IT hardware PLI scheme likely to extend

Indian government is expected to extend the Production-Linked Incentive (PLI) scheme by one year at least for the IT hardware. According to the sources, several selected firms under the PLI scheme have showed concern to the government that due to supply chain issues and shortage of semi conductors, there could be delay in reaching required production level in order to meet production and sales target. Thus, the firms worry that they may end up missing the targets.

IT hardware includes products such as laptops, tablets, all-in-one personal computers (PCs), and servers. The base year under the PLI scheme for IT hardware is FY20 with 4 years as tenure duration. Year of commencement for the scheme is FY22. Thus, in one year extension, the terminating year would be FY26 instead of FY25.

Optiemus Electronics, Managing Director at A Gururaj, said, “For IT hardware industry, supply chain issues are a concern because of shortage of semiconductor supplies. There will be a request from the industry seeking an extension by another year. At the end of the day, we have to be realistic about what can be done and I think given the constraints, especially supply chain, a request for an extension of one year will come from our side.” Optiemus is selected under the PLI scheme for IT hardware.

 

 

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