Focus: GS II: Government Policies and Interventions
Why in News?
Recently, the Operational Guidelines of Production Linked Incentive Scheme 2.0 for IT Hardware has been finalized.
Production Linked Incentive Scheme 2.0
- The scheme aims to promote domestic manufacturing and attract investments in the value chain.
- The PLI 2.0 Scheme covers Laptops, Tablets, All-in-One PCs, Servers, and Ultra Small Form Factor.
- Eligible companies, both global and domestic, will receive support for manufacturing goods in India within the specified target segments.
- Applicants will be classified as either Global, Hybrid (Global/Domestic), or Domestic based on their company’s origin.
- Applicants will be ranked based on eligibility criteria outlined in the scheme guidelines.
- Selection of applicants in each category will depend on their ranking and overall PLI projection, subject to budget availability.
Tenure and Base Year:
- Incentives provided under the PLI 2.0 Scheme will be applicable for a period of 6 years.
- The base year for calculating net incremental sales of manufactured goods is the financial year 2022-23.
- Incentives granted to companies will be based on the net incremental sales of manufactured goods compared to the base year.
- Maximum incentive amounts are capped at INR 45 billion for global companies, INR 22.50 billion for hybrid (global/domestic) companies, and INR 5 billion for domestic companies.