The government has proposed an increase in the production linked incentive scheme's financial outlay by 2.5 times to around Rs 19,000 crore and doubling the incentive rates. The motive behind this is to attract multinational companies such as Dell, HP, Apple, Samsung and Asus to step up manufacturing in the country.
According to a draft of the revised scheme, — PLI for IT Hardware 2.0 — will offer incentives of 4-5.75% over five years, compared to the current 1-4% over four years, officials told ET. Its financial outlay will touch about Rs 19,000 crore from Rs 7,350 crore, they said.
The new scheme will be discussed with businesses and stakeholders before it is brought to the cabinet for approval. All companies that are already taking advantage of the existing scheme will be able to participate in PLI 2.0.
An official told that “the average incentives for companies have been increased to 5.34% from 2.21% over five years.”