The Centre on Monday extended the period of production-linked incentive scheme for large-scale electronics manufacturing with a focus on mobile phones till 2025-26.
This will bring relief to mobile phone makers, who have been demanding extension as production has suffered due to Covid-19.
The base year of the scheme 2019-20 remains the same but the companies will have the option to choose their five-year period either from the base year or the year 2020-21 for calculation of the incentives under the scheme.
"Now we have extended the tenure of the scheme from 2020-21 to 2025-26. Earlier, it would have ended in 2024-25. For those who have made investments even in 2020-21 they will also get counted because we have given them the option of choosing any five years for meeting their production target under the scheme," Finance Minister Nirmala Sitharaman said while announcing new fiscal stimulus package.
"Tenure of the scheme launched in 2020-21 is proposed to be extended by one year i.e. till 2025-26," the Minister said.
"Participating companies will get option of choosing any five years for meeting their production targets under the scheme. Investments made in 2020-21 will continue to be counted as eligible investments," she said.
Aimed at making India as major destination for mobile phone production, the Ministry of Electronics and Information Technology announced Rs Rs41,000 crore PLI scheme–which entails incentives in the form of cash payouts based on investment and targeted increments in production.
The Centre announced plans to make the country a global manufacturing hub with an export target for phones worth $100 billion over the next five years.
Reacting to the Minister announcement, Pankaj Mohindroo Chairman, ICEA ( India Cellular and Electronics Association) said “Extension would not only support the Government’s efforts to establish India as an integral part of the Global Value Chain (GVC) in the electronics sector, it will also support developing Indian Champion companies to tap the Global as well as Indian markets through this sharply targeted production incentivization scheme.It is a great win for India."
"This decision will enable the nation to become a global electronics manufacturing destination and also send the right message to the global investors in the pandemic time.It shows that India’s governance is deeply compassionate,realistic and always standing behind trade and industry," he said in a statement.