The government is considering boosting incentives for companies that surpass their production, sales, and export goals of phones every financial year under the PLI scheme.
This move comes as some companies that have consistently achieved their targets are requesting additional rewards as a “good faith” measure.
The PLI scheme, which was introduced on April 1, 2020, offers incentives of 4% to 6% on incremental sales over the base year.
The government is considering boosting incentives for companies that surpass their production, sales, and export goals of phones every financial year under the mobile phone production-linked incentive (PLI) scheme. This move comes as some companies that have consistently achieved their targets are requesting additional rewards as a “good faith” measure.
A government official told The Economic Times, “The decision on disbursement on production above the ceiling limit is pending at the empowered committee level. We are looking at how to approach this issue best and hope to arrive at a solution soon.”
The PLI scheme, which was introduced on April 1, 2020, offers incentives of 4% to 6% on incremental sales over the base year. Although the scheme was initially set to run until 2024-25, it was extended by a year to accommodate requests from companies that struggled to meet their production targets due to COVID-19 lockdowns.
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Out of the 32 companies approved under the scheme, seven are greenfield projects, and 25 are brownfield projects. Companies can apply for incentives one year after meeting their production targets. Those that hit their targets receive a 6% incentive in the first two years, 5% in the next two years, and 4% in the fifth year.
The cabinet had anticipated a production value of Rs 8.12 lakh crore over the five years of the PLI scheme, with a target of Rs 4.39 lakh crore by March 2024. However, by March 2024, production had already surpassed this target, reaching Rs 4.8 lakh crore, according to government’s internal estimates.
For the current fiscal year, the production value target is Rs 6.50 lakh crore, with nearly 80% of this goal achieved so far.
The cabinet had projected total exports of Rs 4.87 lakh crore over the five-year tenure of the scheme, with a target of Rs 2.63 lakh crore by March 2024. Exports reached approximately Rs 2.5 lakh crore by that date, and for the current fiscal year, the export target is Rs 3.9 lakh crore, with Rs 2.6 lakh crore already achieved.
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Ayushi Jain
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