Phone makers approach Centre to push timeline of PLI scheme by a year

Phone manufacturers have urged the Centre to push the five-year production-linked incentive (PLI) scheme timeframe by a year.

In a letter to the government, the India Cellular & Electronic Association (ICEA) proposed that the FY 2020-21 be considered as "zero year" or "year of preparation", with no incentive handed out for any incremental production this year to compensate for disruptions due to the COVID-19 pandemic that delayed the production output, dragging it behind stipulated targets.

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As per ICEA's letter dated March 4, incentives should begin from FY22, and end in FY26, instead of FY25, "with no other change in the scheme, keeping the yearly expenditure envelope unchanged," the Economic Times reported.

The letter further added that investments made so far must be combined with those made in FY22 to be considered for first year targets.

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"Any company (read: Samsung) that has achieved both investment and revenue targets during the current financial year due to their ability to exploit existing facilities, production lines, or having been established in India for a long time, should be given the incentives as per the current Scheme," ICEA said.

Of the 16 companies given PLI, Samsung was the only one to fulfil the output goals stipulated under the scheme for the first year ending March 31, the publication had reported earlier.

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