Monday, May 20, 2024

IT ministry approves Rs 10.5 lakh crores of mobile production for 16 makers

16 phone-makers could produce output of more than Rs 10.5 lakh crores over the next five years, this was revealed in a press release by the Ministry of Electronics and Information and Technology.

The ministry has approved the proposal of 16 phone-makers under the Production-Linked Incentive Scheme (PLI) which was notified on April 1, announcing incentive of 4-6% on incremental sales over base years of goods under targeted segments. This incentive is for five years, subsequent to the base year FY-2019-2020.

Companies approved under Mobile Phones (invoice value Rs 15,000 and more) segment have proposed a production of over Rs 9,00,000 crore. Those companies approved under Mobile Phone (domestic companies) segment have proposed production of about Rs 1,25,000 crore and the companies under specified electronic components have proposed a production of over Rs 15,000 crores.

The companies approved under Mobile Phone (Invoice Value Rs 15,000 and above) are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron. Out of these, Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. Apple (37%) and Samsung (22%) together account for nearly 60% of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country.

Under Mobile Phone (Domestic Companies) Segment, Indian companies including Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics have been approved by the ministry. These companies are expected to expand their manufacturing operations in a significant manner in India.

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