Dixon Technologies is planning to invest Rs 2.5 billion and hire 2,500 people over next 8-9 months in an effort to expand operations. The company plans to do this under the product linked incentive (PLI) scheme recently unveiled by the government.
Earlier on April 1, 2020, the government notified three schemes comprising total incentives of around Rs 480 billion to boost electronics manufacturing in the country. These schemes were opened up by the government yesterday.
The PLI Scheme seeks to extend an incentive of 4-6 per cent on incremental sales of goods manufactured in India and covered under the target segments to the eligible companies for five years subsequent to the base year.
According to industry estimates, mobile manufacturing companies can potentially get an incentive of around Rs 75 billion if they scale up production to around Rs 1.5 trillion over the next five years under the PLI scheme.
The government has started inviting applications for the same through the scheme implementing partner Industrial Finance Corporation of India (IFCI).
Under the scheme, the government aims to attract top 5 global mobile manufacturing companies who control 80 per cent of the global market in the segment. Further, the government seeks to promote five local companies in expanding their business under this scheme.