Government Approves 10 Companies for Mobile Phone PLI Scheme
The Central government today cleared 10 mobile manufacturing companies under its Production Linked Incentive Scheme (PLI) scheme to increase large-scale electronics manufacturing in the country as a part of its Atmanirbhar Bharat initiative.
In addition, it has also given approval to six other qualified applicants under the scheme. According to the PLI scheme, as intimated on 1 April, eligible companies that manufacture goods under target segments in India will receive an incentive of 4% to 6% on incremental sales (over base year) for a period of five years subsequent to the starting year (FY2019-20).
During the press conference, Union Minister for Electronics & IT, Communications, Law and Justice, Ravi Shankar Prasad said that the PLI scheme has been a great success in respect of the requests received from global as well as local mobile phone manufacturing companies and electronic items manufacturers.
Prasad further said, “We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening electronics manufacturing ecosystem in the country”.
Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron are among the international mobile phone manufacturing companies that are approved by the government. 3 of the companies namely Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. Apple (37%) and Samsung (22%) contribute to nearly 60% of global sales revenue of mobile phones and this scheme is likely to boost their manufacturing base greatly in the country. The net price of phones produced by these companies is to be Rs. 15,000 and above, as earlier informed by the government.
The government has approved Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics, as part of domestic phone manufacturing companies. These companies are likely to increase their manufacturing operations in an optimum manner and turn into national prominent companies in mobile phone production.
Apart from these, six local companies are also permitted under the Specified Electronic Components segment which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync, stated the Ministry of Electronics and IT.
In the next 5 years, government expects these approved companies under the PLI scheme to reach to total production of more than Rs. 10,50,000 crore. Out of the total production, the approved companies under Mobile Phone (Invoice Value ₹15,000 and above) segment have proposed a production of over ₹9 lakh crore.
