representational image)

The Electronics and IT ministry has extended the application window for the IT hardware production-linked incentive (PLI) scheme till April 30.

The scheme with an outlay of Rs 7,350 crore will provide an incentive for manufacturers of laptops, tablets, all-in-one PCs and servers.

“PLI scheme was open for receiving applications till March 31, 2021, which has been extended to April 30, 2021, with the approval of competent authority,” the ministry of electronics and IT said in the scheme guideline issued on Thursday.

The latest IT hardware scheme offers incentives between 4-1 per cent on net incremental sales (over the base year 2019-20) of goods manufactured in India and covered under the target segment to eligible companies for a period of four years.

The government estimates production worth Rs 3.26 lakh crore and exports of Rs 2.45 lakh crore over the next four years under the scheme, which is expected to create 1.80 lakh jobs.

The scheme is expected to usher additional investment in electronics manufacturing to the tune of Rs 2,700 crore.

Domestic value addition for IT hardware is expected to rise to 20-25 per cent by 2025 from the current 5-10 per cent due to the impetus provided by the scheme.

“For the purpose of determining the eligibility of an applicant with respect to net incremental sales of manufactured goods for any year, the net incremental sales of manufactured goods (covered under the target segment) for such year over the base year irrespective of the invoice value shall be considered,” the guidelines said.

An empowered group of secretaries, headed by the Cabinet Secretary, will monitor the scheme and undertake a period review of the outgo under the scheme.

“The EGoS may revise incentive rates, ceilings, target segment(s) and eligibility criteria as deemed appropriate during the tenure of the scheme,” the guidelines said.

IT hardware companies having a turnover of over Rs 5,000 crore in the manufacturing of laptops, tablets, all-in-one PCs or servers or more than Rs 10,000 crore for electronics hardware products or sub-assemblies or components in the base year are eligible to apply for the scheme.

In the case of domestic companies, the turnover should be over Rs 10 crore in the target product segment or over Rs 20 crore for electronics hardware or sub-assemblies or components, according to the guideline.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
130 lakh MSMEs register in 10 months on govt’s new Udyam portal; India’s registered MSME base at over 1 cr
2Truck rentals drop by 5-7% in past fortnight as Covid lockdowns hit production
3Truckers demand relief measures as losses mount to Rs 42,000 cr due to lockdowns