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Production Linked Incentive Scheme (PLI) for IT Hardware Scheme 2.O
Ministry of Electronics and Information Technology
Last updated:
Overview
The scheme aims to promote domestic manufacturing of Laptops, Tablets, All-in-One PCs, Servers, and Ultra Small Form Factor (USFF) devices in India through production-linked financial incentives.
Details
Description
The scheme "Production Linked Incentive PLI Scheme 2.0 for IT Hardware" has been launched by the Ministry of Electronics and Information Technology MeitY , Government of India. The aim is to promote domestic manufacturing of IT hardware products by providing production-linked incentives to eligible companies manufacturing target segment goods in India. Through this scheme, financial incentives on incremental sales of manufactured target segment goods — covering Laptops, Tablets, All-in-One Personal Computers PCs , Servers, and Ultra Small Form Factor USFF devices — are provided to Indian-registered companies across three categories: Global Companies, Hybrid Global/Domestic Companies, and Domestic Companies, that manufacture qualifying products in India. The scheme is implemented by a Project Management Agency PMA . Objectives: - To boost domestic manufacturing of IT hardware products under the Target Segment Laptops, Tablets, All-in-One PCs, Servers, and Ultra Small Form Factor devices in India. - To incentivise incremental investment in plant, machinery, equipment, Research and Development R&D , and Transfer of Technology ToT related to the Target Segment. - To promote localisation of components and sub-assemblies in the IT hardware value chain. - To encourage employment generation directly related to the manufacturing process. - To improve domestic value addition in the manufacturing of IT hardware.
Exclusions
• <br>
Benefits
• Target Segment Products: The tangible benefits apply to the manufacturing of Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USSF) devices.
• Incentive Rates (Year 1 → Year 6):
• Investment Shortfall Relief
• If investment shortfall is ≤40% of the threshold, incentive is still payable (with partial deduction of X/2%)
• Withheld incentive is refunded without interest once the investment threshold is met in a later year.
Eligibility Criteria
1. The applicant must be a company registered in India.
2. The applicant should propose to manufacture goods covered under the Target Segment.
3. The applicant must meet the threshold criteria of Incremental Investment.
4. The applicant must meet the threshold criteria of Net Incremental Sales of manufactured target segment goods over the base year.
5. The applicant should meet the qualification criteria based on Consolidated Global Manufacturing Revenue for Financial Year 2021-22.
6. The applicant under the Global Company category must have a Consolidated Global Manufacturing Revenue greater than ₹50,00,00,00,000/- (5,000 crore) for the target segment or greater than ₹100,00,00,00,000/- (10,000 crore) for electronics hardware.
7. The applicant under the Domestic Company category must have a Consolidated Global Manufacturing Revenue greater than ₹1,00,00,000/- (10 crore) for the target segment or greater than ₹2,00,00,000/- (20 crore) for electronics hardware.
8. The applicant must localise at least Printed Circuit Board Assembly (PCBA) and assembly of finished goods from the first year.
9. <br>
Application Process
Step 1: Step 1: Visit the official portal of the Production Linked Incentive (PLI) Scheme - 2.0 for IT Hardware.
Online
Step 1: Visit the official portal of the Production Linked Incentive (PLI) Scheme - 2.0 for IT Hardware.
Step 2: Step 2: Register on the portal using the company details.
Online
Step 2: Register on the portal using the company details.
Step 3: Step 3: Access the application form available on the portal.
Online
Step 3: Access the application form available on the portal.
Step 4: Step 4: Fill in all required details, including investment, production plans, and financial information.
Online
Step 4: Fill in all required details, including investment, production plans, and financial information.
Step 5: Step 5: Upload all required documents as specified.
Online
Step 5: Upload all required documents as specified.
Step 6: Step 6: Submit the application online within the prescribed timeline.
Online
Step 6: Submit the application online within the prescribed timeline.
Step 7: Step 7: The application will be evaluated by the Project Management Agency (PMA).
