38 companies apply for IT hardware subsidy

HP, Dell, Lenovo, Thompson, Acer, Asus to make laptop, tablet, PCs locally from next year
Union Minister Minister Ashwini Vaishnaw. (Photo | Shekhar Yadav, EPS)
Union Minister Minister Ashwini Vaishnaw. (Photo | Shekhar Yadav, EPS)

NEW DELHI:  Thirty-eight companies have applied under the production linked incentive (PLI) scheme for locally assembling laptop, personal computer,  server and tablet, said IT minister Ashwini Vaishnaw on Wednesday. However, Apple has not applied for the subsidy.  Companies like HP, Dell, Lenovo, Thompson, Acer, and Asus will manufacture laptop, tablet and PCs while HPE, VVDN, Netweb and Lenovo will be manufacturing servers in the country by next year.  Nearly 29 companies will start production in the country by April 2024, and three will begin production by 2025.

“We have received a very good response, much more than what we anticipated. The application by global companies showcases their confidence in India in electronic manufacturing,” said Vaishnaw.
As per the government, there will be incremental production of Rs 3,35,000 crore under this scheme and incremental investment will be Rs 4,000 crore. The minister said the scheme will generate 75,000 direct employments in the country.  

The government revised the scheme outlay for IT hardware to Rs 22,880 crore on Wednesday from Rs 17,000 crore announched in May to boost domestic production of laptops, tablets, all-in-one personal computers (PCs), servers, and ultra-small form factor devices in the country. On August 4, the government mandated the requirement of licence to import these items from November 1, 2023. It is believed that the better response to the scheme came after this decision. However, the government denies it.

“Among the companies, most of them are either coming directly, or with their local partners,” he said.  For instance, Dell will be manufacturing its own product while HP will come up with their partners. 
The minister also mentioned that domestic electronic manufacturing companies have already ramped up their production capacity. 

For instance, Dixon will have a plant in Noida where there will be more than 20,000 people working. 
Though US tech giant Apple Inc. has given a miss to an incentive plan to manufacture laptops, the governement is confident that the company will start manufacturing in the next few years. Another official said that the company has already enhanced its manufacturing in the country, and it will take time to manufacture other items.

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