Wistron, Foxconn, Dell among 14 to get nod under PLI scheme for IT hardware

Dell logos are seen at its headquarters in Cyberjaya, outside Kuala Lumpur September 4, 2013. REUTERS/Bazuki Muhammad (MALAYSIA - Tags: BUSINESS LOGO SCIENCE TECHNOLOGY) - GM1E9941MTI01

The government said 14 companies, including Dell, Lava, Dixon, Wistron and Foxconn, have received approval under the Production Linked Incentive Scheme (PLI) for IT hardware.

Over the next four years, these companies are expected to fuel a total production of over Rs 1.61 lakh crore, and generate direct employment opportunities for over 36,000 people.

The PLI scheme for IT hardware, which was notified on March 3, 2021, provides an incentive of 1 to 4 per cent to eligible companies on net incremental sales over the base year of FY 2019-20 of goods under target segments that are manufactured in India for a period of four years (FY22 to FY25).

The target segments under the PLI scheme for IT hardware include laptops, tablets, all-in-one personal computers (PCs) and servers.

The programme seeks to boost domestic manufacturing and attract large investments in the value chain of these IT hardware products.

"Four companies have been selected under the category IT Hardware Companies which include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn)," an official statement said.

Wistron and Foxconn are Apple's contract manufacturers.

Under the category of domestic companies, proposals from 10 firms have been approved.

These include Lava International Ltd, Dixon Technologies (India) Ltd, Infopower Technologies (JV of Sahasra and MiTAC), Bhagwati (Micromax), Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife.

Electronics and IT Minister Ravi Shankar Prasad said the PLI scheme has been a huge success in terms of the applications received from global as well as domestic manufacturing companies.

Industry has reposed its faith in India's stellar progress as a world class manufacturing destination and this resonates strongly with the Prime Minister's clarion call of Atmanirbhar Bharat -- a self-reliant India, he said.

"We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country," he added.

It is estimated that in the next four years, the approved companies under the PLI scheme for IT hardware are expected to clock a total production of more than Rs 1.61 lakh crore.

Out this, the players under "IT hardware companies" category have proposed production of Rs 84,746 crore. The approved companies under "Domestic Companies" category have proposed production of Rs 76,007 crore.

The scheme will bring additional investment in IT hardware manufacturing to the tune of Rs 2,517 crore, the statement said.

Domestic value addition is expected to grow from the current 10-15 per cent to 25-30 per cent, it added.

Creation of domestic champion companies in electronics manufacturing under the scheme will give fillip to "vocal for local", while aiming for global scale.

Given the current global scenario, the world of manufacturing is undergoing a paradigm shift. Manufacturing companies across the globe are looking to diversify their production locations to mitigate the risk involved in depending on a single market.