“We at Dixon would be looking at making an investment of Rs 250 crore that is required as part of the scheme, and maybe even more, over a period of six years,” said Sunil Vachani, CMD, Dixon Technologies.
He added that IT hardware is a large import category with the value of inbound shipments touching $6 billion annually. The revised scheme will help in substituting imports and make sure whatever sold in India is made in India.
The union cabinet Wednesday approved a budgetary outlay of Rs 17,000 crore for the IT hardware PLI 2.0<\/a>, up from Rs 7,350 crore in the previous version of the scheme, for a period of six years.The previous version of the scheme, announced in 2021, had failed to take off with only Dell<\/a>, Bhagwati (Micromax<\/a>), and Dixon Technologies were able to meet the first year (FY22) targets.
The revised scheme now outlays an incentive of 5% - compared with around 2% in the initial plan - for meeting incremental production and investment targets, along with optional additional incentive for localisation.
“The budget outlay has been increased, the scheme focuses on value addition, and a new hybrid category is there as part of the scheme which will allow any domestic company who wants to invest in larger numbers and do larger volumes,” Vachani said.
Global PC brand HP said it has been engaging with the government ahead of the announcement and has had a long history of manufacturing in India.
“We are currently evaluating details of the programme along with its potential benefits to HP and its customers,” HP India said in a statement.
A. Gururaj, managing director of homegrown contract manufacturer Optiemus, which is already making IT hardware for brands under the current PLI scheme, said the company will be “actively considering and evaluating their options to participate in this new phase of growth in electronics manufacturing.”
Ali Akhtar Jafri, director general, Manufacturing Association For Information Technology (MAIT), added that the industry body is confident that the revised PLI scheme will boost manufacturing in India to both meet domestic demand and also boost export as has been achieved in the case of the mobile phone PLI.
Another industry body, India Cellular and Electronics Association (ICEA<\/a>), estimates the IT hardware industry including both global and domestic companies, catalysed by the revised scheme, is targeted to reach a production of $24 billion by 2025-26, with exports anticipated to be in the range of $12-17 billion in the same period.
<\/body>","next_sibling":[{"msid":100298417,"title":"Boult launches Drift Pro smartwatch with Bluetooth calling, AMOLED display at Rs 1999","entity_type":"ARTICLE","link":"\/news\/devices\/boult-launches-drift-pro-smartwatch-with-bluetooth-calling-amoled-display-at-rs-1999\/100298417","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":100304530,"entity_type":"ARTICLE","title":"HP, Optiemus evaluating options after IT hardware PLI scheme 2.0","synopsis":"\u201cWe at Dixon would be looking at making an investment of Rs 250 crore that is required as part of the scheme, and maybe even more, over a period of six years,\u201d said Sunil Vachani, CMD, Dixon Technologies.","titleseo":"devices\/global-it-hardware-makers-should-use-pli-2-0-opportunity-industry","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":590,"shares":0,"engagementtimems":1875000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-05-17 16:45:42","lastupd":"2023-05-18 08:32:41","breadcrumbTags":["Pli sceheme","Pli 2.0","IT hardware","Dell","Dixon","Micromax","ICEA","mobile phone manufacturing","Ashwini Vaishnaw","devices"],"secinfo":{"seolocation":"devices\/global-it-hardware-makers-should-use-pli-2-0-opportunity-industry"}}" data-news_link="//www.iser-br.com/news/devices/global-it-hardware-makers-should-use-pli-2-0-opportunity-industry/100304530">