Mobile Manufacturing: Dixon Subsidiary Bags First Ever Disbursement Under Govt's PLI Scheme

In the first-ever disbursement under the Production-Linked Incentive (PLI) schemes forLarge-Scale Electronics Manufacturing, the Empowered Committee headed by NITI Aayog CEO has approved incentive for mobile manufacturing to the subsidiary of Indian contract manufacturer Dixon Technologies.

The company will be eligible to receive around Rs 53 crore for the first quarter of operation between October to December 2021, as incentive on incremental sales.

The incentive was approved for Padget Electronic Pvt Ltd, a wholly owned subsidiary of Dixon Technologies. The firm has its manufacturing facilities in Uttar Pradesh's Noida.

So far, two firms, Dixon Technologies and Samsung, have submitted the paperwork for claiming incentives, while others including Apple contract manufacturers Hon Hai (Foxconn) and Wistron are in the process of doing so, reports Economic Times.

The PLI scheme on Large-Scale Electronic Manufacturing, which includes manufacturing of mobile phones and manufacturing of specified electronic components, was approved in March 2020, with a total outlay of Rs 38,645 crores.

The scheme is expected to bring in additional production to the tune of Rs 10,69,432 crore and generate employment for 7,00,000 people.

The PLI scheme for Large-Scale Electronics Manufacturing, mapped to the Union Ministry of Electronics and Information Technology (MEITY), is expected to make India a competitive destination for electronics manufacturing and give a boost to Aatmanirbhar Bharat while creating more global champions.

The government had approved 32 beneficiaries under the PLI scheme for Large-Scale Electronics Manufacturing, of which 10 (five global and five domestic companies) were approved for mobile manufacturing.

For the quarter ending June 2022, the applicants under this PLI scheme had undertaken sales of Rs 1,67,770 crore, including export of Rs 65,240 crore, a NITI Aayog release said on Friday (9 September).

This PLI scheme has also generated employment of 28,636. Over the last 3 years, exports have grown by 139 per cent.

The applications for incentives by the other beneficiaries will also be considered for approval soon, the NITI Aayog said.