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Dixon, Lava & Karbonn meet FY22 PLI targets

Of these, Dixon has already been paid an incentive amount of Rs 50 crore by the government for the October-December quarter of FY22, for which it had submitted the invoice.

Dixon, Lava & Karbonn meet FY22 PLI targets
The total outlay for the smartphone PLI over five years is Rs 40,951 crore and the incentive ranges 4-6% annually. (Photo: Pixabay)

It’s not just global smartphone manufacturers like Apple and Samsung which have met the incremental production and sales target for FY22 under the smartphone production-linked incentive (PLI) scheme.

Three domestic handset manufacturers — Padget Electronics, which is a 100% subsidiary of Dixon Technologies; Lava International; and UTL Neolyncs, makers of Karbonn handsets — have also met the target for FY22 and will be filing invoices to claim incentives.

Of these, Dixon has already been paid an incentive amount of Rs 50 crore by the government for the October-December quarter of FY22, for which it had submitted the invoice.

Also Read: Govt planning 7-8 more PLI schemes to expand coverage

After from five global manufacturers, five domestic smartphone manufacturers had been selected for the PLI scheme. With three of the domestic companies having met the targets, the other two — Bhagwati (Micromax) and Optiemus Electronics — need to catch up, industry sources said.

The PLI scheme for smartphones has different targets for global and Indian players. In the first year, global players were required to invest Rs 250 crore and manufacture goods worth Rs 4,000 crore more than the previous year. The phones made by global players should have an invoice value of over Rs 15,000.

In the case of Indian players, the investment target was Rs 50 crore and they were required to manufacture phones worth Rs 500 crore in the first year.

In September, exports of smartphones from India touched $1 billion for the first time, largely due to an increase in production by global companies like Samsung and Apple. The global players contribute about 80% to the smartphone exports, whereas domestic players have a minuscule share.

“Among the domestic handset makers, only Padget exported smartphones worth $9-10 million in September,” sources said.

Also Read: Telecom products PLI: Samsung, Nokia among 42 selected

Among global players, Samsung was the only firm which met the targets for FY21, but has still not been disbursed the incentive amount as the government has found discrepancies in its invoices. For FY22, the company is yet to submit the invoices.

Apple’s contract manufacturers Wistron, Foxconn, and Rising Star are also eligible for incentives for FY22, once they submit their invoices. Another Apple contract manufacturer, Pegatron, began production only in FY23 and will become eligible only at the end of the current fiscal. The total outlay for the smartphone PLI over five years is Rs 40,951 crore and the incentive ranges 4-6% annually.

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First published on: 02-11-2022 at 06:00 IST