32 cos apply under PLI scheme for IT hardware, says Vaishnaw

Buoyed over the initial success of Production Linked Incentive (PLI) scheme for hardware, Union Minister for Electronics, IT and Telecom Ashwini Vaishnaw said on Wednesday that the response to the scheme was better than anticipated and the government is expecting to get investments worth Rs 2,430 crore as 32 companies, including global biggies like HP, Dell, Lenovo, Acer, Thomson, have applied under the scheme.

However, Apple has not applied to avail the benefits of the IT Hardware PLI 2.0 scheme, but one of its contract manufacturers, Foxconn, under Rising Stars Hi Tech is in the list of 32 applicants.

Claiming that the scheme would generate direct employment for 75,000 people while generating incremental production worth Rs 3.35 trillion, Vaishnaw said, “India is emerging as a trusted supply chain partner and value added partner. All reputed companies are happy to come to India for manufacturing and design.”

Besides global players in electronic manufacturing, a host of domestic companies such as Dixon Technologies, VVDN and Netweb have also applied under the IT Hardware PLI 2.0 scheme.

“The companies are coming and everybody is working on developing their local supply chain. The production, as required under the scheme, is expected to begin within fiscal year 2024,” he said, adding that the companies will get a choice between FY24 and FY25 to begin availing the incentives under the scheme.

Notably, the government had approved a six-year PLI scheme for IT hardware products in May this year to attract top hardware companies such as HP, Dell and Apple to India for manufacturing of laptops, tablets, all-in-one personal computers, servers, etc.

Among the local electronics manufacturing players, Dixon Technologies’ subsidiary Padget Electronics, and Optiemus Electronics have applied for the scheme as well.

It’s worth mentioning that several of the companies that have applied for the PLI scheme are likely to be impacted by the import restrictions that will come into effect from November 1, 2023. The companies will have to mandatorily take licence for importing the products.

In reply to a question, Vaishnaw clarified that the companies did not communicate any concern or issues with the upcoming restriction on imports of laptops, tablets, all-in-one personal computers, servers and ultra small form factor devices.