Government grants Foxconn Rs 357 crore under the PLI for mobile phones

This is the first time in which the government has approved an incentive for a foreign firm doing electronics production in the nation.

Under the Production-Linked Incentive plan for mobile phones, the government has sanctioned Rs 357.17 crore for Apple’s supplier Foxconn India and Rs 58.29 crore for Dixon Technologies subsidiary Padget Electronics.

This is the first instance in which the government has approved an incentive for a foreign firm doing electronics production in the nation.

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According to its additional investments and sales figures, Foxconn Hon Hai Technology India Mega Development Pvt. Ltd. is the first international business to have received approval under the target segment “Mobile Phones” (in the category of invoice values of Rs 15,000 and above) to receive incentive under mobile manufacturing for the time period 1 August 2021–31 March 2022.

“The incentive amount approved is Rs 357.17 crore,” Niti Ayog said in a statement on Tuesday.

The headquarters of the multinational Taiwanese electronics contract company Foxconn India are in Tucheng, New Taipei City.

The PLI plan for Large-Scale Electronics Manufacturing (LSEM) received investments totaling Rs 4,784 crore as of September 2022, resulting in total production of Rs 2,03,952 crore, including Rs 80,769 crore in exports.

From nearly 6 crore in 2014–15 to about 31 crore in 2021–22, mobile phone production has increased.

In the fiscal years 2021–2022, India exported mobile phones worth Rs. 45,000 crore.

“Padget Electronics Pvt Ltd, a domestic company, has been approved by the Empowered Committee to receive incentive under mobile manufacturing for the quarter January-March 2022 based on its incremental investments and sales figures under the target segment ‘Mobile Phones’. The incentive amount approved is Rs 58.29 crore,” the statement said.

Based on its increased investments and sales, the company has already been awarded Rs 53.28 crore under the PLI scheme for large-scale electronics manufacturing for the months of August through December 2021.

The Empowered Committee, made up of NITI Aayog CEO Param Iyer, DPIIT Secretary Anurag Jain, MeitY Secretary Alkesh Kumar Sharma, and others, evaluated the suggestions for incentive payments provided by the Ministry of Electronics and IT.