Online
Step 7: The application will be evaluated by the Project Management Agency (PMA).
Step 8: Step 8: Provide clarifications or additional documents, if requested during evaluation.
Online
Step 8: Provide clarifications or additional documents, if requested during evaluation.
Step 9: Step 9: Upon approval, receive the approval letter from the concerned authority.
Online
Step 9: Upon approval, receive the approval letter from the concerned authority.
Step 10: Step 10: Commence production and submit claims for incentives on an annual basis.
Online
Step 10: Commence production and submit claims for incentives on an annual basis.
Step 11: Step 11: Claims will be verified by the Project Management Agency (PMA) and approved for disbursement.
Online
Step 11: Claims will be verified by the Project Management Agency (PMA) and approved for disbursement.
Required Documents
• Application Form (as prescribed in Annexure 3)
• Proof of Payment of Application Fee (₹1,00,000/- paid electronically)
• Self-certified Statement of Consolidated Global Revenue for Financial Year (as per Annexure 4)
• Localisation Plan and Annual Incentive Projection
• Integrity Compliance Certificate (as per Annexure 10)
• Independent Auditor’s Certificate (confirming investment and sales details)
• Chartered Engineer Certificate (for physical verification of plant and machinery)
• Managing Director/CEO Certificate Regarding Regulatory Clearances
• Board Resolution (accepting terms and conditions)
• Declaration from Component Supplier (if localisation is done through a supply chain partner)
• Undertaking from the Contract Manufacturer (confirming they have not claimed double incentives).
Frequently Asked Questions
Q: What products are covered under the "Target Segment" of this scheme?
A: The target segment includes Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USSF) devices. To be eligible, these must be manufactured in India and be complete in all respects for sale to consumers.
<br>
Q: Who is considered an "Applicant" under the scheme?
A: An applicant is a company registered in India that proposes to manufacture goods covered under the target segment and submits an application for approval. Manufacturing can occur at new or existing facilities across one or more locations in India.
<br>
Q: What are the different categories of companies that can apply?
A: There are three categories:
- **Global Company:** Non-domestic companies with high global manufacturing revenue.- **Domestic Company:** Companies owned by resident Indian citizens (more than 50% capital).- **Hybrid (Global/Domestic) Company:** A category where both global and domestic companies can apply based on specific revenue thresholds
<br>
Q: What types of investments are eligible for determining threshold criteria?
A: Eligible investments include expenditure on Plant, Machinery, Equipment, and Associated Utilities (including tools, dies, moulds, etc.), Research and Development (R&D), and Transfer of Technology (ToT) agreements. Expenditure on land and buildings is explicitly excluded.
<br>
Q: Are there mandatory localization requirements?
A: Yes. Applicants are required to localise at least Printed Circuit Board Assembly (PCBA) and the assembly of the finished goods starting from the first year. In each subsequent year, at least one additional component or sub-assembly must be localised.
<br>
Q: How is the incentive calculated if there is an investment shortfall?
A: If the cumulative investment shortfall is 40% or less of the required threshold, the applicant remains eligible. However, the incentive for that year will be reduced by half of the percentage of the shortfall (e.g., a 30% shortfall results in a 15% incentive deduction).
<br>
Q: Can an applicant claim incentives for products manufactured through a contract manufacturer?
A: Yes, incentives can be claimed on sales of goods manufactured through a contract manufacturer, provided the arrangement is exclusive for the PLI applicant and the contract manufacturer has not claimed incentives for the same goods under any other PLI scheme.
<br>
Q: What happens if an applicant’s actual incentive claim is much lower than their projection?
A: To ensure realistic targets, penalties apply: a 5% deduction if the shortfall is between 25% and 50% of the projection, and a 10% deduction if the shortfall exceeds 50% of the projection. No penalty applies if no incentive is payable for that year.
<br>
Q: Is there a limit on the total incentive an applicant can receive?
A: Yes, there is an overall ceiling on the total incentive payable to any applicant during the scheme's tenure. This ceiling includes incentives gained from over-performance and any incentives received under the previous PLI Scheme 1.0 for IT Hardware.
