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Last Updated : Aug 01, 2020 02:26 PM IST | Source: Moneycontrol.com

Samsung, Foxconn apply for PLI; commitments worth Rs 11.5 lakh crore made, says Ravi Shankar Prasad

The IT minister added that companies will be eligible for incentives from August 1.

The government’s performance-linked incentive (PLI) scheme for the mobile phone sector has “given us hope and secured a favourable response,” Union Minister for Information Technology and Communications Ravi Shankar Prasad, said on August 1.

“We have introduced the PLI scheme for five years to boost local production. It has given us hope, secured favourable response. We have received 22 applications under the scheme. Besides this, we have received commitments to make mobile phone and parts worth Rs 11.5 lakh crore,” Prasad said.

Prasad made the remarks while addressing the media to explain the Centre’s PLI scheme, adding that initiatives such as Digital India and Make in India have been “transformative programmes.”

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Prasad added that companies will be eligible for incentives from August 1.

He further enumerated that of the Rs 11.5 lakh crore, Rs 7 lakh crore worth of mobiles and components will be exported. “Over 3 lakh people will receive direct employment. More than 9 lakh people will get indirect employment,” he added.

Prasad listed companies that have applied for the PLI. Samsung, Pegatron, Wistron, Foxconn and Rising Star are among the global players. Domestic players include Lava, Dixon, Micromax, Soho and Optimus.

Notably, Apple with 37 percent and Samsung with 22 percent together hold 60 percent of all global mobile phone sales revenue.

“Apple, Samsung (are) welcome to India, we urge boost in manufacturing. We welcome Indian companies such as Lava, Micromax, and urge them to transform into champions,” Prasad said.

India’s electronic production has jumped by 23 percent over the past five years and value addition is expected to grow from 15-20 percent to 35-40 percent, the minister said, adding that mobile manufacturing alone has “grown from two factories in 2014-2016 to more than 250 factories now – increasing from 6 crore units produced in 2014 to 33 crore units.”

“India offers a stable investor-friendly government, a huge domestic market and a popular leader of the stature of Prime Minister Narendra Modi,” he listed as reasons for companies to be interested, adding that the scheme is not against any country, but “is industry positive.”

“We have proper rules and regulations with regard to our security and with bordering countries,” he said.
First Published on Aug 1, 2020 02:26 pm
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