November 10, 2023
Out of the 40 applications received under the PLI scheme, the government is expected to approve ten proposals initially
Additional significant companies, including Padget (Dixon Technologies), VVDN, Netweb, Syrma, Optiemus, and Kaynes Tech
Companies whose proposals did not make the initial cut have been instructed to submit revised applications
In the coming days, 20 more companies may receive approvals under the scheme
The approval of proposals for Information Technology (IT) hardware manufacturing is anticipated from the central government under its production-linked incentive (PLI) scheme, with HP India, Lenovo India, and Flexotronics likely to be among the recipients, according to media reports.
Significant companies, including Padget (Dixon Technologies), VVDN, Netweb, Syrma, Optiemus, and Kaynes Tech, will receive similar approvals in the coming days.
The government is expected to approve ten proposals of the 40 applications received under the PLI scheme. The oversubscription of the scheme is noted, and the selection of approximately ten companies is based on factors such as order lineups, expertise in IT hardware manufacturing, and clarity in the investment roadmap, stated one source.
According to sources familiar with the matter, the Ministry of Electronics and Information Technology will likely confirm these approvals and make an official announcement in the next few days. At the time of press, responses to ET’s mail from HP, Dell, Lenovo, Padget (Dixon), VVDN, Netweb, and Optiemus were not received, while Flextronics, Syrma, and Kaynes could not be reached.
According to an official in the know, companies whose proposals did not make the initial cut have been instructed to submit revised applications, including details on the financial viability of their projects and organisational structure. Additionally, in the coming days, 20 more companies may receive approvals under the scheme, to approve up to 30 companies to ensure critical mass in India and international markets.
In August, the government announced that it had received proposals from 40 companies, with expected incremental investments of INR 5,010 crore for additional production worth INR 4.65 lakh crore over six years, including exports of INR 28,288 crore. The second phase of the PLI scheme for IT hardware, notified in May, has a budgetary outlay of INR 17,000 crore, more than doubling the incentives offered in the first phase, to attract global companies to manufacture in India.
Source: Economic Times