Defer PLI targets for global, domestic smartphone cos: Industry associations – The Economic Times

Clipped from: https://economictimes.indiatimes.com/industry/cons-products/electronics/defer-pli-targets-for-smartphone-cos/articleshow/82247086.cms

Synopsis–Nine out of ten companies under the PLI scheme for handsets could not meet the year one incremental sales turnover targets in the financial year ended March 2021 despite their best efforts, CII, Ficci and Assocham said in separate letters to the government.

Top industry associations have urged the government to defer incentive timeline for global and domestic smartphone makers under the production-linked incentive scheme in view of disruptions in the supply chain and delay in setting up of production lines due to the pandemic.

Nine out of ten companies under the PLI scheme for handsets could not meet the year one incremental sales turnover targets in the financial year ended March 2021 despite their best efforts, Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (Ficci) and Assocham said in separate letters to the government.

“Only Samsung, which was there in the manufacturing ecosystem of India for decades, could meet the target,” Ficci secretary general Dilip Chenoy has said in a letter to Ministry of Electronics and IT (MeitY) secretary Ajay Prakash Sawhney. The rest of the applicants including Foxconn, Winstron and Lava had to set up new capacities, the associations said.

“When Samsung has indeed met the targets, how do we divide the policy into two haves? Giving incentive to one and not to the rest of the applicants,” a senior government official had previously told ET.

The industry, however, pointed out that Samsung did not have to set up a new plant by importing from China, thus it did not have to bring in overseas technicians, or work around the government’s restrictions on imports from China.

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