PLI Scheme: Global Electronics & Hardware Manufacturers Seek PLI Payments

New Delhi: Numerous global electronics and equipment manufacturers have petitioned the Center for early release of payments owed to them under an ambitious manufacturing-related incentive (PLI) scheme, people with direct knowledge of the matter told ET.

According to them, the delay in payment leads to uncertainty about the future investment plans of leading corporations, including large computer companies. Dell, iphone manufacturer Wistronelectronics manufacturer Dixon and Netweb Technologies among others.

The sources added that in addition to a series of petitions sent to the Ministry of Electronics and Information Technology (MeitY) asking for accelerated bounty payments, representatives of these companies were scheduled to meet with the ministry’s secretary on Wednesday to discuss their case.

Meanwhile, several people in the IT ministry, as well as company executives, told ET that the delay was due to the fact that the central agency tasked with reviewing and issuing the stimulus – the Industrial Finance Corporation of India () – was unable to complete the required audit of the claims.

β€œIn the last six months alone, the auditors at IFCI have changed three times, and every time a new team is appointed, the process has to start from scratch,” a person with direct knowledge said. β€œ(Beneficiaries) must explain the incremental sales, verify data and other investments, and then justify why they are eligible for the incentive,” the source said.

IFCI and MeitY did not respond to email requests from ET asking for clarification on the reasons for the delay in incentive payments.

Discover stories that interest you

Dixon and Wistron did not respond to questions about this until the time of publication. A Dell spokesperson declined to comment on the matter.

Netweb Technologies, one of the companies that won the right for Rs 7,350 crore MeitY equipment. PLI circuit, stated that she “worked overtime to meet her set goals for the PLI”. The company is “working with the government and its agencies to resolve filed claims faster as this will help motivation and momentum,” Sanjay Lodha, co-founder of Netweb Technologies, said in an email response.

Officials who acknowledged receipt of incentive pay applications from global manufacturers were unable to quantify the total amount due.

Declining to comment on the reasons for the delay, the official, speaking on condition of anonymity, said: “We have received submissions from companies and are trying to work out a solution to give them these incentives.”

flagship scheme

PLI is one of the Center for Reduction’s flagship schemes.

to export and increase domestic production of a number of goods, such as mobile phones, related accessories, servers, routers, switches, telecommunications products, textiles, medical equipment and solar panels. The first of these PLI schemes was launched in March 2020. Official data show that between 2015-2016 and 2020-2021, the cumulative annual growth rate (CAGR) of local electronic goods production increased by 17.9%.

ET previously reported that the Indian Cellular and Electronics Association (ICEA), a group of electronics and equipment manufacturers, applied to the Prime Minister’s Office on June 23 for “immediate payment” of all incentives and fees owed to the industry under various programs including PLI scheme and other export promotion plans.

Stay on top technology as well as startup news it is important. subscribe to our daily newsletter with the latest and must-read tech news delivered straight to your inbox.