PLI Scheme Needs to Be Re-Looked At: Report

Samsung, HP, Dell, Wistron and Foxconn have recently come out and called for targets in the upcoming production-linked incentive (PLI) scheme for hardware to either be revised or for the timeline to be extended.

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These companies, by reaching out to the ministry of electronics and IT via separate meeting, said that without these proposed changes, applicants might be discouraged from taking up the scheme and investing in India.

They also mentioned that the changes are required to avoid a situation that the mobile phone manufacturers saw, with only one of the 16 handset companies reaching their target for FY21 despite timely investments.

The companies lay emphasis on how the government must keep in mind the global supply chain issues and the coronavirus situation in India before setting output timelines that are a bit too ambitious for devices like laptops and tablets.

What More Is Mentioned?

As per a statement by Nitin Kunkolienker, president of the Manufacturers’ Association for IT, PIL was conceptualised in a pre-Covid era, but there is a need to relook at the scheme, with the targets being either revised or a provision of five years, rather than the previously set four years to qualify for incentives.

He also mentioned that the scheme is a two-way partnership between the government and the industry, with the government being a larger beneficiary with 60% of the gain by way of tax and non-tax revenue, economic activity, employment and way of foreign exchange.