Dixon Technologies arm to receive Rs 53 cr under PLI scheme for electronics

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Dixon Technologies arm to receive Rs 53 cr under PLI scheme for electronics

Dixon Technologies arm to receive Rs 53 cr under PLI scheme for electronics

Industry News
Sep 12,22

The Empowered Committee (EC) has approved the first disbursement of Rs 53.28 crore under PLI (Production Linked Incentive) Scheme for Large Scale Electronics Manufacturing to Padget Electronics Pvt Ltd - a 100% subsidiary of Dixon Technologies India Pvt Ltd

Dixon Technologies arm to receive Rs 53 cr under PLI scheme for electronics

New Delhi

Padget Electronics Pvt Ltd – the wholly-owned subsidiary of Dixon Technologies India Pvt Ltd - has become the first firm to receive disbursement amount under the PLI (Production Linked Incentive) Scheme for Large Scale Electronics Manufacturing from the Union Government of India. The Empowered Committee (EC) in its meeting on September 9, 2022, approved first disbursement of Rs 53.28 crore under PLI Scheme for Large Scale Electronics Manufacturing to Padget Electronics Pvt Ltd as recommended by Project Management Agency, i.e. IFCI Ltd.

The Ministry of Electronics and Information Technology (MEITY) is pursuing with other eligible applicants of the scheme for filing their disbursement claims for the year 2021-22. PLI Scheme for large scale electronics has emerged as the most successful scheme. As of June 2022, the scheme has led to total production of more than Rs 167,770 crore including exports of Rs 65,240 crore. PLI Scheme has also generated employment of 28,636. Over the last 3 years, exports of smart phones have grown by 139%.

“Production Linked Incentive (PLI) Schemes are a cornerstone of the Government’s push for accomplishing the vision of Atmanirbhar Bharat. The objective is to make domestic manufacturing globally competitive and to create domestic Champions in manufacturing. The strategy behind scheme is to offer financial incentive to boost electronics manufacturing and attract large scale investments,” said a PIB press release.

PLI Scheme for Large Scale Electronics Manufacturing was notified on April 1, 2020. This scheme extends an incentive of 4% to 6% on net incremental sale of manufactured goods covered under the ‘Target Segment’ including mobile phones and specified electronic components.

The total outlay under the Scheme is Rs 38,645 crore. Sixteen companies (five global companies under category Mobile Phone with invoice value Rs 15,000 and above), five domestic companies and six companies under Specified Electronic Components were approved under the scheme.

After the success of the first round of PLI Scheme, second round of the PLI Scheme with the target segment of Specified Electronic Components was opened until March 31, 2021, incentivising 5% to 3% on incremental sales to eligible companies, for a period of four (4) years. Sixteen companies were approved by the Competent Authority under the Second Round of PLI Scheme.

The tenure of the PLI Scheme has been extended by one year i.e. from 2024-25 to 2025-26. The notification in this regard was issued on September 23, 2021. Out of total 16 companies, 15 companies opted for extension.

It is expected that the electronics manufacturing will rise to $ 300 billion by 2025-26. Schemes like PLI will make India a competitive destination for electronics manufacturing and create more domestic champions apart from giving boost to Atmanirbhar Bharat.