PLI 2.0 IT Hardware: 40 Indian, Foreign Firms Commit Rs 4.65 Lakh Crore Worth Of Production Under Incentive Scheme

The PLI scheme for making PCs, laptops, tablets, servers, and other equipment was launched in May with a budgetary allocation of Rs 17,000 crore

A total of 40 firms applying for the PLI 2.0 scheme for IT hardware have committed to producing goods worth Rs 4.65 lakh crore during the scheme period, reported PTI on Thursday citing an official statement. The firms applying for the scheme include the likes of Dell, HP, Lenovo, and Foxconn among others. The production-linked incentive (PLI) scheme for making PCs, laptops, tablets, servers, and other equipment was launched in May with a budgetary allocation of Rs 17,000 crore.

However, it has been oversubscribed to the tune of Rs 22,890 crore, said the statement, pushing the production figure projected from the target of 3.35 lakh crore to Rs 4.65 Lakh crore.

"Total 40 applications have been submitted till the closure of the window on August 30. The scheme has been oversubscribed. Against The budgetary allocation of Rs 7,000 crore, applicants have projected PLI amount to the tune of 22,890 crore. Further, the production figure projected by these applicants is Rs 4.65 Lakh crore against the target of 3.35 lakh crore," the statement said, as per the report. 

Among the 40 applicants of the PLI 2.0, 13 falling into the hybrid category, consisting of 7 global and 6 domestic firms. Additionally, there are 27 applicants in the domestic category. Major IT hardware companies like Dell and HP are participating directly in the programme, while other significant players such as HPE, Lenovo, Acer, ASUS, and Thomson are taking part through Electronic Manufacturing Service (EMS) companies with manufacturing facilities in India, such as Flextronics and Rising Star.

Apple's supplier, Foxconn, has also submitted an application for incentives through one of its subsidiaries. Among the domestic firms applying for the scheme are Padget (Dixon), VVDN, Netweb, Syrma, Optiemus, Sahasra, Neolync, Panache, Sojo (Lava), and Kaynes Technologies.

MoS IT Rajeev Chandrashekhar on Thursday said that this initiative is expected to generate direct employment to 75,000 professionals in electronic manufacturing and draw incremental investment of Rs 5000 crore.

"After smartphone success, PLI2.0 for IT Hardware will act as a catalyst for PM Narendra Modi's vision of $300 billion electronics mfg by encouraging companies to manufacture IT Hardware (servers & laptops) in New India and export them from here," Chandrashekhar tweeted.