PLI timeline for mobile phone manufacturing may begin in FY22

New Dlhi: The government is considering making FY22 the first year of production instead of FY21 for the production-linked incentive (PLI) scheme for mobile phone manufacturing, senior government officials said. If approved, the move will bring relief to the likes of iPhone contract makers Foxconn and Wistron besides homegrown brands Dixon, Lava and Micromax. Meeting first-year PLI targets has become tough due to pandemic curbs and global supply chain disruptions, among other geopolitical factors.

“With the second wave of Covid hitting the country, there is serious thinking on the matter as companies are genuinely finding it difficult to meet their targets,” one of the officials told ET.

A change in the timeline will mean manufacturers need to post incremental production worth Rs 4,000 crore in this fiscal year, instead of Rs 8,000 crore in the second year. They will thus be able to avail of maximum incentives worth 6% during the year, experts said.