Apple's Taiwan suppliers, Samsung apply for India's production-linked incentive (PLI) scheme scheme

As many as 22 domestic and international firms, including iPhone maker Apple's contract manufacturers as well as Samsung, Lava and Dixon have submitted the proposal under the government's Rs 41,000-crore production-linked incentive (PLI) scheme for mobile phone manufacturing.

Total of 22 companies have filed applications under the PLI scheme from various countries including Taiwan, South Korea, German and Austria as Friday was last day for submitting proposals. Over Rs 11 lakh crore worth mobile phones will be produced over the next five years, Union telecom and IT minister Ravi Shankar Prasad told reporters here on Saturday.

However, there were no applications from Chinese companies under the scheme which was announced by the Ministry of Electronics and Information Technology to promote domestic manufacturing of smartphones and components.

"India is not averse to investment from any country but companies will have to follow rules related to security clearance.", he said.

"There will be huge (mobile phone) production of around Rs 11 lakh crore, huge export of around Rs 7 lakh crore and great employment opportunity for 3 lakh direct and 9 lakh indirect people. I personally thank all the companies that have applied," the Minister said.

These proposals for mobile phone manufacturing are expected to create around 12 lakh jobs, 3 lakh direct and 9 lakh indirect employment opportunities, in the country. Domestic value addition is expected to grow from the current 15-20% to 35-40% in the case of mobile phones and 45-50% for electronic components.

"The benchmark for international companies was that they make mobile phones priced at or above Rs 15,000. International companies that have applied are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron," Prasad said.

Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones.

There is no price limit for Indian companies under the scheme.

In terms of revenue, Apple accounts for 37 % and Samsung 22 % for global sales of mobile phones and the PLI scheme is expected to increase their manufacturing base manifold in the country, an official statement issued by the ministry of electronics and IT (Meity) said.

The minister further said these companies will make thousands of crores investments based on the approval of their proposal.

Prasad said Indian companies, including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services and Optiemus Electronics, have applied under the scheme and 10 companies have filed applications under the Specified Electronic Components Segment.

The companies that have applied for components production of around Rs 45,000 crore include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync.

An empowered committee (EC), which includes NITI Aayog CEO Amitabh Kant will now finalise applications which will eligible to get benefit under the scheme.

On 2 June the Minister had released guidelines about-PLI Scheme to increasing electronics manufacturing by 2025 and create additional 1.5-2 million new jobs.