The government on Tuesday said it has cleared 16 proposals from domestic and international companies entailing investment of Rs 11,000 crore under the production linked incentive (PLI) scheme to boost large-scale electronics manufacturing in the country as a part of the its Atmanirbhar Bharat initiative.
The approved companies under the PLI Scheme are expected to lead to total production of more than Rs 10.5 lakh crore, over the next 5 years.
The international mobile phone manufacturing companies that are approved under mobile phone segment include iPhone maker Apple's contract manufacturers Foxconn Hon Hai, Wistron and Pegatron, apart from Samsung and Rising Star.
Apple (37 per cent) and Samsung (22 per cent) together account for nearly 60 per cent of global sales revenue of mobile phones and this Scheme is expected to increase their manufacturing base manifold in the country, a government release said.
Domestic companies whose proposals have been approved include Lava, Bhagwati (Micromax), Padget Electronics (Dixon Technologies), UTL Neolyncs and Optiemus.
The Ministry of Electronics and Information and Technology (MeitY), in a statement, said the companies approved under the scheme will generate more than 2 lakh direct jobs in the next five years, along with indirect employment of nearly three times the direct employment opportunities.
"The companies approved under the scheme will bring additional investment in electronics manufacturing to the tune of INR 11,000 crore," MeitY said.
The Production Linked Incentive Scheme for Large Scale Electronics Manufacturing was notified on April 1, 2020.
It extends an incentive of 4 to 6 per cent on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year (2019-20).
Proposals of six companies in the electronic components segment have also been approved. These companies are AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync.
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