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Production Linked Incentive Scheme (PLI) for IT Hardware Scheme 2.O

PLIIT2.0

Revised Amounts and dates checked automatically against the official listingHow entries are compiled

Program brief

BenefitQuarterly, half-yearly, or annually
Form of supportCash, paid into the bank account
LevelCentral
Run byMinistry of Electronics and Information Technology
FieldBusiness & Entrepreneurship
How to applyOnline
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Contents of this entry
  1. Overview
  2. Benefits
  3. Eligibility
  4. Documents
  5. Application steps
  6. Common application errors
  7. Questions and answers

Overview

The Production Linked Incentive Scheme 2.0 offers financial incentives for manufacturing IT hardware in India. Companies registered in India can apply. The official listing does not provide a last date, so check the official portal for updates.

Production Linked Incentive Scheme (PLI) for IT Hardware Scheme 2.O

The Production Linked Incentive Scheme 2.0 aims to boost the manufacturing of IT hardware in India. It is managed by the Ministry of Electronics and Information Technology.

This scheme provides financial incentives to eligible companies for producing laptops, tablets, servers, and similar devices.

By encouraging local manufacturing, it aims to create jobs and enhance the domestic value chain in IT hardware.

Further facts from the listing

Scheme typeCentral Sector Scheme
Scheme forInfra
Incentive frequencyQuarterly, half-yearly, or annually

Benefits

Award value:

  • Incentive rates vary from 3% to 0% for assembly of laptops, tablets, and servers over six years.
  • Incentive rates for PCBA range from 1.20% to 0.90%.
  • Display panels receive 1.49% to 1.12% incentives.
  • Memory modules and SSDs receive 0.95% to 0.71% incentives.
  • Cabinets/chassis/enclosures receive 1.49% to 1.12% incentives.
  • SoC processors designed in India receive 3.24% to 2.43% (up to 3.78% to 2.84% for servers).

The incentive is available for six consecutive years, and claims can be filed quarterly, half-yearly, or annually.

Eligibility

Age
Up to 80 years

Eligibility:

  • Academic: Must be a registered company in India.
  • Income: Global companies need revenue above Rs. 50,00,00,00,000/- (5,000 crore) for the target segment.
  • Income: Domestic companies need revenue above Rs. 1,00,00,000/- (10 crore) for the target segment.
  • Age: Maximum age of the applicant is 80 years.
  • Category: Companies must manufacture goods in the target segment.

Two cases, worked through

A company registered in India that manufactures laptops and meets the revenue criteria is eligible to apply. A company that does not manufacture any goods in the target segment is not eligible.

Documents

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Application steps

Application steps:

  1. Visit the official portal for the scheme.
  2. Register using company details.
  3. Access and fill the application form.
  4. Upload all required documents.
  5. Submit the application online.
  6. The application will be evaluated by the Project Management Agency.
  7. Provide additional documents if requested.
  8. Upon approval, receive an approval letter.
  9. Start production and file claims for incentives.

Common application errors

Common application errors:

  • Missing application fee payment proof.
  • Incomplete or incorrect application form.
  • Failure to provide necessary documents for verification.

Questions and answers

What products are included in the target segment?

The target segment includes laptops, tablets, All-in-One PCs, servers, and Ultra Small Form Factor devices.

Who can apply for this scheme?

Any company registered in India that proposes to manufacture goods in the target segment can apply.

Are there localization requirements?

Yes, applicants must localize Printed Circuit Board Assembly and finished goods assembly from the first year.

How is the incentive calculated if there is an investment shortfall?

If the investment shortfall is 40% or less, the applicant remains eligible but the incentive will be reduced.

Can incentives be claimed for products made by a contract manufacturer?

Yes, provided the arrangement is exclusive and the contract manufacturer has not claimed incentives for the same goods.

How long is the incentive available?

The incentive is available for six consecutive years.

What is the filing deadline for claims?

Claims must be filed within 9 months from the end of the relevant financial year.

How can I check the status of my application?

Check the official portal for updates regarding application status.

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