The Ministry of Electronics and Information and Technology (MeitY) notified the Production Linked Incentive (PLI) Scheme on April 1, 2020 for Large Scale Electronics Manufacturing with an aim to boost domestic manufacturing of mobile phones in India. With the launch of this PLI Scheme, the government looked forward to attract large investments in manufacturing mobile phones including the Assembly, Testing, Marking and Packaging (ATMP) units. The PLI Scheme resonates with the ambitious Aatma Nirbhar Bharat campaign and Make in India initiative to make India a self-reliant nation.
1. The Production Linked Incentive (PLI) Scheme provides 4% to 6% incentive on ↓incremental sales (over base year, 2019-20) to eligible companies for manufacturing goods for 5 years period.
2. Companies that are registered in India and are involved in the manufacturing of goods covered under the Target Segments of the scheme can apply under the Scheme.
3. With an aim to make India self-reliant in manufacturing of goods and commodities, the Government plans to includes eight to ten more sectors under the Production Linked Incentive (PLI) Scheme. These sectors could be food processing sector, textiles sector, etc.
Recently, The Indian Cellular and Electronics Association (ICEA) has written letters to the NITI Aayog to consider declaring 2020-21 as ↓ZERO YEAR for production-linked incentive (PLI) scheme for manufacturing of mobile phones.
❓What is Incremental Sale?
In simple words - If I sell ten products every day at full price, then I run a promo and sell eleven products, then that one extra product is an incremental sale.
❓What is ZERO YEAR?
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