Govt Likely To Approve Projects Under PLI Scheme By September: Report

The Centre will likely approve projects under the INR 22,919 Cr production-linked incentive (PLI) scheme for electronics components manufacturing by August-September.

An ET report, citing sources close to the matter, said that the scheme received more than 100 applications for manufacturing various electronics components, including display modules, camera units and battery packs.

The applications came from existing as well as new entrants in the electronics manufacturing space.

The government is likely to hire a project management agency within a month to look after the applications, the source added.

The union cabinet approved this scheme on March 28, to focus on non semiconductor electronics components.

The scheme aims to attract an investment of INR 59,350 Cr, resulting in production of INR 4,56,500 Cr, and generating additional direct employment of 91,600 persons and many indirect jobs as well.

The tenure of the scheme is six years with one year of gestation period. Payout of a part of the incentive is also linked with employment targets achievement.

During the approval of the scheme, the government had said, “The scheme provides differentiated incentives to Indian manufacturers tailored to overcome specific disabilities for various categories of components and sub-assemblies so that they can acquire technological capabilities and achieve economies of scale.”

In May, Union minister Ashwini Vaishnaw confirmed that the PLI scheme got more than 70 applications.

The ‘Atmanirbhar’ Moment For Indian Electronics Market

As per the Economic Survey tabled by the union finance minister Nirmala Sitharaman on January 31, the production of electronic goods in India stood at INR 9.52 Lakh Cr in FY24, against INR 1.90 Lakh Cr in FY15.

As per FY15’s data, mobile phone imports accounted for 78% of the market in value terms. This number was trimmed down to 4% by FY23.

India’s electronic market, which represents 4% of the global market in the segment, is rapidly growing and attracting the manufacturers to cash on this opportunity.

In December, homegrown electronics manufacturer Dixon Technologies inked a pact with Vivo India to launch an original equipment manufacturer (OEM) facility via a joint venture to make smartphones in India.

Besides, states including Tamil Nadu, Gujarat and Uttar Pradesh are also bullish on cashing on this electronic manufacturing wave in the country.

For instance, Tamil Nadu launched the Electronics Components Manufacturing Scheme (ECMS) in April, to attract INR 30,000 Cr worth of investments and generate 60,000 jobs in the state.

Similarly, Gujarat also submitted a draft policy to incentivise and boost electronics components manufacturing in the state. Besides, it is said that Uttar Pradesh is also working on a similar policy.