The much-delayed incentives under the production-linked incentive (PLI) scheme for mobile manufacturers is set to be released, giving huge relief to the likes of Samsung and .
The empowered group is scheduled to meet on September 9 to take a final call on the submissions of the selected companies, officials said.
As per officials in the Ministry of Electronics and IT (Meity), so far Indian contract manufacturer Dixon and Korean major Samsung have submitted the paperwork around production targets while others including Apple contract manufacturers Hon Hai (Foxconn) and Wistron are in the process.
“Those who have submitted the claims, will be given the incentives after approval from the empowered group,” said an official.
A major reason for the delay in disbursing incentives, according to an industry executive, is the determination of the factory price of the mobile phones manufactured under the scheme, especially for smartphone brands doing their own manufacturing, like Samsung, said industry executives.
The calculation of the total value of smartphones manufactured is determined using the price, but in the case of a brand doing its own manufacturing, the final price will be inclusive of branding and marketing costs, operational costs, and more. However, for contract manufacturers like Dixon, it will only be the costs incurred to manufacture. This has now been ironed out, they said.
The official did not give details on the incentive amount for various companies as it depends on the claims filed by an individual firm. But as per the incentive outlay, the government will be giving out cash backs of ₹900 crore in 2021-22 and ₹4,578 crore in 2022-23.
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