The PLI program for large-scale electronics manufacturing, which was introduced to stimulate domestic production of electronic components, has had its first disbursement approved by the Empowered Committee. The first company to benefit from the incentive under the scheme is Padget Electronics Pvt Ltd, which is a subsidiary of Noida-based contract manufacturer Dixon Technologies Pvt Ltd.
Padget Electronics will receive a disbursement of Rs 53.28 crore under the PLI Scheme for Large Scale Electronics Manufacturing. “The Empowered Committee (EC)…has approved the first disbursement of Rs 53.28 crore under the PLI scheme for large scale electronics manufacturing to M/s Padget Electronics Private Limited as recommended by the agency of project management i.e. M/s IFCI Ltd. Padget Electronics Pvt. is a wholly owned subsidiary of “Dixon Technologies (India) Pvt Ltd”, the Ministry of Electronics and Technology said. computer in a press release.
He added that the goal is to make domestic manufacturing globally competitive and create national manufacturing champions. The strategy behind the program is to offer financial incentives to boost electronics manufacturing and attract large-scale investment.
The PLI program for large-scale electronics manufacturing was notified on April 1, 2020. This program extends an incentive from 4% to 6% on net incremental sale of manufactured goods covered by the “target segment”, including mobile phones and specified electronic products. Components.
The total expenditure under the scheme is Rs 38,645 crore. A total of 16 companies (five global companies in the “mobile phone” category (bill value at Rs 15,000 and above), five domestic companies and six companies in specified electronic components have been approved under the program.
“After the success of the first cycle of the PLI program, the second cycle of the PLI program with the target segment of specified electronic components has been opened until March 31, 2021, incentivizing 5% to 3% on additional sales to eligible companies, for a period of four (4) years. 16 companies have been approved by the competent authority under the second cycle of the PLI programme. »
The duration of the PLI Scheme has been extended by one year, i.e. from 2024-25 to 2025-26. The notification in this regard was published on September 23, 2021. Of a total of 16 companies, 15 opted for the extension.
The Ministry of Electronics and Information Technology is continuing with other candidates eligible for the program to submit their disbursement requests for the year 2021-22. The PLI scheme for large-scale electronics has become the most successful scheme. As of June 2022, the program has led to a total production of over Rs 1,67,770 crore, including exports of Rs 65,240 crore. The PLI scheme also generated 28,636 jobs. Over the past three years, smartphone exports have increased by 139%.
“Electronics manufacturing is expected to reach $300 billion by 2025-2026. Programs like PLI will make India a competitive destination for electronics manufacturing and create more national champions besides giving a boost to Atmanirbhar Bharat,” the statement read.
Read all Latest business news and recent news here