Production-Linked Incentive scheme reset: Govt may shift smartphone PLI by a year

The government may tweak the production-linked incentive (PLI) scheme for smartphones to make sure most of the companies that could not meet the first year incremental sales target in FY21 do not miss out on the financial incentives.

The ministry of electronics and information technology (MeitY) is likely to extend the tenure of the incentive scheme from five to six years, leaving the outlay, investment and sales targets and incentive structure unchanged. Companies that did not meet the FY21 incremental sales target now have time till FY26; FY21 will now be treated as Year Zero year meant to make preparations.