A total production of ₹1.6-lakh crore expected over the next four years.

Nineteen companies, including Dell, ICT (Wistron), Flextronics, Rising Stars Hi-Tech (Foxconn) and Lava, have filed for the Production-Linked Incentive (PLI) scheme under the information technology hardware category.

The scheme, which was notified on March 3, was open for filing of applications till April 30.

According to the Ministry of Electronics and IT (MeitY), 14 companies have filed applications under the category ‘Domestic Companies’. These include Dixon, Infopower (a joint venture of Sahasra and MiTAC), Bhagwati (Micromax), Syrma, Orbic, Neolync, Optiemus, Netweb, VVDN, SmileElectronics, Panache Digilife, HLBS, RDP Workstations and Coconics.

Electronics hardware manufacturers that have applied under the IT Hardware category are Dell, ICT (Wistron), Flextronics, Rising Stars Hi-Tech (Foxconn) and Lava, the statement stated.

These companies are expected to expand their manufacturing operations such that they grow into national ‘champion companies’ in IT Hardware production, the statement indicated.

The scheme is expected to lead to a total production of about ₹1.6-lakh crore over the next four years, MeitY stated in a statement. Of the total production, IT hardware companies plan to produce over ₹1.35-lakh crore, and domestic companies over ₹25,000 crore.

The PLI for IT hardware extends to eligible companies an incentive of four per cent to two/one per cent on the net incremental sales (over the base year of 2019-20) of goods under target segments — laptops, tablets, all-in-one personal computers (PCs) and servers - that are manufactured in India for four years (2021-22 to 2024-25).

According to MeitY, the scheme is expected to promote exports, of the total production of ₹1.6-lakh crore in the next four years, more than 37 per cent will be exports worth ₹60,000 crore. It will also bring additional investment in electronics manufacturing of ₹2,350 crore.

The scheme is expected to generate around 37,500 direct employment opportunities in the next four years and indirect jobs nearly three times that number. The domestic value addition is expected to grow from the current 5-12 per cent to 16-35 per cent, it added.