Central GovernmentVerified

Production Linked Incentive Scheme (PLI) for IT Hardware Scheme 2.O

Ministry: Ministry of Electronics and Information Technology

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.

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About This Scheme

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.

Benefits

> The scheme provides a financial incentive for the net incremental sales of goods manufactured in India and covered under the target segment.

1. 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.

1. 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 available for ATMP and IC manufacturing in India

1. 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.

> Duration: Incentive given for 6 consecutive years within the scheme tenure

> Frequency: Claims can be filed quarterly, half-yearly, or annually

> Filing Deadline: Claims must be filed within 9 months from the end of the relevant financial year

Eligibility

Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.

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).

✦ Required ◦ Optional

How to Apply

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