Breather For Companies as Large Electronics’ PLI Gets Tenure Extension

- Advertisement -

The government noted that investments made in 2020-21 will also be counted. Participating companies will get the option of choosing any five years for meeting their production targets under the scheme

The government of India has extended the tenure of PLI for Large Scale Electronics Manufacturing by a year. Smartphones are pegged as a major category in the scheme. It is to be noted here that multiple industry bodies had requested for the reform in March. Pandemic driven supply shortages and other supply chain constraints were hinted towards as reasons leading the companies failing to meet the targets set by the scheme.

“This decision will enable the nation to become a global electronics manufacturing destination and also sent the right message to the global investors in the pandemic time. It shows that India’s governance is deeply compassionate, realistc, and always standing behind trade and industry,” said Pankaj Mohindroo, Chairman, ICEA.

- Advertisement -

George Paul, chief executive officer (CEO) of the Manufacturers Association of Information Technology (MAIT) said, “Our competitors are competing nations and we have to be more agile than them to attract manufacturing into India,”

The government noted that investments made in 2020-21 will also be counted. Participating companies will get the option of choosing any five years for meeting their production targets under the scheme.

To claim incentives, global companies need to achieve minimum incremental sales of Rs 4,000 crore in first year, Rs 8,000 crore in second year, Rs 15,000 in third year, Rs 20,000 crore in fourth year and Rs 25,000 crore in fifth year. For India based companies, these incremental sales targets are fixed at Rs 500 crore in first year, Rs 1,000 crore in second year, Rs 2,000 crore in third year, Rs 3,500 crore in fourth year and Rs 5,000 crore in fifth year.

“Either all the companies seek a deferment of the entire policy implementation by one year or all of them consider 2020-21 as the first year. We cannot give incentive to one company and defer it for the others,” a government official had said earlier.

Samsung Electronics is the only company that surpassed the investment and output target set under the production-licked incentive (PLI) scheme for the handset and other manufacturing components this year. This could have meant that other handset and component manufacturers like Foxconn, Wistron, Optiemus, Dixon, Lava, Bhagwati, UTL, Sahasra, AT&S and Neolync will not receive any incentive from the Rs 5,334 crore budget earmarked for this financial year. A final call on the matter, however, is yet to be taken.

- Advertisement -

Most Popular Articles

Mitul Shah Joins Google To Lead Pixel Expansion

0
Eyeing Pixel's growth and manufacturing in India, there was a new appointment at Google recently. Mitul Shah, ex-Apple India sales leader joined to lead...
US Chip Manufacturing

US Commerce Department To Grant $60Mn Awards To BAE Systems And Rocket Labs

0
Secretary Gina Raimondo stated that under Biden's CHIPS Act, they would like to finalize as many awards as possible before President Trump begins his...
Chip Design in India

Kaynes Semicon, 7 Rays Semiconductors Inks Pact To Enhance Chip Design And Packaging

0
The partnership will deliver cutting-edge custom system-on-chip design solutions tailored to emerging technologies in various sectors. Kaynes Semicon and 7 Rays Semiconductors are thrilled to...

Hesai To Cut Lidar Prices By Half, Expects Broad Electric Car Adoption

0
David Li, the Chief Executive, stated in an interview that the industry is advancing to a phase where millions of cars sold each year...

Sateliot, Eseye Join Forces For Global IoT Connectivity Solutions

0
Partnering to ensure seamless coverage in even the most remote locations utilising 3GPP Rel.17 standard, Eseye and Sateliot are set to revolutionise global IoT...
Andy C Mackie, Principal Engineer - Advanced Materials, Indium Corporation

“Our Multi-Alloy System Enables Solder Joints To Form At Lower Processing Temperatures Without Sacrificing...

0
Liquid metal-based thermal solutions offer efficient cooling but face challenges like spillage and thermal resistance in ultra-thin layers. Akanksha Sondhi Gaur and Nijhum Rudra...
S.K. Yadav of RIGOL Technologies

“Our India Business Is $2 Million, With A Goal To Reach $6 Million” –...

0
In a chat with EFY’s Nitisha, S.K. Yadav of RIGOL Technologies highlights the company’s journey in India, shedding light on its growth prospects and...
Bejoy George, Managing Director- Chipmax Designs Private Limited,

“We Are Advancing R&D Projects To Develop Modular Assembly Lines With Adaptive Robotics” –...

0
How do you envision technological progressions influencing the future of manufacturing operations? Get informed from Electronics for You’s Akanksha while in dialogue with Bejoy...
Srinivas Parikshith, Co-founder of Auckam Technologies

“We Anticipate Turnover Reaching 40 Million Rupees Next Year With The New Product Line”...

0
Discussing the electronics manufacturing sector, Srinivas Parikshith, Co-founder of Auckam Technologies, talked to EFY’s Nitisha Dubey about their expansion plans to set up a...

“We Bring Intelligence Early On Into The Design Cycle” – Michel Van Cotthem VP...

0
With a solution embedding intelligence early in the design-to-source lifecycle, Supplyframe aims to leverage India’s electronics manufacturing boom. At IEW 2024, Michel Van Cotthem...

HKTDC Electronics Fair Sparks Innovation, 60,000+ Participants!

0
Showcasing cutting-edge tech, global innovation, and booming markets for the future of electronics, HKTDC’s Hong Kong Electronics Fair and electronicAsia drew 60,000+ professionals. Last month,...
Applied Materials Representational Image

Applied Materials Selects Six Startups For Deep-Tech Accelerator Programme

0
The selected deep-tech startups will be evaluated for investment by Applied Ventures and potential collaboration opportunities with Applied Materials. In collaboration with the company's India...

Space tech Startup Akash Secures $68M CHIPS Funding

0
Eyeing to power into AI, EVs, and more high-tech industries, Akash Systems lands $68 million CHIPS grant to boost its cooling tech facility, generating...

Wireless Light-Based Communication With Velmenni’s Technology

0
Velmenni is at the forefront of wireless communication innovation with its pioneering light-based technologies, Li-Fi and LC Link. Founded by Deepak Solanki in October 2014...

Harnessing AI Technology For Efficient Pest Management

0
AI-Genix, an agri-tech startup, is transforming pest management for farmers through advanced AI-enabled systems that precisely target harmful pests. In an industry where pesticides and...

Industry's Buzz

Learn From Leaders

Startups