PLIIT2.0

The scheme aims to promote domestic manufacturing of Laptops, Tablets, All-in-One PCs, Servers, and Ultra Small Form Factor (USFF) devices in India through production-linked financial incentives.

The scheme "Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware" has been launched by the Ministry of Electronics and Information Technology (MeitY), Government of India. The aim is to promote domestic manufacturing of IT hardware products by providing production-linked incentives to eligible companies manufacturing target segment goods in India. Through this scheme, financial incentives on incremental sales of manufactured target segment goods – covering Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USFF) devices – are provided to Indian-registered companies across three categories: Global Companies, Hybrid (Global/Domestic) Companies, and Domestic Companies, that manufacture qualifying products in India. The scheme is implemented by a Project Management Agency (PMA).

Objectives:

• To boost domestic manufacturing of IT hardware products under the Target Segment (Laptops, Tablets, All-in-One PCs, Servers, and Ultra Small Form Factor devices) in India.
• To incentivise incremental investment in plant, machinery, equipment, Research and Development (R&D), and Transfer of Technology (ToT) related to the Target Segment.
• To promote localisation of components and sub-assemblies in the IT hardware value chain.
• To encourage employment generation directly related to the manufacturing process.
• To improve domestic value addition in the manufacturing of IT hardware.

• The applicant must be a company registered in India.
• The applicant should propose to manufacture goods covered under the Target Segment.
• The applicant must meet the threshold criteria of Incremental Investment.
• The applicant must meet the threshold criteria of Net Incremental Sales of manufactured target segment goods over the base year.
• The applicant should meet the qualification criteria based on Consolidated Global Manufacturing Revenue for Financial Year 2021-22.
• The applicant under the Global Company category must have a Consolidated Global Manufacturing Revenue greater than ₹50,00,00,00,000/- (5,000 crore) for the target segment or greater than ₹100,00,00,00,000/- (10,000 crore) for electronics hardware.
• The applicant under the Domestic Company category must have a Consolidated Global Manufacturing Revenue greater than ₹1,00,00,000/- (10 crore) for the target segment or greater than ₹2,00,00,000/- (20 crore) for electronics hardware.
• The applicant must localise at least Printed Circuit Board Assembly (PCBA) and assembly of finished goods from the first year.

> The scheme provides a financial incentive for the net incremental sales of goods manufactured in India and covered under the target segment.

• Target Segment Products: The tangible benefits apply to the manufacturing of Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USSF) devices.
• Incentive Rates (Year 1 → Year 6):

• Assembly of Laptops/Tablets/All-in-One PCs/USFF: 3% → 0%

• Assembly of Servers: 3% → 0%
• PCBA: 1.20% → 0.90%
• Display Panel: 1.49% → 1.12%
• Memory Modules: 0.95% → 0.71%
• SSD: 0.95% → 0.71%
• Cabinets/Chassis/Enclosures: 1.49% → 1.12%
• SoC Processors designed in India: 3.24% → 2.43% (up to 3.78% → 2.84% for Servers)
• Additional incentives available for ATMP and IC manufacturing in India

• Investment Shortfall Relief

• If investment shortfall is ≤40% of the threshold, incentive is still payable (with partial deduction of X/2%)
• Withheld incentive is refunded without interest once the investment threshold is met in a later year.

> Duration: Incentive given for 6 consecutive years within the scheme tenure

> Frequency: Claims can be filed quarterly, half-yearly, or annually

> Filing Deadline: Claims must be filed within 9 months from the end of the relevant financial year