IT Hardware PLI 2.0

Indian Government has launched again a PLI Scheme to incentivize manufacturing of consumer electronics in the country. Salient features of the scheme are as follows:-

Total Budgetary Outlay – Rs. 17,000 crore.

Tenure – 6 years

Target Segments – Laptops, tablets, all-in-one PCs,   servers and ultra small form factor devices.

Expected incremental investment is Rs. 2,430 crore.

Expected incremental production is Rs. 3.35 Lakh crore.

Expected incremental direct employment is 75,000.

First set of applications accepted by October 2023.

Companies will get incentives of up to 5% and an additional optional incentive will also be given if they use domestically-produced components.

Maximum PLI Benefit under this scheme at 8-9% if it supports complete localisation.

Selection of applicants under each category i.e., global, hybrid and domestic shall be done on the basis of ranking of the applicant and their overall PLI projection.

1. The number of applications allowed per applicant for support under the Scheme shall be restricted to one (1).
2. The applicants of existing PLI Scheme, who have not claimed any incentive will be allowed to participate in PLI 2.0 Scheme as new entrant, provided they are selected.
3. The applicants of existing PLI Scheme, who wants to claim incentive (Year 1/Year 2), will be allowed to participate in PLI 2.0 Scheme from the next year (Year2/Year3) for which incentive is not claimed provided they are selected. In such cases, their investment done during tenure of existing PLI Scheme will be considered as eligible investment under the PLI 2.0 Scheme.
4. Eligibility shall be subject to thresholds of incremental investment and net incremental sales of manufactured goods (covered under the target segment) as mentioned in the next slide.

Incremental Investment required under the scheme

Incremental Sales to be achieved

Need support in applying for the PLI Scheme. Reach out to us for support through contactus@finexadvisors.in