Minister of State for IT said - Domestic manufacturing is ready for global competition; Investment of Rs 8,282 crore
IT: Under the Production Based Incentive (PLI) scheme launched to promote manufacturing in the country on a large scale, a total investment of Rs 8,282 crore has been made by 32 companies related to electronics manufacturing till the end of June 2024. Of these companies approved under the PLI scheme for electronics manufacturing, seven are greenfield, and 25 are brownfield units.
According to Minister of State for Electronics and Information Technology Jitin Prasad, on Wednesday, the greenfield companies — subsidiary units opened in another country by the parent company — have contributed Rs 3,136 crore to the share of the investment of Rs 8,282 crore. Units that build or lease existing facilities or other resources—that is brownfield companies—have contributed an investment of Rs 5,146 crore under the PLI scheme. He said that the PLI scheme was launched on April 1, 2020, to further strengthen homegrown electronic manufacturing for competition in the global marketplace. So far, 32 companies have been approved, involving a commitment of Rs 11,324 crore investment.
The government has not changed anything in production or investment criteria after the selection of electronics manufacturing companies under the PLI scheme. However, to give relief to the companies who suffered from the Covid-19 epidemic, the period of the PLI scheme has been increased by one year to 2025-26. This period was earlier 2024-25. Companies can choose any five-year period till 2025-26 for meeting the production targets.
The Minister of State said that 27 companies have been approved under the PLI 2.0 scheme for IT hardware. They have invested a total of Rs 464.66 crore till June 30, 2024. These include 6 greenfield and 21 brownfield companies, which have contributed Rs 78.57 crore and Rs 386.09 crore respectively.
Under the PLI scheme notified in March 2021, 14 IT hardware companies have been approved with an investment of Rs 2,517 crore and a production commitment of Rs 1,60,751 crore. Under PLI 2.0 notified in May 2023, 27 companies have been approved with an investment of Rs 2,955 crore and a production commitment of Rs 3,51,647 crore. The government has allocated Rs 12,493.02 crore for the PLI scheme in various sectors in the budget for 2024-25.