<br>
The scheme "Production Linked Incentive PLI Scheme 2.0 for IT Hardware" has been launched by the Ministry of Electronics and Information Technology MeitY , Government of India. The aim is to promote domestic manufacturing of IT hardware products by providing production-linked incentives to eligible companies manufacturing target segment goods in India. Through this scheme, financial incentives on incremental sales of manufactured target segment goods — covering Laptops, Tablets, All-in-One Personal Computers PCs , Servers, and Ultra Small Form Factor USFF devices — are provided to Indian-registered companies across three categories: Global Companies, Hybrid Global/Domestic Companies, and Domestic Companies, that manufacture qualifying products in India. The scheme is implemented by a Project Management Agency PMA . Objectives: - To boost domestic manufacturing of IT hardware products under the Target Segment Laptops, Tablets, All-in-One PCs, Servers, and Ultra Small Form Factor devices in India. - To incentivise incremental investment in plant, machinery, equipment, Research and Development R&D , and Transfer of Technology ToT related to the Target Segment. - To promote localisation of components and sub-assemblies in the IT hardware value chain. - To encourage employment generation directly related to the manufacturing process. - To improve domestic value addition in the manufacturing of IT hardware.
Exclusions
• <br>
Benefits
• Target Segment Products: The tangible benefits apply to the manufacturing of Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USSF) devices.
• Incentive Rates (Year 1 → Year 6):
• Investment Shortfall Relief
• If investment shortfall is ≤40% of the threshold, incentive is still payable (with partial deduction of X/2%)
• Withheld incentive is refunded without interest once the investment threshold is met in a later year.
Eligibility Criteria
1. The applicant must be a company registered in India.
2. The applicant should propose to manufacture goods covered under the Target Segment.
3. The applicant must meet the threshold criteria of Incremental Investment.
4. The applicant must meet the threshold criteria of Net Incremental Sales of manufactured target segment goods over the base year.
5. The applicant should meet the qualification criteria based on Consolidated Global Manufacturing Revenue for Financial Year 2021-22.
6. The applicant under the Global Company category must have a Consolidated Global Manufacturing Revenue greater than ₹50,00,00,00,000/- (5,000 crore) for the target segment or greater than ₹100,00,00,00,000/- (10,000 crore) for electronics hardware.
7. The applicant under the Domestic Company category must have a Consolidated Global Manufacturing Revenue greater than ₹1,00,00,000/- (10 crore) for the target segment or greater than ₹2,00,00,000/- (20 crore) for electronics hardware.
8. The applicant must localise at least Printed Circuit Board Assembly (PCBA) and assembly of finished goods from the first year.
9. <br>
Application Process
Step 1: Step 1: Visit the official portal of the Production Linked Incentive (PLI) Scheme - 2.0 for IT Hardware.
Online
Step 1: Visit the official portal of the Production Linked Incentive (PLI) Scheme - 2.0 for IT Hardware.
Step 2: Step 2: Register on the portal using the company details.
Online
Step 2: Register on the portal using the company details.
Step 3: Step 3: Access the application form available on the portal.
Online
Step 3: Access the application form available on the portal.
Step 4: Step 4: Fill in all required details, including investment, production plans, and financial information.
Online
Step 4: Fill in all required details, including investment, production plans, and financial information.
Step 5: Step 5: Upload all required documents as specified.
Online
Step 5: Upload all required documents as specified.
Step 6: Step 6: Submit the application online within the prescribed timeline.
Online
Step 6: Submit the application online within the prescribed timeline.
Step 7: Step 7: The application will be evaluated by the Project Management Agency (PMA).
Online
Step 7: The application will be evaluated by the Project Management Agency (PMA).
Step 8: Step 8: Provide clarifications or additional documents, if requested during evaluation.
Online
Step 8: Provide clarifications or additional documents, if requested during evaluation.
