Lok Sabha Question No. 1673 (UNSTARRED), answered on 2021-12-08
Subject: Production Linked Incentive
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Srinivas Kesineni

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED  QUESTION NO. 1673

TO BE ANSWERED ON 08.12.2021

## PRODUCTION LINKED INCENTIVE

## 1673. SHRI KESINENI SRINIVAS:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:

(a):  whether  the  Government  is  considering  to  shift  the  base  year  of  2019-2020  provided  under  the  production  linked incentive scheme for large scale electronics manufacturing, in view of the Covid-19 induced pandemic situation across the country in the year 2020-2021 if so, the details thereof;

(b):  whether the Government can provide the details of the firms benefitting from this scheme, and if so, the detail of numbers of state-wise distribution of these firms; and

(c): whether the Government can furnish the details of the total amount allocated towards the scheme versus disbursed to these firms for achieving targets under the scheme for the year 2020-2021; and if so, the details of the company wise benefits provided?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAJEEV CHANDRASEKHAR)

(a):  In the post COVID-19 global business and trade environment, there are many changes that represent challenges and opportunities for India. Global companies are looking to diversify their manufacturing locations to mitigate the supply chain risks. To utilize these opportunities and establish India as a global leader in electronics manufacturing, Government of  India  launched  Production  Linked  Incentive  Scheme  (PLI)  for  Large  Scale  Electronics  Manufacturing,  Scheme  for Promotion  of  Manufacturing  of  Electronic  Components  and  Semiconductors  (SPECS) and  Modified  Electronics Manufacturing Clusters (EMC 2.0), which are aimed at 'Atmanirbhar Bharat - A self-reliant India' under the aegis of National Policy on Electronics 2019 (NPE 2019).

Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing was notified on 1st April, 2020. The Scheme extends an incentive of 6% to 4% on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five (5) years subsequent to the base year (FY 2019-20).16 companies have been approved under the first round of PLI Scheme for Large Scale Electronics Manufacturing.

Second round of the PLI Scheme for Large Scale Electronics Manufacturing was launched on 11.03.2021 for incentivising Electronic Components. The second round extends an incentive of 5% to 3% on incremental sales (over base year i.e. 2019-20) for goods manufactured in India and covered under the target segment, to eligible companies, for a period of four  (4)  years.  16  companies  have  been  approved  under  the  second  round  of  PLI  Scheme  for  Large  Scale  Electronics Manufacturing.

In accordance with the announcement made by Hon'ble Union Finance & Corporate Affairs Minister on 28.06.2021 to provide relief to companies approved under the PLI Scheme that were affected by disruption in production activities on account  of  COVID-19  pandemic  related  lockdown,  restrictions  on  movement  of  personnel,  delays  in  installation  of relocated plant and machinery and disruption in supply chain; the tenure of the PLI Scheme for Large Scale Electronics Manufacturing  has  been  extended  by  one  year  i.e.  from  2024-25  to  2025-26  with  the  approval  of  the  Empowered Committee (EC). The notification in this regard was issued on 23.09.2021.However, the base year for the purpose of the

PLI Scheme for Large Scale Electronics Manufacturing remain the same, i.e. FY 2019-20, for computation of incremental investment and incremental sales of manufactured goods.

For the first round of the PLI Scheme for Large Scale Electronics Manufacturing, approved companies were allowed to choose  a  period  of  any  5  consecutive  years  between  FY  2020-21  and  FY  2025-26  to  achieve  threshold  targets  for incremental sales of manufactured goods. Incentives for Year 1 have been made applicable from 01.08.2020 or 01.08.2021 depending on the choice of Year 1 (i.e FY 2020-21 or FY 2021-22). 15 out of 16 approved companies have opted for FY 2021-22 as Year 1.

Similarly,  for  the  second  round  of  the  PLI  Scheme,  companies  approved  under  the  Scheme  were  allowed  to  choose  a period of any 4 consecutive years between FY 2021-22 and FY 2025-26 to achieve threshold targets for incremental sales of manufactured goods. Incentives have been made applicable from 01.04.2021 or 01.04.2022 depending on the choice of Year 1 (i.e FY 2021-22 or FY 2022-23). 9 out of 16 companies have opted for FY 2022-23 as Year 1 and rest of the companies have opted to continue with FY 2021-22 as Year 1.

