May 17: According to Union Minister Ashwini Vaishnav, the Rs 17,000 crore Production Linked Incentive (PLI) Scheme for the IT hardware sector was approved by the Union Cabinet on Wednesday.
“For IT PLI, the budgetary outlay is Rs 17,000 crore. The tenure of the programme is six years,” Union Minister for IT and Telecom Ashwini Vaishnaw said after the cabinet meeting.
The plan for IT hardware covers all-in-one PCs, servers, laptops, tablets, and ultra-small form factor devices.
The initiative, according to the minister, is anticipated to result in increased output of Rs 3.35 lakh crore, increased investment of Rs 2,430 crore, and increased direct employment for 75,000 people during the course of the scheme.
According to Union Minister Mansukh Mandaviya, the Cabinet also authorised a fertiliser subsidy of Rs. 1.08 billion for the upcoming Kharif season.
The minister said that the government has decided not to raise the cost of fertilisers. Urea will cost Rs 70,000 crores, and di-ammonium phosphate (DAP) would cost Rs 38,000 crores, respectively, from the government.
“It is essential for our government that farmers in the country can get fertiliser on time & don’t have to bear the burden whenever there is a variation in the price of fertiliser in the international market. Last year the government budget spent Rs 2.56 lakh crore for fertiliser subsidy,”said Mandaviya.
The PLI project for IT hardware, with a budget of Rs 7,350 crore, was authorised by the government in February 2021 and covers the manufacturing of laptops, tablets, All-in-One PCs, and servers.
However, industry playres had requested the government to increase spending in that area.
The PLI Scheme, which was introduced in April 2020 with a concentration on the manufacturing of mobile phones, has significantly increased the nation’s electronics manufacturing.
The Union Cabinet has authorised PLI programme 2.0 for IT hardware, which builds on the success of the Production Linked Incentive programme (PLI) for mobile phones.