Govt to approve investment proposals worth INR 4K crore under IT PLI

In the previous month, the Ministry of Electronics and Information Technology (IT) received 40 proposals under the IT Hardware Production Linked Incentive (PLI) 2.0 scheme

September 15, 2023

Earlier, the government has allocated INR 17,000 crore for incentives

The six-year PLI scheme for IT hardware aims to attract leading hardware companies

PLI Scheme 2.0 for IT hardware was approved in May 2023

The government has received three proposals for semiconductor fabs and two proposals for semiconductor display manufacturing units

India is considering the approval of investment proposals totalling INR 4,000 crore under the revised IT hardware Production Linked Incentive (PLI) scheme by the Centre, according to media reports.

The previous month, the Ministry of Electronics and IT received 40 proposals amounting to INR 5,000 crore under the IT Hardware PLI 2.0 scheme. However, not all of these proposals will likely receive approval due to budget constraints, as the government has allocated INR 17,000 crore for incentives. In comparison, the total required funding for all proposals is INR 23,000 crore.

The six-year PLI scheme for IT hardware, which covers laptops, tablets, all-in-one personal computers, servers, and ultra-small form factor devices, aims to attract leading hardware companies. PLI Scheme 2.0 for IT hardware was approved in May of the current year, following the issuance of PLI 1.0 in 2021 with a budget of INR 7,350 crore.

Regarding proposals for semiconductor manufacturing units, experts stated that many companies will come directly, and India is expected to witness more joint ventures.

The government has received three proposals for semiconductor fabs and two for semiconductor display manufacturing units. In the initial round, these proposals were not approved due to non-compliance with conditions, but the applicants have since submitted revised proposals.

The experts believe that a win-win situation can be created, where Indian companies can offer value to global companies, and in return, international companies will see value in supporting Indian enterprises.

Source: Economic Times

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