The government today has extended the period of production-linked incentive scheme for large-scale electronics manufacturing with a focus on mobile phones by a year until 2025-26. 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.


According to Nirmala Sitharaman this step has been undertaken to help revive the Covid-hit economy.She said that with respect to the earlier date 2024-25 , now it is extended from 2020-21 to 2025-26.
The Ministry of Electronics and IT has cleared 16 proposals from domestic and international companies entailing 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.
Mobile phone makers’ body India Cellular and Electronics Association Chairman Pankaj Mohindroo feels that this is very important as this step will help to build India in establishing as a global value chain in the electronics sector. Not only will this it will also support Indian companies to tap the global as well as other markets .

Mr. Rajesh Agrawal, Director, Micromax (Bhagwati Pvt. Ltd) commented on the extension of PLI scheme, “The government’s decision to extend the PLI scheme for mobile phone manufacturing by a year offers a much-needed respite to the manufacturing industry that is reeling under the impact of the pandemic. This is a welcome move and will allow for more flexibility wherein we can now choose the years for meeting our production targets. Overall, it is a forward-thinking decision by the government to re-think business and scalability in these uncertain times that reiterates the government’s support for the manufacturing industry. “

Mr. A. Gururaj, Managing Director, Optiemus Electronics Limited feels that”Optiemus Electronics welcomes the government’s move to extend the tenure of the PLI scheme. We are grateful to the government for having considered the industry’s request in view of some of the problems faced due to the pandemic. Optiemus is fully committed to working towards the Atma Nirbhar Bharat initiatives of the Hon Prime Minister and we are confident Optiemus will show positive results as a result of the PLI scheme.”
The companies include iPhone maker Apple’s contract manufacturers Foxconn Hon Hai, Wistron and Pegatron, apart from Samsung and Rising Star.
Domestic companies whose proposals have been approved include Lava, Bhagwati (Micromax), Padget Electronics (Dixon Technologies), UTL Neolyncs and Optiemus.
The eligible companies will get 4-6 per cent incentives on incremental sale of companies.
Now let us see how mobile companies benefit from PLI scheme .