Government notifies PLI 2.0 for IT harware; application window to open on Friday
Government on May 29 notifies the second phase of Production-Linked Incentive (PLI) Scheme 2.0 for IT Hardware. The scheme has a total outlay of Rs 17,000 crore and it was approved by the Union Cabinet on May 17, 2023.
PLI 2.0 is aimed at boosting the mass production of Laptops, Tablets, All-in-One PCs, Servers and Ultra Small Form Factor (USFF) devices and helping achieve electronics manufacturing revenue of about USD 300 billion by 2025-26.
In addition to this, the scheme targets to promote the localisation of sub-assemblies and components and to create a local supply chain network. Besides this, the scheme anticipates achieving a total output of about ₹ 3.35 lakh crore, attracting an extra investment of Rs 2,430 crore in electronics manufacturing and creating 75,000 more direct jobs.
The scheme is flexible in terms of tenure and investment. The tenure of the scheme is of six years but applicants can choose 2023, 2024 or 2025 as the base year for investment. In addition to this, they are allowed to count incremental investment done by manufacturers of components/sub-assemblies etc. for meeting the incremental investment thresholds for individual years.
Application window under PLI 2.0 will open from June 1, 2023, onwards and approved applicants of existing PLI, who have not claimed any incentive, will be allowed to apply under PLI 2.0. Those applicants who have claimed incentive will be allowed from the second year onwards.
The scheme has three categories of applicants including global companies, hybrid (global/domestic) companies and domestic companies. Under the scheme, global companies will need to invest Rs 500 crore over six years, while hybrid and domestic companies will need to invest Rs 250 crore and Rs 20 crore, respectively.
Furthermore, applicants can also get extra incentives based on a localisation schedule that is notified as part of the scheme. Applicants may source the printed circuit board assembly (PCBA) locally in the first year, and then add at least one more component/sub-assembly every year to gain more incentives.
Meanwhile, the government’s target is to increase electronics manufacturing capability to Rs 24 lakh crore by 2025-26, which will also help create over 10 lakh jobs, Union Minister of State for Electronics and IT, Rajeev Chandrasekhar, said while addressing a gathering of students here as part of the ‘New India for Young India Initiative’.
“There are more than 90,000 startups, including 110 unicorns, in which Young Indians are playing a big part. They have achieved their success due to their hard work and efforts and not because of any connections or famous last name, ” he told audience.
The post Government notifies PLI 2.0 for IT harware; application window to open on Friday appeared first on Techlusive.
Government on May 29 notifies the second phase of Production-Linked Incentive (PLI) Scheme 2.0 for IT Hardware. The scheme has a total outlay of Rs 17,000 crore and it was approved by the Union Cabinet on May 17, 2023.
PLI 2.0 is aimed at boosting the mass production of Laptops, Tablets, All-in-One PCs, Servers and Ultra Small Form Factor (USFF) devices and helping achieve electronics manufacturing revenue of about USD 300 billion by 2025-26.
In addition to this, the scheme targets to promote the localisation of sub-assemblies and components and to create a local supply chain network. Besides this, the scheme anticipates achieving a total output of about ₹ 3.35 lakh crore, attracting an extra investment of Rs 2,430 crore in electronics manufacturing and creating 75,000 more direct jobs.
The scheme is flexible in terms of tenure and investment. The tenure of the scheme is of six years but applicants can choose 2023, 2024 or 2025 as the base year for investment. In addition to this, they are allowed to count incremental investment done by manufacturers of components/sub-assemblies etc. for meeting the incremental investment thresholds for individual years.
Application window under PLI 2.0 will open from June 1, 2023, onwards and approved applicants of existing PLI, who have not claimed any incentive, will be allowed to apply under PLI 2.0. Those applicants who have claimed incentive will be allowed from the second year onwards.
The scheme has three categories of applicants including global companies, hybrid (global/domestic) companies and domestic companies. Under the scheme, global companies will need to invest Rs 500 crore over six years, while hybrid and domestic companies will need to invest Rs 250 crore and Rs 20 crore, respectively.
Furthermore, applicants can also get extra incentives based on a localisation schedule that is notified as part of the scheme. Applicants may source the printed circuit board assembly (PCBA) locally in the first year, and then add at least one more component/sub-assembly every year to gain more incentives.
Meanwhile, the government’s target is to increase electronics manufacturing capability to Rs 24 lakh crore by 2025-26, which will also help create over 10 lakh jobs, Union Minister of State for Electronics and IT, Rajeev Chandrasekhar, said while addressing a gathering of students here as part of the ‘New India for Young India Initiative’.
“There are more than 90,000 startups, including 110 unicorns, in which Young Indians are playing a big part. They have achieved their success due to their hard work and efforts and not because of any connections or famous last name, ” he told audience.
The post Government notifies PLI 2.0 for IT harware; application window to open on Friday appeared first on Techlusive.
