First Incentive under PLI released

September 9, 2022 News Desk Business Comments Off on First Incentive under PLI released

Sep 9: In the first-ever disbursement under the Production-Linked Incentive (PLI) schemes, envisioned by the Hon’ble Prime Minister, the Empowered Committee headed by CEO, NITI Aayog, today approved incentive for mobile manufacturing under the ‘Large-Scale Electronics Manufacturing’ sector.

The PLI scheme for Large-Scale Electronics Manufacturing, mapped to the Union Ministry of Electronics and Information Technology (MEITY), is expected to make India a competitive destination for electronics manufacturing and give a boost to Aatmanirbhar Bharat while creating more global champions.

M/s Padget Electronics Pvt Ltd, a domestic company, is the first beneficiary approved by the Empowered Committee to receive incentive under mobile manufacturing based on its incremental investment and sales figures for FY 2021–22. Padget Electronics Pvt. Ltd is a 100% subsidiary of Dixon Technologies Pvt. Ltd and has manufacturing facilities in Noida, Uttar Pradesh.

Thirty-two beneficiaries had been approved under the PLI scheme for Large-Scale Electronics Manufacturing, of which 10 (5 global and 5 domestic companies) were approved for mobile manufacturing. For the quarter ending June 2022, the applicants under this PLI scheme had undertaken sales of Rs 1,67,770 crore, including export of Rs 65,240 crore. This PLI scheme has also generated employment of 28,636. Over the last 3 years, exports have grown by 139%. The applications for incentives by the other beneficiaries will also be considered for approval soon.

The proposal for disbursement of incentives presented by MEITY was considered by the Empowered Committee comprising NITI Aayog CEO Parameswaran Iyer, DPIIT Secretary Anurag Jain, MEITY Secretary Alkesh Kumar Sharma, and representatives from the Department of Expenditure, Department of Revenue, Department of Economic Affairs and office of DGFT. The Empowered Committee gave its recommendations for disbursal of incentive to the selected beneficiary under the PLI scheme.

The PLI scheme on Large-Scale Electronic Manufacturing, which includes manufacturing of mobile phones and manufacturing of specified electronic components, was approved in March 2020, with a total outlay of Rs 38,645 crores. The scheme is expected to bring in additional production to the tune of Rs 10,69,432 crore and generate employment for 7,00,000 people.

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120Cr Incentives under PLI Scheme for drone Components

September 16, 2021 News Desk Business Comments Off on 120Cr Incentives under PLI Scheme for drone Components

Shri Jyotiraditya M. Scindia, Union Minister of Civil Aviation, apprised the media about the important features of the PLI Scheme in a press conference here today. He said that under the PLI scheme, incentives of Rs. 120 crore will be given in the next 3 years. This amount is 1.5 times the combined size of the manufacturing drone sector. Over a period of three years, estimated investment worth ₹5,000 Crore for manufacturing sector drones will be done which in turn will bring a turnover of Rs 900 crore, and 10,000 job opportunities will be created. He further added that our objective is to establish India as a global drone hub by 2030 and Ministry of Civil Aviation is committed to facilitate industry, service delivery and consumers in achieving the aforesaid target.

Top 15 Features of the PLI Scheme for Drones, 2021

The total amount allocated for the PLI scheme for drones and drone components is INR 120 crore spread over three financial years. This amount is nearly double the combined turnover of all domestic drone manufacturers in FY 2020-21.
The incentive for a manufacturer of drones and drone components shall be as high as 20% of the value addition made by her.
The value addition shall be calculated as the annual sales revenue from drones and drone components (net of GST) minus the purchase cost (net of GST) of drone and drone components.
The Government, has agreed to keep the PLI rate constant at 20% for all three years, an exceptional treatment given only to the drone industry. In PLI schemes for other sectors, the PLI rate reduces every year.
The proposed tenure of the PLI scheme is three years starting in FY 2021-22. The PLI scheme will be extended or redrafted after studying its impact in consultation with the industry.
The Government has agreed to fix the minimum value addition norm at 40% of net salesfor drones and drone components instead of 50%, another exceptional treatment given to the drone industry. This will allow widening the number of beneficiaries.
The PLI scheme covers a wide variety of drone components:
Airframe, propulsion systems(engine and electric), power systems, batteries and associated components, launch and recovery systems;
Inertial Measurement Unit, Inertial Navigation System, flight control module, ground control station and associated components;
Communications systems (radio frequency, transponders, satellite-based etc.)
Cameras, sensors, spraying systems and related payload etc.;
‘Detect and Avoid’ system, emergency recovery system, trackers etc. and other components critical for safety and security.
The list of eligible components may be expanded by the Government from time to time, as the drone technology evolves.
The Government has agreed to widen the coverage of the incentive scheme to include developers of drone-related IT products also.
The Government has kept the eligibility norm for MSME and startups in terms of annual sales turnover at a nominal level – INR 2 cr (for drones) and INR 50 lakhs (for drone components). This will allow widening the number of beneficiaries.
Eligibility norm for non-MSME companies in terms of annual sales turnover has been kept at INR 4 crore (for drones) and INR 1 crore (for drone components).
The incentive payable to a manufacturer of drones and drone components shall be simply one-fifth of her value addition as illustrated below for a sample year (say, FY 2021-22):
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