Setback for PLI scheme on IT hardware as peeved manufacturers cut investment commitments

New Delhi: Nearly half of the Rs 7325-crore budget allocated for the production-linked incentive (PLI) scheme for IT hardware is likely to go unused with the applicant companies such as Dell, Wistron, Flextronics, Foxconn cumulatively committing to produce far lower than expected by the government.

Manufacturers are piqued over the low incentive structure of the scheme which offers only 1%-4% reward and does not compensate for the disabilities of shifting production to India of duty-free products like laptops, tablets and data servers from countries like China and Taiwan.