In a bid to provide a major boost to domestic electronics manufacturing, the government is planning to expand the list of domestic manufacturers targeted under its production-linked incentive (PLI) scheme for mobile phones to seven as opposed to the current five. The move could be undertaken through either the expansion of the present scheme or by releasing another package to include the additional ones.
The PLI scheme worth Rs 410 billion aims to generate additional production of nearly Rs 12 trillion over the next five years, will also have five international players that include four top contract manufacturers of US-based Apple (Foxconn Hon Hai, Rising Star, Wistron and Pegatron), apart from Korea-based Samsung.
On the domestic side, a total of seven companies had applied for the PLI scheme even though the original plan from the government is for five players. These seven entities are two companies each from Lava group (Lava and Sojo) and Dixon Technologies (Dixon and Padget Electronics), apart from single applications from Bhagwati (Micromax), Optiemus Infra and United Tele (of Karbonn group).
As per industry sources, the government is thinking of calling all the seven domestic companies that have applied for the incentive.