Nineteen companies, including Dell, ICT (Wistron), Flextronics, Rising Stars Hi-Tech (Foxconn) and Lava, have applied for a Production Incentive Program (PLI) in the computer hardware category.

The program, notified on March 3, was open for filing applications until April 30.

National companies

According to the Ministry of Electronics and Informatics (MeitY), 14 companies have submitted 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, Smile Electronics, Panache Digilife, HLBS, RDP Workstations and Coconics.

The electronics manufacturers who applied in the Computer Hardware category are Dell, ICT (Wistron), Flextronics, Rising Stars Hi-Tech (Foxconn) and Lava, the release said.

These companies are expected to expand their manufacturing activities to become national “champion companies” in the production of computer hardware, the statement said.

The program is expected to lead to total production of around 1.6 lakh crore over the next four years, MeitY said in a statement. Out of total output, computer hardware companies plan to produce more than 1.35 lakh crore and domestic companies more than 25,000 crore.

The LIP for Computer Hardware extends to qualifying businesses a four to two / one percent incentive on net incremental sales (over the 2019-20 base year) of products in target segments – laptops, tablets, everything. in one a personal computer (PC) and servers – which are made in India for four years (2021-22 to 2024-25).

Promote exports

According to MeitY, the program should promote exports; of the total production of ₹ 1.6 lakh crore over the next four years, over 37 percent will be exports worth ₹ 60,000 crore. This will also result in an additional investment in electronics manufacturing of ₹ 2350 crore.

The program is expected to generate around 37,500 direct jobs over the next four years and indirect jobs nearly three times that number. National added value is expected to rise from 5% to 12% currently to 16% to 35%, he added.