Govt approves application of 27 companies under Production Linked Incentive scheme
Approved applicants include Dell, Foxconn, HP, Lenovo, Flextronics
NEW DELHI: The government on Saturday said it has approved the application of 27 companies, including Dell, HP, Foxconn and Lenovo under the Production Linked Incentive (PLI) scheme for IT hardware.Minister for Electronics and Information Ashwini Vaishnaw, while announcing the names of successful the applicants, said this move will make India a big force in manufacturing of personal computers (PCs), servers, laptops, and tablets.
“Nearly 27 companies are ready to start manufacturing on day zero and four companies will start within 90 days. These 27 companies will lead to Rs 3,000 crore, direct employment of 50,000, and indirect employment of 1,50,000,” said Vaishnaw.
The approved companies under the PLI scheme include Dell, Foxconn, HP, Lenovo, Flextronics, VVDL, Rising Stars Hi-Tech, India Sales, Padget Electronics, SOJO, VVDN, Goodworth Electronics, Neolync Tele Communications, Syrma SGS, Bhagwati Products, Netweb Technologies, Genus Electrotech, Sahasra, Hangsine, Riot Labz, Smile, Mega Networks, Plumage Solutions, HLBS Tech, Panache Digilife, RDP Workstations, Kaynes, INP Technologies, Optiemus, ITI, and Sancraft. Vaishnaw said the government is evaluating the rest of the applications.
After receiving an overwhelming response to the PLI scheme for mobile manufacturing, the government had introduced a revised PLI scheme of Rs 17,000 crore for IT hardware in May 2023. The objective of this initiative was to boost domestic production of laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices.
However, the scheme didn’t achieve the desired results. In August 2023, the government initially mandated the requirement of a licence for importing these items starting November 1, 2023. Later, it clarified that companies would only need to register themselves on the government portal for importing these items.
In October 2023, the government introduced an Import Management System, requiring companies to register and provide details regarding the quantity and value of imported IT hardware from overseas. The aim was to monitor shipments of laptops, tablets, and computers entering the country from trusted sources.
After the government mandated firms to register for importing these items, the scheme received a substantial response. Nearly 44 major tech companies, including all significant players, applied for the scheme. Among them, the government on Saturday approved the application of 27 companies.“Companies that have not been approved, they are evaluating, and they will also come,” said Vaishnaw.