- (b):   The state-wise list of the companies approved under the PLI Scheme for Large Scale Electronics Manufacturing is annexed.
- (c):        A  total  budget  outlay  of  INR  40,995  crore  has  been  approved  for  the  PLI  Scheme  for  Large  Scale  Electronics Manufacturing. No disbursement has been made under the aforesaid PLI Scheme so far.

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Annexure-1 List of Companies approved under First Round of PLI Scheme for Large Scale Electronics Manufacturing for Mobile

Phones and Specified Electronic Components

|   Sl. No. | Name of the Company                                               | Target Segment        | State                     |
|-----------|-------------------------------------------------------------------|-----------------------|---------------------------|
|         1 | Foxconn Hon Hai Technology India Mega Development Private Limited | Mobile Phones         | Tamil Nadu                |
|         2 | Samsung India Electronics Private Limited                         | Mobile Phones         | Uttar Pradesh             |
|         3 | Pegatron Technology India Private Limited                         | Mobile Phones         | Tamil Nadu                |
|         4 | Rising Stars Mobile India Private Limited                         | Mobile Phones         | Tamil Nadu                |
|         5 | WistronInfocomm Manufacturing (India) Private Limited             | Mobile Phones         | Karnataka                 |
|         6 | LAVA International Limited                                        | Mobile Phones         | Uttar Pradesh             |
|         7 | Bhagwati Products Limited                                         | Mobile Phones         | Rajasthan                 |
|         8 | Padget Electronics Private Limited                                | Mobile Phones         | Uttar Pradesh             |
|         9 | Optiemus Electronics Limited                                      | Mobile Phones         | Uttar Pradesh             |
|        10 | United TelelinksNeolyncs Private Limited                          | Mobile Phones         | Andhra Pradesh            |
|        11 | AT &SIndia Private Limited                                        | Electronic Components | Karnataka                 |
|        12 | Walsin Electronics India Private Limited                          | Electronic Components | Andhra Pradesh (proposed) |
|        13 | Ascent Circuits Private Limited.                                  | Electronic Components | Tamil Nadu                |
|        14 | Neolync India Private Limited                                     | Electronic Components | Andhra Pradesh (proposed) |
|        15 | Sahasra Semiconductors Private Limited                            | Electronic Components | Rajasthan                 |
|        16 | Visicon Power Electronics Private Limited                         | Electronic Components | Gujarat                   |

List of Companies approved under the Second Round of PLI Scheme for Large Scale Electronics Manufacturing for Specified Electronic Components

|   Sl. No. | Name of the Company                        | Target Segment        | State            |
|-----------|--------------------------------------------|-----------------------|------------------|
|         1 | TDK India Private Limited                  | Electronic Components | Maharashtra      |
|         2 | Rakon India Private Limited                | Electronic Components | Karnataka        |
|         3 | Vitesco Technologies India Private Limited | Electronic Components | Maharashtra      |
|         4 | Epitome Components Private Limited         | Electronic Components | Maharashtra      |
|         5 | Vishay Components India Private Limited    | Electronic Components | Maharashtra      |
|         6 | ShoginiTechnoarts Private Limited          | Electronic Components | Maharashtra      |
|         7 | Tibrewala Electronics Limited              | Electronic Components | Telangana        |
|         8 | Globe Capacitors Limited                   | Electronic Components | Haryana          |
|         9 | Shivalik Bimetal Controls Limited          | Electronic Components | Himachal Pradesh |
|        10 | Deki Electronics Limited                   | Electronic Components | Uttar Pradesh    |
|        11 | Cipsa Tec India Private Limited            | Electronic Components | Karnataka        |
|        12 | Keltron Component Complex Limited          | Electronic Components | Kerala           |
|        13 | Alcon Electronics Private Limited          | Electronic Components | Maharashtra      |
|        14 | Micropack Private Limited                  | Electronic Components | Karnataka        |
|        15 | Desai Electronics Private Limited          | Electronic Components | Maharashtra      |
|        16 | Continental Device India Private Limited   | Electronic Components | Punjab           |

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