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Under the production-linked incentive (PLI) scheme for mobile manufacturers, the much-delayed incentives are all set to be released soon.
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Under the production-linked incentive (PLI) scheme for mobile manufacturers, the much-delayed incentives are all set to be released soon. This comes in as a major relief for firms like Samsung and Dixon Technologies. The meeting is scheduled for September 9th for the final decision on the submissions of the selected companies, as per officials.
“So far Indian contract manufacturer Dixon and Korean major Samsung have submitted the paperwork around production targets while others including Apple contract manufacturers Hon Hai (Foxconn) and Wistron are in the process,” stated the officials in the Ministry of Electronics and IT (Meity).
Industry experts suggest that the major reason for the delay in the disbursing of incentives factory price determination of the phones manufactured under the scheme, specifically for smartphone brands that are doing their own manufacturing.
Although the calculation of the total value of smartphones manufactured is done through prices, when it comes to a brand doing its own manufacturing, the final price includes the branding costs, marketing costs, and operational costs, amongst others.
For the contract manufacturers, on the other hand, like Dixon, it will only be the costs incurred to manufacture. As per the incentive outlay, the government will be giving out cash backs of ₹900 crore in 2021-22 and ₹4,578 crore in 2022-23.