Global hardware players in talks with local firms to manufacture under PLI

Top global hardware brands, including Asus India, Acer India, HP, and Lenovo, are in discussions with local companies that have applied for a revised production-linked incentive (PLI) scheme for manufacturing notebooks, desktops, and servers in India, according to a report by The Economic Times (ET). The companies aim to help India achieve a 70 per cent local output target.

Last week, Minister of State for Electronics and IT Rajeev Chandrasekhar stated that the Centre aims to meet up to 70 per cent of the country's IT hardware requirements through local production in the next three years and reduce dependency on imports from non-trusted sources.

"At present, almost 80 per cent of our supplies to the digital ecosystem come from imports. We want to make sure whatever the sources are, they are trusted. As part of emphasising trust, it is clear that the Indian component of that supply chain will have to grow. Today, 8-10 per cent of our supply requirements come from India; we want to increase that to 65-70 per cent in the next three years," the minister said.

As many as 40 companies, including Dell, HP, and Lenovo, have applied for the IT hardware PLI scheme with a commitment to produce personal computers, laptops, tablets, servers, and other equipment worth Rs 4.65 lakh crore during the scheme period.

The news agency PTI later reported that around 30 out of 40 applicants are expected to qualify for the Rs 17,000-crore PLI scheme. Against the budgetary allocation of Rs 17,000 crore for the scheme, applicants have projected incentives to the tune of Rs 22,890 crore.

Apple's supplier Foxconn has also applied for incentives through one of its subsidiaries. Among the domestic firms applying for the scheme are Padget (Dixon), VVDN, Netweb, Syrma, Optiemus, Sahasra, Neolync, Panache, Sojo (Lava), and Kaynes Technologies.

The scheme is expected to generate direct employment for 75,000 professionals in electronic manufacturing and attract an incremental investment of Rs 5,000 crore.

According to ET, Acer is in the advanced phase to expand its manufacturing presence in India. It has partnered with Dixon Technologies for local production under the first version of the PLI scheme. Asus, on the other hand, is planning to establish a manufacturing facility in Chennai.

(With agency inputs)