The recent released production-linked incentive (PLI) scheme for hardware has now created a lot of issues for electronics manufacturers. According to a news report, HP, Dell, Foxconn, Samsung, Wistron and other electronics manufacturers want to have a revised or timelines extended of the PLI Scheme.
The manufacturers have asked ministry of electronics and IT through seperate meetings that investors may be discouraged from taking up the scheme and investing in the country.
They said the changes are needed to avoid a situation mobile phone manufacturers found themselves in, with only one of 16 handset companies achieving the target for FY21 even after making timely investments.
“PLI was conceptualised by the government in the pre-Covid era, but now there is a serious need to relook the scheme. The target should be revised or instead of four years we should be given five years to qualify for incentives,” said Nitin Kunkolienker, president of the Manufacturers’ Association for Information Technology to a news portal.
He said the scheme is a two-way partnership between the government and the industry. The government would be the larger beneficiary, with 60% of the gains by way of foreign exchange, tax and non-tax revenue, employment, economic activity and social sector benefits.
“The idea is not to prove that industry is failing to achieve, the idea is to prove that the government ensures the industry succeeds in leading this revolution,” he said.
Queries sent to HP, Samsung and Wistron did not elicit any response till press time. Dell and Rising Stars (Foxconn) declined to comment.
All but one of the first batch of 16 PLI companies that were approved to make mobile phones in October failed to meet their production targets for the first year ended March 31, 2021.
Apart from Samsung, the other companies have been asking the ministry to declare FY21 as a zero year because Covid-19-led restrictions delayed the setting up of production lines.