Govt eyes extra sops for mobile makers topping PLI targets
incentives for companies that have exceeded production, sales, and export targets of mobile phones every financial year under the mobile phone production-linked incentive (PLI) scheme, sources told ET.
A senior government official told ET that some companies have consistently met their production, sales and export targets under the PLI scheme and have sought additional incentives due to them as soon as possible as a “good faith” measure.
“The decision on disbursement on production above the ceiling limit is pending at the empowered committee level. We are looking at how to approach this issue best and hope to arrive at a solution soon,” an official said.
The PLI scheme for large-scale electronics manufacturing notified on April 1, 2020 provides an incentive of 4%-6% on incremental sales over the base year.
Though the scheme was supposed to run only till 2024-25, it was extended by a year to accommodate requests from companies that fell short of their production targets due to various COVID-19-induced lockdowns.
Of the 32 companies approved under the PLI scheme for mobile phone manufacturing, seven are greenfield projects, while the other 25 are brownfield projects.
Under the PLI scheme for mobile phone manufacturing, companies can raise demand for the incentives one year after they have achieved their production targets.
Companies that met their production and incremental sales target are given a 6% incentive in the first two years, followed by 5% in the third and fourth year of production and 4% in the fifth
