32 Firms Apply For PLI 2.0; HP, Dell, Lenovo To Manufacture Laptops; Apple Not Among Them

A host of companies have shown interest in the PLI Scheme 2.0 for IT hardware for manufacturing laptops, PCs and servers. Union IT Minister Ashwini Vaishnaw in a latest press conference revealed that the scheme has received an overwhelming response with 32 applicants so far. Tech giants like HP, Dell, and Lenovo have applied under the scheme, however, the world's largest company in terms of market capitalisation, Apple Inc was not among them.

Vaishnaw told reporters that the scheme received an overwhelming response and companies are happy to come to India for manufacturing and design.

He highlighted the companies among the applicants were HP, Dell, Lenovo, Asus, Acer, Thompson, VVDN, and HP Enterprises among others. However, he revealed that Apple Inc did not apply in the framework.

According to Vaishnaw, PLI 2.0 will likely record its expected incremental production of Rs 3.35 lakh crore and expected direct employment of 75,000.

He said, the production of PCs, laptops, and services will increase in the coming months, and India is set to become a trusted supply chain partner and value-added partner.

HP, Dell, Lenovo, Thompson, Acer, and Asus will be manufacturing laptops, while HP, VVDN, and Lenovo to manufacture servers.

The Production-Linked Incentive (PLI) Scheme 2.0 for IT Hardware for Enhancing India's Manufacturing Capabilities and Enhancing Exports was launched in May this year with an outlay of Rs 17,000 crore.

The PLI Scheme 2.0 for IT Hardware is expected to result in broadening and deepening of the manufacturing ecosystem by encouraging the localisation of components and sub-assemblies and allowing for a longer duration to develop the supply chain within the country. Additionally, the scheme provides increased flexibility and options for applicants and is tied to incremental sales and investment thresholds to further incentivise growth. Furthermore, semiconductor design, IC manufacturing, and packaging are also included as incentivised components of the PLI Scheme 2.0 for IT Hardware.

The Scheme shall extend an average incentive of around 5% on net incremental sales (over base year) of goods manufactured in India and covered under the target segment, to eligible companies, for six (6) years. The Target Segment under PLI shall include (i) Laptops (ii) Tablets (iii) All-in-One PCs (iv) Servers and Ultra Small Form Factor (USFF).

As per Meity's website, support under the Scheme shall be provided to companies based on the eligibility criteria laid down, for manufacturing of goods (covered under the target segment) in India.