MeitY is hoping to roll out the scheme by April 1 following an in-principle clearance by the Cabinet.
The outlay for production-linked incentives to make laptops, tablets, private computer systems and servers has been pegged at Rs 7,500 crore with the positive aspects anticipated to be in the variety of 2-4%. Much like it did when it rolled out production-linked incentive (PLI) scheme for companies of mobile phones, the government is most likely to set various qualifying targets for domestic and overseas corporations, official sources told FE. While overseas players would be eligible for incentives if laptops are priced more than Rs 30,000 and tablets price more than Rs 15,000, regional players would not be topic to this situation. MeitY is hoping to roll out the scheme by April 1 following an in-principle clearance by the Cabinet.
The investment targets for overseas players would be fixed at about Rs 500 crore spread more than a period of 4 years (Rs 125 crore per year) when for regional corporations it would be Rs 20 crore (Rs 5 crore per year). The annual production targets more than the base year, that would make firms eligible for the positive aspects, are but to be decided.
India is aspiring for a more than 5-fold enhance in electronics manufacturing to $400 billion by FY2025, by focusing on export markets and incentivising companies to come to be globally competitive. In the case of laptops tablets and servers, the objective is to attempt and transfer 20% to 30% of the world’s manufacturing to India.
Last April, the government rolled out a PLI scheme for significant scale electronics manufacturing. The scheme extended incentives of 4% to 6% on incremental sales more than the base year for goods manufactured in India for a period of 5 years subsequent to the base year as defined. However, applicants have indicated to the government they will not be in a position to meet the manufacturing targets just before the March-finish deadline and have sought a rollover of the milestones to the second and third years. This is only for these firms that meet their investment targets for the initially fiscal.
Experts think mobile PLI-applicant corporations are most likely to meet initially-year incremental income target in spite of challenges posed by Covid-19. Given low base and significant entry-level mobile marketplace (1,300 millio units under $200), incremental income targets for domestic mobile companies need to not be tough to attain.