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Source: IBEF

“The Government has initiated inviting applications for the second round of large-scale electronics manufacturing under the production-linked incentive (PLI) scheme, with a strong reliance on some electronic components such as motherboards, semiconductor devices, among others.

The application window for the scheme has been opened until March 31, 2021, which could be further extended in accordance with the guidelines issued by the Meity (Ministry of Electronics and IT).

The second round of the PLI scheme is available for applications to be accepted. The duration of the second round of the PLI scheme shall be four years and the incentive shall apply from April 1, 2021, according to an official letter dated March 11, 2021.

The first round of the scheme was available until July 31, 2021, which encouraged the participation of major global players such as Apple contract manufacturers Foxconn, Wistron and Pegatron; Samsung; local players Lava, Optiemus, Dixon, etc. – investing more than Rs. 11,000 crore (US$ 1.51 billion).

Though the first round focused on mobile manufacturing with subsidies for 20 companies, the second round extended the window to up to 30 eligible companies.

The proposed rules have classified components, discrete semiconductor devices, including transistors, diodes, etc., passive components, including resistors, capacitors, printed circuit boards, assemblies, ATMP units (assembly, testing, marketing and packaging), etc. for the second round of PLI.

Subsidies under the second round of the PLI scheme shall apply from April 1, 2021, as indicated in the Guidelines.

The companies whose projects have been approved in the first round of the PLI cannot take part in the second round, their group companies with a minority or non-controlling interest in the applicant companies will be permitted to apply for incentives in accordance with the new guidelines.”