Step 9: Step 9: Upon approval, receive the approval letter from the concerned authority.
Online
Step 9: Upon approval, receive the approval letter from the concerned authority.
Step 10: Step 10: Commence production and submit claims for incentives on an annual basis.
Online
Step 10: Commence production and submit claims for incentives on an annual basis.
Step 11: Step 11: Claims will be verified by the Project Management Agency (PMA) and approved for disbursement.
Online
Step 11: Claims will be verified by the Project Management Agency (PMA) and approved for disbursement.
Required Documents
• Application Form (as prescribed in Annexure 3)
• Proof of Payment of Application Fee (₹1,00,000/- paid electronically)
• Self-certified Statement of Consolidated Global Revenue for Financial Year (as per Annexure 4)
• Localisation Plan and Annual Incentive Projection
• Integrity Compliance Certificate (as per Annexure 10)
• Independent Auditor’s Certificate (confirming investment and sales details)
• Chartered Engineer Certificate (for physical verification of plant and machinery)
• Managing Director/CEO Certificate Regarding Regulatory Clearances
• Board Resolution (accepting terms and conditions)
• Declaration from Component Supplier (if localisation is done through a supply chain partner)
• Undertaking from the Contract Manufacturer (confirming they have not claimed double incentives).
Frequently Asked Questions
Q: What products are covered under the "Target Segment" of this scheme?
A: The target segment includes Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USSF) devices. To be eligible, these must be manufactured in India and be complete in all respects for sale to consumers.
<br>
Q: Who is considered an "Applicant" under the scheme?
A: An applicant is a company registered in India that proposes to manufacture goods covered under the target segment and submits an application for approval. Manufacturing can occur at new or existing facilities across one or more locations in India.
<br>
Q: What are the different categories of companies that can apply?
A: There are three categories:
- **Global Company:** Non-domestic companies with high global manufacturing revenue.- **Domestic Company:** Companies owned by resident Indian citizens (more than 50% capital).- **Hybrid (Global/Domestic) Company:** A category where both global and domestic companies can apply based on specific revenue thresholds
<br>
Q: What types of investments are eligible for determining threshold criteria?
A: Eligible investments include expenditure on Plant, Machinery, Equipment, and Associated Utilities (including tools, dies, moulds, etc.), Research and Development (R&D), and Transfer of Technology (ToT) agreements. Expenditure on land and buildings is explicitly excluded.
<br>
Q: Are there mandatory localization requirements?
A: Yes. Applicants are required to localise at least Printed Circuit Board Assembly (PCBA) and the assembly of the finished goods starting from the first year. In each subsequent year, at least one additional component or sub-assembly must be localised.
<br>
Q: How is the incentive calculated if there is an investment shortfall?
A: If the cumulative investment shortfall is 40% or less of the required threshold, the applicant remains eligible. However, the incentive for that year will be reduced by half of the percentage of the shortfall (e.g., a 30% shortfall results in a 15% incentive deduction).
<br>
Q: Can an applicant claim incentives for products manufactured through a contract manufacturer?
A: Yes, incentives can be claimed on sales of goods manufactured through a contract manufacturer, provided the arrangement is exclusive for the PLI applicant and the contract manufacturer has not claimed incentives for the same goods under any other PLI scheme.
<br>
Q: What happens if an applicant’s actual incentive claim is much lower than their projection?
A: To ensure realistic targets, penalties apply: a 5% deduction if the shortfall is between 25% and 50% of the projection, and a 10% deduction if the shortfall exceeds 50% of the projection. No penalty applies if no incentive is payable for that year.
<br>
Q: Is there a limit on the total incentive an applicant can receive?
A: Yes, there is an overall ceiling on the total incentive payable to any applicant during the scheme's tenure. This ceiling includes incentives gained from over-performance and any incentives received under the previous PLI Scheme 1.0 for IT Hardware.
<br>
Eligibility Criteria
1
The applicant must be a company registered in India.
2
The applicant should propose to manufacture goods covered under the Target Segment.
