Lok Sabha Question No. 4636 (UNSTARRED), answered on 2023-03-29
Subject: Scheme for Large Scale of Electronic Manufacturing
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Supriya Sadanand Sule

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 4636

TO BE ANSWERED ON: 29.03.2023

## SCHEME FOR LARGE SCALE OF ELECTRONIC  MANUFACTURING

## 4636.  SHRIMATI SUPRIYA SULE:

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

- (a) whether the Government has achieved aims and objectives of launching Production Linked Incentive (PLI) Scheme for large scale electronics manufacturing and if so, the details thereof;
- (b) the total number of companies that have applied for availing benefit under the   PLI Scheme for large scale electronics manufacturing in the State of Maharashtra from the start  of  the  scheme  till  now  including  the    number  of  companies  cleared  under different categories;
- (c) whether the Government is planning to seek application under PLI Scheme specially directed to attract electronics manufacturers; and
- (d) if so, the details thereof along with the quantum of SOPs to be given and number of companies likely to get approval?

## ANSWER

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

(a): Yes, Sir. Government of India's goal is to broaden and deepen the country's electronic manufacturing ecosystem. The objective of the Production Linked  Incentive (PLI) Scheme for Large Scale Electronics Manufacturing (LSEM) is to boost mobile phone manufacturing including specified electronics components in the country and incentivize large investments in the mobile phone value chain as well as promote exports.

Till December 2022, the achievement made under the PLI Scheme for LSEM is as under:

| Category                 | Projected for 5 Years   | Target FY 2022-23 (Cumulative)   | Actual Reported (Cumulative) till Dec 2022   |
|--------------------------|-------------------------|----------------------------------|----------------------------------------------|
| 7,000                    | 3726                    | 5,124 (138%)                     | Investment (INR Crore)                       |
| 8,12,550                 | 2,63,086                | 2,39,609 (91%)                   | Production (INR Crore)                       |
| 4,87,530                 | 1,57,851                | 103,539 (90%)                    | Exports (INR Crore)                          |
| Employment (Direct Jobs) | 2,00,000                | 93,009 52,509 (56%)              |                                              |

(b):    32  applicants  are  approved  under  the  PLI  Scheme  for  LSEM.  16  companies  were approved  in  Round1  (10  companies  for  Mobile  Phone  and  6  companies  for  Specified

Electronic  Components),  and  16  companies  were  approved  in  Round  2  for  Specified Electronic Components.

Out of 32applicants,7 applicants have reported manufacturing facility in the state of Maharashtra, the details (including category) of which are as follows:

|   S.No. | Name of Applicant                          | Category                                  |
|---------|--------------------------------------------|-------------------------------------------|
|       1 | Desai Electronics Private Limited          | Specified Electronic Components (Round 2) |
|       2 | Epitome Components Private Limited         | Specified Electronic Components(Round 2)  |
|       3 | Shogini Technoarts Private Limited         | Specified Electronic Components(Round 2)  |
|       4 | TDK India Private Limited                  | Specified Electronic Components(Round 2)  |
|       5 | Vishay Components India Private Limited    | Specified Electronic Components(Round 2)  |
|       6 | Vitesco Technologies India Private Limited | Specified Electronic Components(Round 2)  |
|       7 | Alcon Electronics Private Limited          | Specified Electronic Components(Round 2)  |

(c) and (d): The PLI Scheme for LSEM extends an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments viz.  Mobile  Phones  and  specified  Electronic  Components,  to  eligible  companies,  for  a period of 5 years. It is a success in terms of interest received from Global and Domestic Mobile Manufacturing companies. 16 companies have been approved under the first round of  PLI  Scheme  for  Large  Scale  Electronics  Manufacturing.  Over  the  tenure  of  PLI Scheme, the 16 approved companies are expected to lead to total production of more than INR 8,12,550 crore. Out of the total production of INR 8,12,550 crore in the next 5 years, around 60% is expected to be contributed by exports of the order of INR 4,87,530 crore. The companies approved under the scheme is expected to bring an additional investment in electronics manufacturing to the tune of INR 7,000 crore.

After the success of the First Round of PLI Scheme in attracting investments in mobile phone and electronic  components manufacturing, Second Round of the PLI Scheme for Large  Scale  Electronics  Manufacturing  was  launched  on  11.03.2021  for  incentivising Electronic  Components.  Under  the  Second  Round,  incentives  of  5%  to  3%  shall  be extended on incremental sales (over base year i.e., FY 2019-20) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of four (4) years. The Scheme was open for receiving applications till 31.03.2021 under the Second Round.  16  companies  have  been  approved  under  the  second  round  of  PLI  Scheme  for Large Scale Electronics Manufacturing.

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