Six global electronics equipment manufacturers including Samsung, LG, and Pegatron are eyeing India to ramp up their presence under PM Modi's Production-Linked Incentive (PLI) scheme.
Six global electronics equipment manufacturers including Samsung, LG, and Apple’s iPhone manufacturing partner Pegatron are eyeing India to ramp up their presence under Prime Minister Narendra Modi government’s Production-Linked Incentive (PLI) scheme. These firms are in the final stages of discussion with the Electronics and IT Ministry (MeitY), and have a special three-day window to finalize the deal under which they will be able to either set up new units or expand the existing ones, The Indian Express reported citing unnamed government officials. “The talks are in the final stages. Most of these deals will for now be in the sub $1-billion (roughly Rs 7,500 crore) range for now. More applications could come in before July 31,” an official said.
The government had advertised the PLI scheme in April and the six companies have approached the government to avail benefits of the scheme, the newspaper cited senior government officials as saying. Other than Samsung and Pegatron, Singapore-based Flextronics, which is now known as Flex, has also reached out to the government as it looks to expand its Chennai unit. Flex currently operates 10 other units in India, in addition to the one in Chennai. LG has also shown interest in the scheme.
What is PLI scheme?
Under the PLI scheme which was notified this April, companies which decide on setting up new mobile and specified equipment manufacturing units or to expand their present units will get incentives of 4 to 6% on incremental sales from goods made in India. Incentives will also be provided on the manufacturing of some electronic equipment such as transistors, diodes, thyristors, etc.
The government aims to give incentives worth over Rs 5,000 crore in total in the first year which will be divided amongst the participants and is open for a total of five years. The total incentive for each company is to be decided by a committee, which will comprise of secretaries from the Department of Economic Affairs, Department of Expenditure, Department of Revenue, Department for Promotion of Industry and Internal Trade, and Directorate General of Foreign Trade, other than the MeitY secretary and the chief executive officer of the Niti Aayog.