Fresh investment clause in revised PLI scheme irks IT hardware majors

New Delhi, Mar 16 (KNN) The central government has been requested by IT hardware companies such as Foxconn, HP and Dixon Technologies to drop the fresh investment clause proposed in the revised production-linked incentive (PLI) scheme.

They reasoned that most manufacturers have slack capacities that first need to be used up before committing to expansion at a time when global PC and tablet sales have been steadily declining, reported ET.

However, officials of the Ministry of Electronics and Information Technology (MeitY) had insisted on including the investment clause during a meeting held earlier this month.

They said to keep it in line with PLI schemes in other categories, reported ET.

People in know how told ET that they sought assurances from the industry to meet the proposed targets.

Attendees included Foxconn unit Rising Star (Bharat FIH), HP, Dixon Technologies, Infopower Technologies, Bhagwati Products (Micromax), the Manufacturers Association of Information Technology (MAIT), and the India Cellular and Electronics Association (ICEA).

During the meeting the industry urged to delink investments from incentives.  (KNN Bureau)