Indian Company Padget Electronics First Beneficiary to Receive Incentive
In the first-ever disbursement under the Production-Linked Incentive (PLI) schemes, envisioned by the Hon’ble Prime Minister, the Empowered Committee headed by CEO, NITI Aayog, today approved an incentive for mobile manufacturing under the ‘Large-Scale Electronics Manufacturing sector.
The PLI scheme for Large-Scale Electronics Manufacturing mapped to the Union Ministry of Electronics and Information Technology (MEITY), is expected to make India a competitive destination for electronics manufacturing and give a boost to Aatmanirbhar Bharat while creating more global champions.
M/s Padget Electronics Pvt Ltd, a domestic company, is the first beneficiary approved by the Empowered Committee to receive incentives under mobile manufacturing based on its incremental investment and sales figures for FY 2021–22. Padget Electronics Pvt. Ltd is a 100% subsidiary of Dixon Technologies Pvt. Ltd and has manufacturing facilities in Noida, and Uttar Pradesh.
Thirty-two beneficiaries had been approved under the PLI scheme for Large-Scale Electronics Manufacturing, of which 10 (5 global and 5 domestic companies) were approved for mobile manufacturing. For the quarter ending June 2022, the applicants under this PLI scheme had undertaken sales of Rs 1,67,770 crore, including export of Rs 65,240 crore. This PLI scheme has also generated employment of 28,636. Over the last 3 years, exports have grown by 139%. The applications for incentives by the other beneficiaries will also be considered for approval soon.
The proposal for disbursement of incentives presented by MEITY was considered by the Empowered Committee comprising NITI Aayog CEO Parameswaran Iyer, DPIIT Secretary Anurag Jain, MEITY Secretary Alkesh Kumar Sharma, and representatives from the Department of Expenditure, Department of Revenue, Department of Economic Affairs and office of DGFT. The Empowered Committee gave its recommendations for the disbursal of incentives to the selected beneficiary under the PLI scheme.
The PLI scheme on Large-Scale Electronic Manufacturing, which includes the manufacturing of mobile phones and the manufacturing of specified electronic components, was approved in March 2020, with a total outlay of Rs 38,645 crores. The scheme is expected to bring in additional production to the tune of Rs 10,69,432 crore and generate employment for 7,00,000 people.