May 15, 2021

Meity extends deadline for IT {hardware} PLI utility until April 30

The Electronics and IT ministry has prolonged the appliance window for the IT {hardware} production-linked incentive (PLI) scheme until April 30. The scheme with an outlay of Rs 7,350 crore will present an incentive for producers of laptops, tablets, all-in-one PCs and servers.

“PLI scheme was open for receiving purposes until March 31, 2021, which has been prolonged to April 30, 2021, with the approval of competent authority,” the ministry of electronics and IT stated within the scheme guideline issued on Thursday.

The newest IT {hardware} scheme affords incentives between 4-1 per cent on internet incremental gross sales (over the base yr 2019-20) of products manufactured in India and lined underneath the goal phase to eligible firms for a interval of 4 years.

The federal government estimates manufacturing value Rs 3.26 lakh crore and exports of Rs 2.45 lakh crore over the subsequent 4 years underneath the scheme, which is anticipated to create 1.80 lakh jobs.

The scheme is anticipated to usher further funding in electronics manufacturing to the tune of Rs 2,700 crore.

Home worth addition for IT {hardware} is anticipated to rise to 20-25 per cent by 2025 from the present 5-10 per cent as a result of impetus offered by the scheme.

“For the aim of figuring out the eligibility of an applicant with respect to internet incremental gross sales of manufactured items for any yr, the web incremental gross sales of manufactured items (lined underneath the goal phase) for such yr over the bottom yr regardless of the bill worth shall be thought of,” the rules stated.

An empowered group of secretaries, headed by the Cupboard Secretary, will monitor the scheme and undertake a interval evaluate of the outgo underneath the scheme.

“The EGoS might revise incentive charges, ceilings, goal phase(s) and eligibility standards as deemed acceptable in the course of the tenure of the scheme,” the rules stated.

IT {hardware} firms having a turnover of over Rs 5,000 crore within the manufacturing of laptops, tablets, all-in-one PCs or servers or greater than Rs 10,000 crore for electronics {hardware} merchandise or sub-assemblies or parts within the base yr are eligible to use for the scheme.

Within the case of home firms, the turnover must be over Rs 10 crore within the goal product phase or over Rs 20 crore for electronics {hardware} or sub-assemblies or parts, in accordance with the rule of thumb.