30 out of 40 applicants to qualify for Rs 17K crore PLI for IT hardware

As many as 40 companies, including Dell, HP, and Lenovo, have applied for the IT hardware PLI (production linked incentive) scheme. Out of which 30 applicants are expected to qualify for Rs 17,000-crore production linked incentive scheme for IT hardware.

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It is foreseen that roughly 30 of the 40 applicants will satisfy the eligibility requirements for the Rs 17,000-crore production-linked incentive scheme aimed at the IT hardware sector. A total of 40 companies, among them industry giants like Dell, HP, and Lenovo, have submitted their applications for participation in the IT hardware PLI scheme. These companies have pledged to manufacture personal computers, laptops, tablets, servers, and various related equipment with a combined value of Rs 4.65 lakh crore over the course of the scheme’s duration.

An anonymous government official has suggested that approximately 30 to 32 companies are likely to meet the criteria for the IT hardware Production Linked Incentive (PLI) scheme. Some applicants, however, are facing potential disqualification due to financial issues and organizational structural concerns.

Despite a budgetary allocation of Rs 17,000 crore for the scheme, the applicants have projected incentives amounting to a more substantial Rs 22,890 crore. The official has assured that the selected companies will receive incentives that remain within the designated fund for the scheme.

Prominent IT hardware corporations like Dell and HP have chosen to directly participate in the program. On the other hand, significant players such as HPE, Lenovo, Acer, ASUS, and Thomson have opted for participation through Electronic Manufacturing Service (EMS) companies that possess manufacturing facilities in India, such as Flextronics and Rising Star.

In addition to these notable participants, Foxconn, a key supplier to Apple, has also submitted an application for incentives, utilizing one of its subsidiary entities. Meanwhile, several domestic enterprises, including Padget (Dixon), VVDN, Netweb, Syrma, Optiemus, Sahasra, Neolync, Panache, Sojo (Lava), and Kaynes Technologies, have eagerly applied for inclusion in the scheme.

The scheme is anticipated to have a significant impact on job creation, potentially leading to the direct employment of approximately 75,000 professionals in the electronic manufacturing sector. Furthermore, it is expected to attract an additional investment of Rs 5,000 crore into the industry.

The official overseeing the scheme has indicated that the list of eligible companies is likely to be unveiled either by the end of September or in the early days of October.