Sarkari Yojana
Production Linked Incentive Scheme (PLI) for IT Hardware Scheme 2.O
About Production Linked Incentive Scheme (PLI) for IT Hardware Scheme 2.O
MeitY, Government of India, rolled out the Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware to grow domestic manufacturing of IT hardware by giving production-linked incentives to eligible companies that manufacture Target Segment goods in India. Companies registered in India, whether classed as Global Companies, Hybrid (Global/Domestic) Companies, or Domestic Companies, receive financial incentives tied to incremental sales of manufactured Target Segment goods — Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USFF) devices — provided they manufacture qualifying products in India. A Project Management Agency (PMA) is responsible for running the scheme. Objectives:
- Grow domestic manufacturing of IT hardware products in the Target Segment (Laptops, Tablets, All-in-One PCs, Servers, and Ultra Small Form Factor devices) within India.
- Reward incremental investment in plant, machinery, equipment, Research and Development (R&D), and Transfer of Technology (ToT) linked to the Target Segment.
- Encourage greater localisation of components and sub-assemblies across the IT hardware value chain.
- Support employment generation tied directly to the manufacturing process.
- Raise the level of domestic value addition in IT hardware manufacturing.
Scheme Overview
Central Government
Ministry of Electronics and Information Technology
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Production Linked Incentive Scheme (PLI) for IT Hardware Scheme 2.O, applicants must satisfy the following conditions:
The applicant must be a company registered in…
The applicant must be a company registered in India.
The applicant must intend to manufacture goods that…
The applicant must intend to manufacture goods that fall under the Target Segment.
The applicant must clear the threshold criteria for…
The applicant must clear the threshold criteria for Incremental Investment.
The applicant must clear the threshold criteria for…
The applicant must clear the threshold criteria for Net Incremental Sales of manufactured target segment goods, measured over the base year.
The applicant must satisfy the qualification criteria based…
The applicant must satisfy the qualification criteria based on Consolidated Global Manufacturing Revenue for Financial Year 2021-22.
Under the Global Company category, the applicant's Consolidated…
Under the Global Company category, the applicant's Consolidated Global Manufacturing Revenue must exceed ₹50,00,00,00,000/- (5,000 crore) for the target segment, or ₹100,00,00,00,000/- (10,000 crore) for electronics hardware.
Under the Domestic Company category, the applicant's Consolidated…
Under the Domestic Company category, the applicant's Consolidated Global Manufacturing Revenue must exceed ₹1,00,00,000/- (10 crore) for the target segment, or ₹2,00,00,000/- (20 crore) for electronics hardware.
The applicant must localise, at a minimum, Printed…
The applicant must localise, at a minimum, Printed Circuit Board Assembly (PCBA) and the assembly of finished goods starting from the first year.
Benefits Provided
Production Linked Incentive Scheme (PLI) for IT Hardware Scheme 2.O provides the following benefits to eligible applicants:
The scheme offers a financial incentive on the net incremental sales of Target Segment goods manufactured in India.
Target Segment Products
Target Segment Products: Tangible benefits cover the manufacturing of Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USFF) devices.
Incentive Rates (Year 1 → Year 6):
Assembly of Laptops/Tablets/All-in-One PCs/USFF: 3% → 0%
Assembly of Servers: 3% → 0%
PCBA: 1.20% → 0.90%
Display Panel: 1.49% → 1.12%
Memory Modules: 0.95% → 0.71%
SSD: 0.95% → 0.71%
Cabinets/Chassis/Enclosures: 1.49% → 1.12%
SoC Processors designed in India: 3.24% → 2.43% (up to 3.78% → 2.84% for Servers)
Additional incentives are available for ATMP and IC manufacturing carried out in India
Investment Shortfall Relief
Where the investment shortfall is 40% or less of the threshold, the incentive still gets paid, subject to a partial deduction of X/2%.
Any incentive withheld is refunded, without interest, once the investment threshold is met in a subsequent year.
Duration: Incentives run for 6 consecutive years within the scheme's tenure
Frequency: Claims may be filed quarterly, half-yearly, or annually
Filing Deadline: Claims must be submitted within 9 months of the close of the relevant financial year
Documents Required
Applicants should keep the following documents ready before starting the application:
A completed Application Form, prepared as prescribed in…
A completed Application Form, prepared as prescribed in Annexure 3
Proof that the application fee (₹1,00,000/-, paid electronically)…
Proof that the application fee (₹1,00,000/-, paid electronically) has been settled
A self-certified statement of Consolidated Global Revenue for…
A self-certified statement of Consolidated Global Revenue for the Financial Year, following Annexure 4
A localisation plan together with the projected annual…
A localisation plan together with the projected annual incentive
An Integrity Compliance Certificate, as per Annexure 10
An Integrity Compliance Certificate, as per Annexure 10
An Independent Auditor's Certificate confirming the investment and…
An Independent Auditor's Certificate confirming the investment and sales figures
A Chartered Engineer Certificate for the physical verification…
A Chartered Engineer Certificate for the physical verification of plant and machinery
A certificate from the Managing Director/CEO regarding regulatory…
A certificate from the Managing Director/CEO regarding regulatory clearances
A Board Resolution accepting the scheme's terms and…
A Board Resolution accepting the scheme's terms and conditions
A declaration from the component supplier, where localisation…
A declaration from the component supplier, where localisation is achieved through a supply chain partner
An undertaking from the contract manufacturer confirming that…
An undertaking from the contract manufacturer confirming that double incentives have not been claimed.
How to Apply
Online Application
Applicants can apply for Production Linked Incentive Scheme (PLI) for IT Hardware Scheme 2.O through the online application process outlined below.
Head to the official portal for the Production…
Head to the official portal for the Production Linked Incentive (PLI) Scheme - 2.0 for IT Hardware.
Complete registration on the portal with the company's…
Complete registration on the portal with the company's details.
Locate and open the application form on the…
Locate and open the application form on the portal.
Provide all the necessary information, including investment plans,…
Provide all the necessary information, including investment plans, production targets, and financial data.
Attach all documents the portal specifies
Attach all documents the portal specifies.
Submit the application online ahead of the stated…
Submit the application online ahead of the stated deadline.
The Project Management Agency (PMA) reviews the submitted…
The Project Management Agency (PMA) reviews the submitted application.
Supply any clarifications or supplementary documents the PMA…
Supply any clarifications or supplementary documents the PMA asks for during review.
On approval, the applicant is issued an approval…
On approval, the applicant is issued an approval letter by the concerned authority.
Start production and lodge incentive claims each year
Start production and lodge incentive claims each year.
The Project Management Agency (PMA) checks the claims…
The Project Management Agency (PMA) checks the claims and clears them for payment.
Objectives
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Official Application & Website
Verify the latest eligibility, dates and instructions before applying.