The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in the 10 key sectors for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.

 

Objective:

The Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including electronic components and semiconductor packaging.

Production linked Incentives
Sr.No Sector/Industry Scheme Targeted Segments Eligibility Incentives Tenure
        Investment Sales    
1 Electronics Manufacturing Production linked incentive scheme for large scale electronics manufacturing Mobile phones

(Invoice value 15000 & above)

Year 1 250 Crore
Year 2 500 Crore
Year 3 750 Crore
Year 4 1000 croreThis amounts are cummulative
Year 1 4000 crore
Year 2 8000 crore
Year 3 15000 crore
Year 4 20000 crore
Year 5 25000 croreThis amount represents incremental sales
Percentage of incremental sales

Year 1 6%
Year 2 6%
Year 3 5%
Year 4 5%
Year 5 4%

5 years
Mobile phones

(Domestic companies

Year 1 50 Crore
Year 2 100 Crore
Year 3 150 Crore
Year 4 200 croreThis amounts are cummulative
Year 1 500 crore
Year 2 1000 crore
Year 3 2000 crore
Year 4 3500 crore
Year 5 5000 croreThis amount represents incremental sales
Percentage of incremental sales

Year 1 6%
Year 2 6%
Year 3 5%
Year 4 5%
Year 5 4%

5 years
Specified Electronics Components Year 1 25 Crore
Year 2 50 Crore
Year 3 75 Crore
Year 4 100 croreThis amounts are cummulative
Year 1 100 crore
Year 2 200 crore
Year 3 300 crore
Year 4 450 crore
Year 5 600 croreThis amount represents incremental sales
Percentage of incremental sales

Year 1 6%
Year 2 6%
Year 3 5%
Year 4 5%
Year 5 4%

5 years
2 Electronics Manufacturing Scheme for promotion of manufacturing of electronic components and semi conductors Electronic Components, Semiconductors, Specialized Sub-Assemblies and Capital Goods for these items Applicable to investment in new units as well as expansion of existing units Incentive of 25% on Capital Expenditure pertaining to plant, machinery, equipment, associated utilities and technology, including Research & Development on reimbursement basis SPECS will be open for applications for 3 years. Investments made within 5 years from the date of acknowledgement will be eligible for receiving incentive
3 Electronics Manufacturing Modified electronics manufacturing cluster scheme Electronics Manufacturing companies with a commitment to purchase/lease a minimum of 20% of the land area and invest a minimum of INR 300 crore For Anchor Units
Purchase/Lease at least 20 % of land area
Investment commitment of 300 croreFor EMC Projects
Minimum land area 200 acre
Overall ceiling 350 crore per projects

Expansion related projects
Minimum Land area 100 acre
At least 50 % of land allotted should have started production activity

Common facility center
75% of project cost should be awarded subject to ceiling of 75 crore
5 electronics manufacturing units identified as users

Financial incentives of up to 50% of project cost will be awarded, subject to a ceiling of INR 70 crore for every 100 acres of land EMC 2.0 will be open for applications for 3 years. A further period of 5 years will be available for disbursement of funds

 

 

Eligibility:

  1. Support under the Scheme shall be provided only to companies engaged in manufacturing of target segments in India.
  2. Eligibility shall be subject to thresholds of incremental investment and incremental sales of manufactured goods (as distinct from traded goods). An applicant must meet all the threshold conditions to be eligible for disbursement of incentive. Eligibility threshold criteria are detailed in table.
  3. Incentive Per Company: The incentive per company will be applicable on incremental sales of manufactured goods (as distinct from traded goods) over base year subject to ceilings as decided by the Empowered Committee.

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