AI SummaryProduction Linked Incentive (PLI) Scheme 2.0 for IT Hardware gives cash incentives to companies that manufacture laptops, tablets, all-in-one PCs, servers, and ultra small form factor devices in India. Union Cabinet cleared this revised scheme on 17 May 2023 with an outlay of ₹17,000 crore.
MeitY runs this central scheme for a tenure of 6 years. It expects incremental production of ₹3.35 lakh crore, extra investment of ₹2,430 crore, and around 75,000 new direct jobs. IFCI works as the Project Management Agency (PMA) for the scheme.
Earlier, Government of India started the first PLI for IT Hardware in March 2021 with an outlay of ₹7,350 crore. The 2.0 version replaced it after industry feedback. It now covers a wider product list and gives incentives for a longer period.
Under PLI 2.0, the average incentive works out to around 5% on net incremental sales over the base year. 27 manufacturers got approval on 18 November 2023. Of these, 6 are greenfield companies and 21 are brownfield companies. Brands like Dell, HP, Lenovo, Acer, Asus, Foxconn, and VVDN are part of the approved list.
Production Linked Incentive Scheme 2.0 for IT Hardware - Overview
The scheme helps companies set up or expand IT hardware manufacturing in India. It rewards them for goods made and sold in India above the base year sales. Ultra small form factor devices are a new addition in the 2.0 version.
Highlights
| Detail | Information |
|---|---|
| Scheme Name | Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware |
| Ministry | Ministry of Electronics and Information Technology (MeitY) |
| Approved On | 17 May 2023 |
| Budget Outlay | ₹17,000 crore |
| Tenure | 6 years |
| Target Products | Laptops, Tablets, All-in-One PCs, Servers, Ultra Small Form Factor |
| Incentive | Average of about 5% on net incremental sales |
| Approved Companies | 27 (6 greenfield and 21 brownfield) |
| Project Management Agency | IFCI |
Benefits
The scheme gives these benefits to approved manufacturers:
- Cash incentive: Companies get an average incentive of about 5% on net incremental sales over the base year for goods made in India.
- Longer support: Incentive support runs for 6 years, which gives time to build the supply chain and scale production.
- Wider product cover: Ultra small form factor devices are included along with laptops, tablets, all-in-one PCs, and servers.
Eligibility
Companies need to meet these conditions to take part in the scheme:
- The company must be legally registered in India and make the products covered under the target segment.
- The firm must meet the investment and net incremental sales thresholds set in the scheme rules.
- Global, hybrid, and domestic companies can apply under their respective categories.
- The company must follow all scheme rules and file claims with correct production and sales data.
Application Process
The application round for PLI 2.0 closed in 2023, after which 27 companies were approved. If MeitY opens a new round, eligible companies will follow these steps through the official portal:
STEP 1 - Go to the official MeitY PLI 2.0 scheme page and read the full scheme rules and guidelines.
STEP 2 - Register on the scheme portal with company credentials and create an account.
STEP 3 - Fill the application form with investment, production, and financial details for the base year and proposed period.
STEP 4 - Upload the required documents such as incorporation proof, audited financial statements, and production records.
STEP 5 - Submit the form. Project Management Agency (IFCI) reviews the application and informs the company about approval.
STEP 6 - After approval, start production and file yearly claims for incentives based on net incremental sales.
Documents
Companies should keep these documents ready while applying:
- Certificate of Incorporation and statutory registration copies
- Audited financial statements showing investment capacity
- Production and sales records for the base year
- Bank account details for incentive payment
- Declaration and undertaking of compliance with scheme rules
References
For official details, use these government sources:
MeitY PLI 2.0 for IT Hardware Scheme Details
PIB Press Release on PLI Scheme 2.0 for IT Hardware
PLI Scheme 2.0 for IT Hardware Guidelines PDF
List of Companies Approved Under PLI 2.0 PDF
FAQ's
What is PLI Scheme 2.0 for IT Hardware?
It is a revised production linked incentive scheme that pays companies for making laptops, tablets, all-in-one PCs, servers, and ultra small form factor devices in India. Cabinet approved it on 17 May 2023 with ₹17,000 crore outlay.
How is it different from the earlier PLI for IT Hardware?
The earlier scheme from March 2021 had ₹7,350 crore outlay and a 4 year tenure. PLI 2.0 has ₹17,000 crore, a 6 year tenure, and adds ultra small form factor devices to the product list.
Which products are covered?
Laptops, tablets, all-in-one PCs, servers, and ultra small form factor devices are covered.
How much incentive does a company get?
The average incentive is around 5% on net incremental sales over the base year, and the exact rate varies by company category.
How many companies are approved?
27 manufacturers were approved on 18 November 2023. This includes 6 greenfield and 21 brownfield companies.
Who manages the scheme?
Ministry of Electronics and Information Technology (MeitY) runs the scheme, and IFCI acts as the Project Management Agency.