Brain Booster for UPSC & State PCS Examination (Topic: PLI Scheme for Electronic Manufacturers)

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PLI Scheme for Electronic Manufacturers

The India government has approved ten mobile manufacturing companies for its Production Linked Incentive Scheme (PLI) scheme to boost largescale electronics manufacturing in the country as a part of the its ‘Atmanirbhar Bharat’ initiative.
Along with that, it has also given its nod for six other eligible applicants under the scheme.

The Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing notified on April 01, 2020 shall provide financial incentive to boost domestic electronics manufacturing and attract large investments.
The Scheme shall extend an incentive of 4% to 6% to eligible companies on incremental sales (over base year i.e. 2019-20) of manufactured goods including mobile phones and specified electronic components for a period of five years subsequent to the base year.
Applicant for the purpose of the Scheme is a company registered in India, proposing to manufacture goods covered under Target Segments (i.e. mobile phones and specified electronic components) in India, and making an application for seeking approval under the Scheme.
The applicant can operate new or existing manufacturing facilities to manufacture goods covered under the Target Segments.
The aforesaid manufacturing can be carried out at one or more locations in India.

All electronic manufacturing companies which are either Indian or have a registered unit in India will be eligible to apply for the scheme.
For category Mobile Phones (Invoice Value INR 15,000 and above); Consolidated Global Manufacturing Revenue of the applicant (including its Group Companies), in the target segment, should be more than INR 10,000 Crore in the base year.
For category Mobile Phones (Domestic Companies); Consolidated Global Manufacturing Revenue of the applicant (including its Group Companies), in the target segment, should be more than INR 100 Crore in the base year.
For Specified Electronic Components: Consolidated Global Manufacturing Revenue of the applicant (including its Group Companies), in the target segment, should be more than INR 50 Crore in the base year

The international mobile phone manufacturing companies that are approved under mobile phone segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron.
Out of these, 3 companies namely Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones.
Apple (37%) and Samsung (22%) together account for nearly 60% of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country.
The invoice value of phones manufactured by these companies is to be Rs.15,000 and above, as already notified by the government.
Under domestic phone manufacturing segment, the government approved Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics. These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production.
Apart from these six companies are approved under the Specified Electronic Components Segment which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync, stated the Ministry of Electronics and IT.
Over the next 5 years, the approved companies under the PLI scheme are expected to lead to total production of more than Rs. 10,50,000 crore.