The centre notified the second phase of the production-linked incentive scheme for IT hardware on May 14 with a budgetary outlay of Rs 17,000 crore, more than doubling the incentives in the initial version of the plan.
The scheme intends to attract global companies like Dell, HP, Apple, and Samsung to manufacture IT hardware such as laptops, tablets, all-in-one PCs, servers, and ultra small form factors in India.
The government notified the operational guidelines for the revised IT Hardware PLI scheme on May 14, that addresses the fine print applicants need to adhere to. This includes the methodology of calculating the domestic value addition, the components that needs to be localised, eligible products covered by the scheme, and more.
The revised scheme was notified in the Gazette after the union cabinet approved it on May 17. The new scheme will extend an average incentive of around 5%, more than double the 2% incentive offered in the previous version.
The revised scheme added flexibilities in both tenure and investments for participants. While the tenure of the scheme is for six years, participants can choose 2023, 2024, or 2025 as the base year for investment and calculating incremental sales.
