Question : PLI for Indian Electronic Sector

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:

(a) the salient features of Production Linked Incentive (PLI) Scheme being implemented by the Government to give momentum to Indian Electronics Sector globally;
(b) whether the said Scheme has achieved the desired results in the country so far;
(c) if so, the details thereof and if not, the reasons therefor;
(d) the funds provided by the Government under the said scheme along with its utilisation so far; and
(e) the number of complaints received by the Government for irregularities in implementation of the said scheme since inception along with action taken thereon?

(a), (b) and (c): The Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing has been notified under the aegis of National Policy on Electronics 2019 (NPE 2019) on April 1, 2020. The Scheme shall extend an incentive of 4% to 6% to eligible companies on incremental sales (over base year) involved in mobile phone manufacturing and manufacturing of specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.

The PLI Scheme has been a huge success in terms of the interest received from across the globe. A total of 16 applications have been approved under the scheme.

Over the next 5 years, the scheme is expected to lead to a total production of about INR 10.5 lakh crore (~USD 140 billion). The scheme is also expected to bring in additional investment in electronics manufacturing to the tune of INR 11,000 crore (~USD 1.5 billion). Domestic Value Addition is expected to grow to 35-40% for mobile phones and 45-50% for electronic components.

(d): A total budget of INR 40,995 was approved by the Union Cabinet in its meeting held on 20.03.2020. So far, no disbursement claim has been received from the approved companies.

(e): The PLI Scheme is under implementation and no complaints have been received by the Government.

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