The Ministry of Electronics and Information Technology has, through a Gazette Notification dated 3rd March, 2021, notified the Production Linked Incentive Scheme (PLI) for IT Hardware with an objective to propose a financial incentive to boost domestic manufacturing and attract large investments in the value chain.
Key Highlights:
- Quantum of Incentive: The Scheme shall extend an incentive of 4% to 2% / 1% on net incremental sales (over base year) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of four (4) years.
- Target Segment: The Target Segment under PLI shall include (i) Laptops (ii) Tablets (iii) All-in One PCs and (iv) Servers
- Eligibility: Eligibility shall be subject to thresholds of incremental investment and net incremental sales of manufactured goods (covered under the target segment). An applicant must meet all the threshold conditions as mentioned under the Notification to be eligible for disbursement of incentive. The number of applications allowed per applicant for support under the Scheme shall be restricted to one (1).
- Tenure of the Scheme: Support under the Scheme shall be provided for a period of four (4) years. The Scheme shall be open for applications till March 31, 2021 initially which may be extended and may also be reopened for applications anytime during its tenure based on response from the industry. For applications received post the initial application period, applicants shall only be eligible for incentives for the remainder of the Scheme’s tenure.
- Base Year: Financial Year 2019-20 shall be treated as the base year for computation of net incremental sales of manufactured goods.
- Application Approval and Disbursement Process: An initial application, complete in all aspects, will have to be submitted before the due date to the Project Management Agency. Then, Acknowledgement will be issued by the Project Management Agency after initial scrutiny of the application and eligible applications will be recommended for approval of the Minister-in-Charge. Consequently, the claims for release of incentives, as examined and recommended by the Project Management Agency, will be considered for disbursement and incentive shall be released to eligible applicants who are meeting the required thresholds and whose disbursement claims are found to be in order. The detailed procedure for approval and disbursal will be provided as part of Scheme Guidelines.
Source: Ministry of Electronics and Information Technology
