Govt clears new phase of electronics PLI scheme amounting to INR 765 cr.

The government will release financial incentives worth INR 601.93 crore to Wistron, Apple Inc's contract manufacturer

March 15, 2023

The government will release financial incentives worth INR 149.63 crore for Indian contract manufacturer Padget (Dixon Technologies)

The government has also allocated INR 7.58 crore for AT&S, INR 3 crore for Shogini and INR 2.40 crore for Alcon Electronics

Earlier, the government released incentives for another Apple contract manufacturer—Foxconn

The overall financial outlay for the PLI scheme has been reduced to INR 38,601 crore over five years from the original Rs 40,951 crore

The Indian government has cleared a new phase of financial incentives amounting to INR 765 crore, under the Production-Linked Incentive (PLI) scheme for large-scale electronics manufacturing, according to data provided by industry body India Cellular and Electronics Association (ICEA).

The bulk of the contract is being given to Apple Inc’s contract manufacturer Wistron. According to data, the government will release financial incentives worth INR 601.93 crore to Wistron, followed by INR 149.63 crore for Indian contract manufacturer Padget (Dixon Technologies). Additionally, the government also allocated INR 7.58 crore for AT&S, INR 3 crore for Shogini and INR 2.40 crore for Alcon Electronics, as a part of the incentive scheme. 

Earlier, the government has released incentives for another Apple contract manufacturer—Foxconn.  The PLI scheme offers graded cashback incentives based on incremental sales, with 6% for the first two years, 5% for the third and fourth years, and 4% for the fifth year. 

The overall financial outlay for the PLI scheme has been reduced to INR 38,601 crore over five years from the original Rs 40,951 crore, partially due to Pegatron, another Apple contract manufacturer, claiming incentives for only four years of the scheme tenure. Pegatron will become eligible to claim benefits next fiscal year after starting manufacturing on April 1 last year.

Source: Economic Times

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