The Ministry of Electronics and Information Technology (MeitY) is in the process of evaluating a proposal to introduce an independent Production-Linked Incentive (PLI) scheme specifically tailored for electronics component manufacturing, according to sources familiar with the situation. It is anticipated that the ministry will engage in discussions regarding this proposal with the Ministry of Commerce and Industry, as well as NITI Aayog, to explore the potential and framework of the scheme.

The necessity for a distinct PLI aimed at promoting local manufacturing of electronics components has arisen from extensive deliberations between the government and industry stakeholders. Various entities, including Dixon Technologies, have urged the government to establish a separate PLI scheme for electronics components, distinct from the existing scheme for the promotion of manufacturing electronic components and semiconductors (SPECS). The objective is to enable India to achieve self-reliance across the entire electronics ecosystem value chain, as stated by government officials.

Industry representatives have emphasised that an independent PLI scheme would address the concern related to the government's 'one size fits all' approach. Currently, the SPECS scheme encompasses all capital goods, active and passive electronic components like resistors, capacitors, ferrites, diodes, as well as semiconductor wafers and integrated chips (ICs), bundled together. The existing scheme provides a financial incentive of 25% of the capital expenditure for the manufacturing of these goods.

Source: The Financial Express