The government on Tuesday approved incentives worth `415.5 crore to Foxconn Hon Hai Technology and Dixon Technologies owned Padget Technologies for meeting incremental sales and investment targets under the mobile phone production-linked incentive (PLI) scheme for FY22.
Among the global players who participated in the PLI scheme, Foxconn has become the first company to have received the approval for the incentives. The company, which is one of the contract manufacturers of iPhones in the country, will receive incentives worth `357.17 crore for the August 2021– March 2022 period.
Amongst the domestic companies, Padget has got approval for incentives worth `58.29 crore for the January-March 2022 quarter. Earlier, Padgett had received incentives worth `53.28 crore for the August-December 2021 period. The PLI scheme for smartphones has set different targets for global players like Apple and Samsung and Indian players like Dixon, Lava and others. In the first year global players were required to make an investment of `250 crore and manufacture goods worth `4,000 crore more than the previous year. The phones made by global players should have an invoice value of over `15,000. In the case of Indian players, the investment target is `50 crore and they were required to manufacture phones worth `500 crore in the first year.
Samsung was the only firm which had met the targets for FY21 among the global firms, but it is yet to receive the incentive amount as the government has found some discrepancies in the invoices raised by the company. For FY22, the company has yet to submit the invoices.
The PLI scheme on large-scale electronic manufacturing, which primarily includes the manufacturing of mobile phones and specified electronic components, has a total outlay of `40,951 crore for five years. The incentive under the scheme ranges around 4-6% annually. Across all the 14 PLI schemes launched by the government, the electronics manufacturing PLI scheme has been the most successful one on the back of the rise in mobile phone production and exports. In FY22, the country exported about `45,000 crore worth of mobile phones. In the current fiscal between April-November, mobile phone exports have already crossed `50,000 crore, which is more than double the exports made during the same period last year.
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