Firms commit over Rs 200 crore under PLI plan

Home-grown electronics makers such as Dixon Technologies, Infopower Technologies, VVDN and Bhagwati Products (Micromax) have committed more than ₹200 crore to expand IT hardware manufacturing capacity under the government’s production-linked incentive (PLI) scheme.The ₹7,350-crore incentive scheme — notified in March — stretches over a four-year period from April 2021 to March 2025.Dixon, the largest Indian electronics products manufacturer, is setting up its 13th factory in Noida, Uttar Pradesh, for laptops and tablets, which is expected to start production in the next four months.Infopower Technologies, VVDN, and Bhagwati Products — the maker of Micromax mobiles — are expanding existing facilities for all four product lines — laptops, tablets, personal computers, and all-in-one servers.Bengaluru-based Smile Electronics is expected to operationalise its new plant in Hindupur, Andhra Pradesh, by the end of the fiscal year.The Ministry of Electronics and IT earlier this month approved four global companies — Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn) — as well as 10 domestic companies — Lava, Dixon, Infopower, Bhagwati, Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife — under the scheme.As per the scheme’s guidelines, domestic players must invest ₹20 crore and achieve incremental sales of ₹50 crore in the first year, ₹100 crore in the second, ₹200 crore in the third and ₹300 crore in the final year to qualify for incentives of 1-4% on incremental sales over the base year — FY19-20.“We have set aside an investment of ₹25 crore over four years, of which ₹10 crore will be spent in the first year in our new facility which will have a capacity of producing 500,000 laptops and 2.5 million tablets in a year,” Sunil Vachani, executive chairman of Dixon told ET. “We are estimating employment generation for 2,000 people by the second year.”

from Economic Times https://ift.tt/3eqwxfV