PLI Scheme: India Invites Applications For Second Round Of Large-Scale Electronics Manufacturing
Cameras for smartphones on an assembly line at Dixon Technologies’ Padget Electronics Pvt. factory in Noida. Photographer: Anindito Mukherjee/Bloomberg

PLI Scheme: India Invites Applications For Second Round Of Large-Scale Electronics Manufacturing

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The government has started inviting applications for the second round of large-scale electronics manufacturing under the production-linked incentive scheme with focus on some electronic components like motherboards, semiconductor devices, among others.

Application window for the scheme will remain open till March 31 which may be further extended, according to guidelines issued by the Ministry of Electronics and IT.

“The second round of the PLI scheme is open for accepting applications,” an official memorandum dated March 11 said. “The tenure of the second round of PLI scheme is for four years and the incentive shall be applicable from April 1, 2021.”

The first round of the scheme was open for receiving applications till July 31 which attracted participation from global majors like Apple’s contract manufacturers Foxconn, Wistron and Pegatron; Samsung; local players Lava, Optiemus, Dixon etc.—committing investment of over Rs 11,000 crore.

While the first round targeted mobile manufacturing with incentives for 20 companies, the second round has expanded the window for up to 30 eligible companies.

The new guidelines have identified components, discrete semiconductor devices including transistors, diodes etc, passive components including resistors, capacitors, printed circuit board, assembly, ATMP (assembly, testing, marketing and packaging) units as target for the second round of PLI.

“Incentives under the second round of PLI scheme shall be applicable from April 1, 2021,” the guidelines said.

While companies whose projects were approved in the first round of PLI cannot participate in the second round, however, their group companies having minority or non-controlling interest in the applicant companies will be allowed to apply for incentives, according to the new guidelines.

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