Production Linked Incentive Scheme (PLI) for IT Hardware Scheme 2.O
State: Central
Ministry: Ministry of Electronics and Information Technology
Department: null
Category: Business & Entrepreneurship, Science, IT & Communications, Skills & Employment
Beneficiary Type: Business Entity

The scheme aims to promote domestic manufacturing of Laptops, Tablets, All-in-One PCs, Servers, and Ultra Small Form Factor (USFF) devices in India through production-linked financial incentives.

Benefits:
> The scheme provides a financial incentive for the net incremental sales of goods manufactured in India and covered under the target segment.

1. Target Segment Products: The tangible benefits apply to the manufacturing of Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USSF) devices.
1. **Incentive Rates (Year 1 → Year 6):**

    - Assembly of Laptops/Tablets/All-in-One PCs/USFF: 3% → 0%

    - Assembly of Servers: 3% → 0%
    - PCBA: 1.20% → 0.90%
    - Display Panel: 1.49% → 1.12%
    - Memory Modules: 0.95% → 0.71%
    - SSD: 0.95% → 0.71%
    - Cabinets/Chassis/Enclosures: 1.49% → 1.12%
    - SoC Processors designed in India: 3.24% → 2.43% (up to 3.78% → 2.84% for Servers)
    - Additional incentives available for ATMP and IC manufacturing in India

1. **Investment Shortfall Relief**

- If investment shortfall is ≤40% of the threshold, incentive is still payable (with partial deduction of X/2%)
- Withheld incentive is refunded without interest once the investment threshold is met in a later year.

> **Duration:** Incentive given for 6 consecutive years within the scheme tenure

> **Frequency:** Claims can be filed quarterly, half-yearly, or annually

> **Filing Deadline:** Claims must be filed within 9 months from the end of the relevant financial year

<br>

Eligibility:
1. The applicant must be a company registered in India.
1. The applicant should propose to manufacture goods covered under the Target Segment.
1. The applicant must meet the threshold criteria of Incremental Investment.
1. The applicant must meet the threshold criteria of Net Incremental Sales of manufactured target segment goods over the base year.
1. The applicant should meet the qualification criteria based on Consolidated Global Manufacturing Revenue for Financial Year 2021-22.
1. The applicant under the Global Company category must have a Consolidated Global Manufacturing Revenue greater than ₹50,00,00,00,000/- (5,000 crore) for the target segment or greater than ₹100,00,00,00,000/- (10,000 crore) for electronics hardware.
1. The applicant under the Domestic Company category must have a Consolidated Global Manufacturing Revenue greater than ₹1,00,00,000/- (10 crore) for the target segment or greater than ₹2,00,00,000/- (20 crore) for electronics hardware.
1. The applicant must localise at least Printed Circuit Board Assembly (PCBA) and assembly of finished goods from the first year.

<br>

Application Process:
[Online]
Step 1: Visit the official portal of the Production Linked Incentive (PLI) Scheme - 2.0 for IT Hardware.
Step 2: Register on the portal using the company details.
Step 3: Access the application form available on the portal.
Step 4: Fill in all required details, including investment, production plans, and financial information.
Step 5: Upload all required documents as specified.
Step 6: Submit the application online within the prescribed timeline.
Step 7: The application will be evaluated by the Project Management Agency (PMA).
Step 8: Provide clarifications or additional documents, if requested during evaluation.
Step 9: Upon approval, receive the approval letter from the concerned authority.
Step 10: Commence production and submit claims for incentives on an annual basis.
Step 11: Claims will be verified by the Project Management Agency (PMA) and approved for disbursement.

Documents Required:
Application Form (as prescribed in Annexure 3)
Proof of Payment of Application Fee (₹1,00,000/- paid electronically)
Self-certified Statement of Consolidated Global Revenue for Financial Year (as per Annexure 4)
Localisation Plan and Annual Incentive Projection
Integrity Compliance Certificate (as per Annexure 10)
Independent Auditor’s Certificate (confirming investment and sales details)
Chartered Engineer Certificate (for physical verification of plant and machinery)
Managing Director/CEO Certificate Regarding Regulatory Clearances
Board Resolution (accepting terms and conditions)
Declaration from Component Supplier (if localisation is done through a supply chain partner)
Undertaking from the Contract Manufacturer (confirming they have not claimed double incentives).