3
The applicant must meet the threshold criteria of Incremental Investment.
4
The applicant must meet the threshold criteria of Net Incremental Sales of manufactured target segment goods over the base year.
5
The applicant should meet the qualification criteria based on Consolidated Global Manufacturing Revenue for Financial Year 2021-22.
6
The applicant under the Global Company category must have a Consolidated Global Manufacturing Revenue greater than ₹50,00,00,00,000/- (5,000 crore) for the target segment or greater than ₹100,00,00,00,000/- (10,000 crore) for electronics hardware.
7
The applicant under the Domestic Company category must have a Consolidated Global Manufacturing Revenue greater than ₹1,00,00,000/- (10 crore) for the target segment or greater than ₹2,00,00,000/- (20 crore) for electronics hardware.
8
The applicant must localise at least Printed Circuit Board Assembly (PCBA) and assembly of finished goods from the first year.
9
<br>
Benefits
Target Segment Products: The tangible benefits apply to the manufacturing of Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USSF) devices.
Incentive Rates (Year 1 → Year 6):
Investment Shortfall Relief
If investment shortfall is ≤40% of the threshold, incentive is still payable (with partial deduction of X/2%)
Withheld incentive is refunded without interest once the investment threshold is met in a later year.
Required Documents
| # | Document |
|---|---|
| 1 | Application Form (as prescribed in Annexure 3) |
| 2 | Proof of Payment of Application Fee (₹1,00,000/- paid electronically) |
| 3 | Self-certified Statement of Consolidated Global Revenue for Financial Year (as per Annexure 4) |
| 4 | Localisation Plan and Annual Incentive Projection |
| 5 | Integrity Compliance Certificate (as per Annexure 10) |
| 6 | Independent Auditor’s Certificate (confirming investment and sales details) |
| 7 | Chartered Engineer Certificate (for physical verification of plant and machinery) |
| 8 | Managing Director/CEO Certificate Regarding Regulatory Clearances |
| 9 | Board Resolution (accepting terms and conditions) |
| 10 | Declaration from Component Supplier (if localisation is done through a supply chain partner) |
| 11 | Undertaking from the Contract Manufacturer (confirming they have not claimed double incentives). |
How to Apply
1
Step 1: Visit the official portal of the Production Linked Incentive (PLI) Scheme - 2.0 for IT Hardware.
Online Step 1: Visit the official portal of the Production Linked Incentive (PLI) Scheme - 2.0 for IT Hardware.
2
Step 2: Register on the portal using the company details.
Online Step 2: Register on the portal using the company details.
3
Step 3: Access the application form available on the portal.
Online Step 3: Access the application form available on the portal.
4
Step 4: Fill in all required details, including investment, production plans, and financial information.
Online Step 4: Fill in all required details, including investment, production plans, and financial information.
5
Step 5: Upload all required documents as specified.
Online Step 5: Upload all required documents as specified.
6
Step 6: Submit the application online within the prescribed timeline.
Online Step 6: Submit the application online within the prescribed timeline.
7
Step 7: The application will be evaluated by the Project Management Agency (PMA).
Online Step 7: The application will be evaluated by the Project Management Agency (PMA).
8
Step 8: Provide clarifications or additional documents, if requested during evaluation.
Online Step 8: Provide clarifications or additional documents, if requested during evaluation.
9
Step 9: Upon approval, receive the approval letter from the concerned authority.
Online Step 9: Upon approval, receive the approval letter from the concerned authority.
10
Step 10: Commence production and submit claims for incentives on an annual basis.
Online Step 10: Commence production and submit claims for incentives on an annual basis.
11
Step 11: Claims will be verified by the Project Management Agency (PMA) and approved for disbursement.
Online Step 11: Claims will be verified by the Project Management Agency (PMA) and approved for disbursement.
Frequently Asked Questions
The target segment includes Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USSF) devices. To be eligible, these must be manufactured in India and be complete in all respects for sale to consumers. <br>
Sources and references
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