Production Linked Incentive Scheme for Large Scale Electronics Manufacturing

Registered manufacturing companies, both domestic and foreign, can apply for this scheme. Companies must have valid GST registration, proper business structure (as proprietorship, partnership, or company), and manufacturing capability. Non-resident Indians and overseas entities with Indian subsidiaries are also eligible to apply.

The scheme provides financial incentives ranging from 4-6% on incremental sales of manufactured electronics products. The incentive is calculated based on the increase in sales compared to the base year and is provided for a period of 5 years. Different product categories may have different incentive rates.

The scheme covers mobile phones, electronic components, semiconductor components, telecom equipment, laptops, server equipment, and other specified electronics products. Companies must manufacture products from the approved list to be eligible for incentives under this scheme.

Different product categories have different minimum investment requirements. Generally, companies are required to make a minimum capital investment ranging from Rs.1 crore to Rs.100 crore depending on the product category and whether they are new entrants or existing manufacturers.

The Production Linked Incentive Scheme provides incentives for 5 financial years from the date of commencement of commercial production. After receiving in-principle approval, companies have a specific timeframe to begin manufacturing and claim their incentives.