Mobile Manufacturing in India: 10 Beneficiaries Get Incentive Under PLI Scheme

September 22, 2022 Posted by India Briefing Written by Naina Bhardwaj Reading Time: 2 minutes

India recently approved disbursal of incentives under the PLI Scheme for Large-Scale Electronics Manufacturing for 10 mobile manufacturing beneficiaries, including Dixon Technologies, Samsung, Foxtron, etc.

On September 9, 2022, the Empowered Committee, led by Niti Aayog CEO, approved the first-ever disbursement of incentive under the Production-Linked Incentive (PLI) schemes. This incentive was disbursed to 10 mobile manufacturing beneficiaries under the ‘Large-Scale Electronics Manufacturing’ sector.

The PLI scheme is implemented by the Ministry of Electronics and Information Technology (MEITY) and has an outlay of INR 386.01 billion. Its objective is to make India a manufacturing hub for electronics, including mobile phones, specified electronic components, and discrete semiconductor devices like transistors, diodes, thyristors, etc. The scheme offers graded incentives in the form of cashback at six percent of incremental sales of goods for each of the first two years, five percent for the third and fourth years, and four percent for the fifth year.

Mobile manufacturing beneficiaries under the PLI scheme

It must be noted that by April 2022, a total of 32 beneficiaries had been approved under the PLI Scheme for Large-Scale Electronics Manufacturing, of which 10 (five global and five domestic companies) were approved for mobile manufacturing. This incentive disbursement, which is the first-ever for any PLI scheme among all 14 sectors, is directed towards the approved 10 mobile manufacturers.

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Padget Electronics, a domestic company, is the first beneficiary approved by the Empowered Committee to receive the stipulated incentive under mobile manufacturing based on its incremental investment and sales figures for FY 2021–22. Padget Electronics is a 100 percent subsidiary of Dixon Technologies and has manufacturing facilities in Noida, Uttar Pradesh. Other beneficiaries which have been approved to receive the incentive include Wistron, Foxconn, Pegatron, Samsung etc.

List of 32 Companies Approved under PLI Scheme for Large Scale Electronics Manufacturing
Round I	Round II
Wistron Infocomm Manufacturing (India)	TDK India
Foxconn Hon Hai Technology India Mega Development	Epitome Components
Pegatron Technology India	Tibrewala Electronics
Samsung India Electronics	Shogini Technoarts
Rising Stars Mobile India	Vishay Components India
Bhagwati Products	Globe Capacitors
Optiemus Electronics	Rakon India
Padget Electronics	Deki Electronics
LAVA International	Shivalik Bimetal Controls
United Telelinks Neolyncs	Cipsa Tec India
AT & S India	Desai Electronics
Ascent Circuits	Alcon Electronics
Sahasra Semiconductors	Keltron Component Complex
Visicon Power Electronics	Micropack
Walsin Electronics India	Continental Device India
Neolync India	Vitesco Technologies India

Who are in the empowered committee?

The PLI Scheme for Large-Scale Electronics Manufacturing provides that an Empowered Committee must be formed for the purpose of considering applications made under the scheme, as well as grant approval if found eligible by the Project Management Agency.

The Committee includes:

CEO, NITI Aayog – Parameswaran Iyer
Secretary, Economic Affairs
Secretary, Expenditure
Secretary, MEITY
Secretary, Revenue
Secretary, Department for Promotion of Industry and Internal Trade (DPIIT) – Anurag Jain
Secretary, Director General of Foreign Trade (DGFT) – Alkesh Kumar Sharma

The Empowered Committee is also responsible for disbursement of incentives under the scheme as per the laid down procedure.

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