Govt approves 16 proposals worth Rs 11,000 crore investment in produce mobile phones

The Centre on Tuesday said that it has cleared 16 proposals from domestic and international companies entailing an investment of Rs 11,000 crore under the production linked incentive (PLI) scheme to manufacture mobile phones worth Rs 10.5 lakh crore over the next five years.

The companies include iPhone maker Apple’s contract manufacturers Foxconn Hon Hai, Wistron and Pegatron, apart from Samsung and Rising Star, the Ministry of Electronics and Information Technology said in a statement.

The domestic companies whose proposals have been approved include Lava, Bhagwati (Micromax), Padget Electronics (Dixon Technologies) and UTL Neolyncs.

Total six companies have been approved under the Specified Electronic Components Segment which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolyncs, the statement said.

The companies approved under the scheme will generate more than 2 lakh direct jobs in the next five years, along with indirect employment of nearly three times the direct employment opportunities, the statement said.

“The companies approved under the scheme will bring additional investment in electronics manufacturing to the tune of INR 11,000 crore,” the Ministry said in a statement.

The Ministry notified the Production Linked Incentive Scheme for large scale electronics manufacturing on April 1, 2020, to boost mobile handsets and electronics goods manufacturing.

The companies approved under the scheme are expected to promote exports significantly. Out of the total production of Rs 10.5 lakh crore in the next 5 years, around 60% will be contributed by exports of the order of Rs. 6.50 lakh crore.