Cabinet approves Production Linked Incentive scheme for IT hardware, pharmaceuticals
New Delhi [India], February 24 (ANI): The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the Production Linked Incentive (PLI) scheme for IT hardware and for pharmaceuticals over a period of Financial Year 2020-21 to 2028-29.
The scheme for IT Hardware proposes a production-linked incentive to boost domestic manufacturing and attract large investments in the value chain of IT Hardware.
The Target Segments under the proposed Scheme include laptops, tablets, All-in-One PCs and servers.
According to a release by the Cabinet, the scheme will extend an incentive of 4 per cent to 2 per cent/1 per cent on net incremental sales (over base year i.e. 2019-20) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of four (4) years. It is likely to benefit 5 major global players and 10 domestic champions in the field of IT Hardware manufacturing including Laptops, Tablets, All-in-One PCs, and Servers.
The total cost of the proposed scheme is approximately Rs 7,350 crores over 4 years, which includes an incentive outlay of Rs 7,325 crores and administrative charges of Rs 25 crores.
The scheme for Pharmaceuticals will benefit domestic manufacturers, help in creating employment and is expected to contribute to the availability of a wider range of affordable medicines for consumers. It is also expected to promote the production of high-value products in the country and increase the value addition in exports.
The total incremental sales of Rs 2,94,000 crores and total incremental exports of Rs 1,96,000 crores are estimated during six years from 2022-23 to 2027-28. It is expected to generate employment for both skilled and unskilled personnel, estimated at 20,000 direct and 80,000 indirect jobs as a result of growth in the sector.
The scheme is also expected to bring in investment of Rs 15,000 crores in the pharmaceutical sector. It will be part of the umbrella scheme for the Development of the Pharmaceutical Industry. (ANI)
