The government on Wednesday informed Parliament that the production-linked incentive (PLI) scheme for large-scale electronics manufacturing is expected to achieve a production target of Rs 8.12 trillion in the next five years.
The cumulative investments under the scheme have increased to Rs 5,124 crore as of December 2022, from the earlier FY23 target of Rs 3,726 crore. The scheme is expected to bring a total cumulative investment of Rs 7,000 crore in a five-year period.
Of the five-year production target of Rs 812,550 crore, around 60 per cent is expected to be contributed by export orders worth Rs 487,530 crore. The data shows that 91 per cent cumulative production target of Rs 263,086 crore for the current fiscal has been met. Ninety per cent of the export target from the scheme has been accomplished with Rs 103,539 crore in exports till December.
However, in terms of job creation, the scheme could hover around the halfway mark, reaching 56 per cent of the cumulative target by December. Companies have reported creation of 52,509 jobs out of a cumulative target of 93,009 in the current fiscal. The government had set a goal of two lakh jobs.
The Centre has approved 32 applicants under the PLI scheme for large-scale electronics manufacturing till December 2022, Minister of State for Electronics and Information Technology Rajeev Chandrasekhar said in a written submission in the Lok Sabha.
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Sixteen companies were approved in the first round — 10 for mobile phones and six for specified electronic components manufacturing. In the second round, 16 companies have been approved for producing specified electronic components.
The PLI scheme for large-scale electronics manufacturing extends to eligible firms incentives of 4-6 per cent on incremental sales of goods manufactured in India and covered under the target segments of mobile phones and specified electronic components for a period of five years.
The second round of this PLI scheme was launched in March 2021; it offered incentives of 3-5 per cent on incremental sales of goods manufactured in India.
“It is a success in terms of interest received from global and domestic mobile manufacturing companies. Sixteen companies have been approved under the first round of the PLI scheme for large-scale electronics manufacturing,” the minister said.
