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Tag: IT Ministry PLI schemes

  • IT Min rejects calls for, to not prolong first 12 months PLI deadline

    THE MINISTRY of Electronics and Information Technology has determined to not prolong the deadline for first 12 months of production-linked incentive (PLI) scheme for cell phone and allied part manufacturing, senior authorities officers advised The Indian Express.
    “The scheme is very clear in its targets from Day One. There was no ambiguity, as it is in the scheme, so there is no question of rolling over the deadlines or pushing the start of the PLI (scheme) for one year,” a senior official mentioned.
    Any resolution to increase past the schedule that was introduced in April 2020 will likely be taken solely after the scheme has accomplished its preliminary goal of 5 years, the official quoted above mentioned. The PLI scheme for cell, allied elements and sure different specified digital part was introduced in April 2020, with incentives of 4-6 per cent. The scheme envisaged incentives for firms on achievement of a minimal threshold of cumulative incremental funding and incremental gross sales of manufactured items web of taxes, with FY20 thought of as base 12 months for calculation of incentives.
    For the primary 12 months, the overall incentive to be given has been capped at Rs 5,334 crore, whereas for the second and third 12 months it has been stored at Rs 8,064 and Rs 8,425 crore, respectively. In the fourth 12 months, the inducement will likely be hiked considerably to Rs 11,488 crore, whereas within the fifth and last 12 months, the inducement to be distributed has been capped at Rs 7,640 crore. The complete incentives over 5 years has, thus, been stored at Rs 40,951 crore.
    Last December, Apple’s contract producers Wistron and Foxconn, and others reminiscent of Samsung, together with some home firms, approached the federal government asking it to roll-over milestones for the primary 12 months.
    These firms had, of their assembly with senior officers from the IT Ministry, cited lack of well timed approvals for land acquisition offers for brand spanking new factories, absence of adequately skilled workforce and lack of demand out there as a result of Covid-induced slowdown.

    Based on business representations, the IT Ministry, in January, began conferences with NITI Aayog, Finance Ministry and different related departments. IT Ministry officers had additionally met members of the empowered finance committee (EFC) to think about the choice of pushing the deadline.
    The EFC, headed by NITI Aayog CEO Amitabh Kant, additionally has the secretaries of the Departments of Economic Affairs, Expenditure, Revenue, Department for Promotion of Industry and Internal Trade, MeitY in addition to the Directorate General of Foreign Trade. Officials from all related departments, nonetheless, got here to the conclusion that the scheme must be run as it’s for now, and reviewed solely after the completion of preliminary schedule of 5 years.
    Meanwhile, the small print of incentives and different advantages for a PLI scheme for laptops, iPads, all-in-one desktops, and servers have been finalised by the IT Ministry and can quickly be introduced to the Cabinet for its approval, officers mentioned. “Once we get approval from the Cabinet and other relevant departments, we will be rolling out the scheme,” the official mentioned, declining to touch upon complete quantity of incentives for the scheme.

  • PLI schemes: IT Min plans meet to push deadline by a 12 months as most cos say will miss goal


    The Ministry of Electronics and Information Technology (MeitY) plans to begin consultative conferences with members of the empowered finance committee (EFC) to contemplate the choice of pushing the deadline for production-linked incentive (PLI) schemes for cellular handset and sure different specified digital element manufacturing by a 12 months, sources in know of the event advised The Indian Express.
    The EFC, headed by Chief Executive Officer (CEO) of Niti Aayog Amitabh Kant, additionally has the secretaries of the Departments of Economic Affairs, Expenditure, Revenue, Department for Promotion of Industry and Internal Trade, MeitY in addition to the Directorate General of Foreign Trade on the panel. The committee is more likely to begin assembly in January on the difficulty and ship its suggestions to the Finance Ministry, the IT Ministry in addition to different related departments, the sources stated.
    The calls for to push the deadline for PLI in cellular handset and sure different specified digital element have come from a number of main international and home element producers, which have, over the previous month, made representations to the IT Ministry on the difficulty.
    These corporations, sources stated, cited the dearth of expert labour and different sources as hindrances in assembly the targets for the primary 12 months. These corporations additionally identified the paucity of time as a result of delayed approvals in of requisite land clearances for increasing and organising new models, in line with the sources.
    The PLI scheme for making cell phones and sure different specified digital parts envisages incentives of 4-6 per cent to electronics corporations, which manufacture cell phones and different digital parts akin to transistors, diodes, thyristors, resistors, capacitors and nano-electronic parts akin to micro electromechanical programs.
    The PLI scheme will likely be energetic for 5 years with monetary 12 months (FY) 2019-20 thought of as the bottom 12 months for calculation of incentives. This implies that all investments and incremental gross sales registered after FY20 shall be taken into consideration whereas computing the inducement to be given to every firm.
    For the primary 12 months, the whole incentive to be given has been capped at Rs 5,334 crore, whereas for the second and third 12 months it has been saved at Rs 8,064 and Rs 8,425 crore, respectively. In the fourth 12 months, the inducement will likely be hiked considerably to Rs 11,488 crore, whereas within the fifth and closing 12 months, the inducement to be distributed has been capped at Rs 7,640 crore. The complete incentives over 5 years has, thus, been saved at Rs 40,951 crore.