The government has extended the application date for the Rs 17,000-crore production-linked incentive (PLI) scheme for IT hardware. Interested companies or applicants can now apply until August 30, 2023. This is the second time that the government has extended the deadline for the scheme announced on May 14, 2023. In this the government more than doubled the incentives offered in the initial version of the plan.
What is PLI Scheme 2.0
The PLI Scheme 2.0 for IT hardware is expected to result in broadening and deepening of the manufacturing ecosystem by encouraging the localisation of components and sub-assemblies and allowing for a longer duration to develop the supply chain within the country. Additionally, the scheme provides increased flexibility and options for applicants, and is tied to incremental sales and investment thresholds to further incentivise growth. Furthermore, semiconductor design, IC manufacturing, and packaging are also included as incentivised components of the PLI Scheme 2.0 for IT hardware.
The scheme shall extend an average incentive of around 5% on net incremental sales (over base year) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of six years. The target segment under PLI shall include (i) Laptops (ii) Tablets (iii) All-in-One PCs (iv) Servers and Ultra Small Form Factor (USFF).
Support under the Scheme shall be provided to companies based on the eligibility criteria laid down for manufacturing of goods (covered under the target segment) in India.
The scheme is aimed at broadening and deepening the IT hardware manufacturing ecosystem in the country. It intends to attract global companies like Dell, HP, Apple, and Samsung to manufacture IT hardware such as laptops, tablets, all-in-one PCs, servers, and ultra small form factors in the country.
New timelines
The revised scheme added flexibilities in both tenure and investments for participants. While the tenure of the scheme is for six years, participants can choose 2023, 2024, or 2025 as the base year for investment and calculating their incremental sales.
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