(THE GIST OF PIB) Production Linked Incentive Scheme 2.0

(THE GIST OF PIB) Production Linked Incentive Scheme 2.0


Production Linked Incentive Scheme 2.0

  • Recently, the Operational Guidelines of Production Linked Incentive Scheme 2.0 for IT Hardware has been finalized.

About Production Linked Incentive Scheme 2.0:


  • The scheme proposes a financial incentive to boost domestic manufacturing and attract large investments in the value chain.
  • The target segments under PLI 2.0 Scheme shall include Laptops, Tablets, All-in-One PCs and Servers and Ultra Small Form Factor.
  • Implementation: Companies, both global and domestic, that meet the eligibility criteria specified in the PLI 2.0 Scheme guidelines will receive support for manufacturing goods in India within the specified target segment.
  • The classification of applicants into the Hybrid (Global/Domestic) category will be determined by whether the company is domestic or global.
  • A comprehensive ranking of all applicants will be maintained based on the eligibility criteria outlined in the scheme guidelines.
  • Subsequently, the selection of applicants in each category—global, hybrid, and domestic—will be based on their ranking and overall PLI projection, subject to the availability of the budget.
  • Tenure: The incentives provided under the PLI 2.0 Scheme will be applicable for a period of 6 years
  • Base year: For the calculation of net incremental sales of manufactured goods, the base year will be the financial year 2022-23.

Incentives payout:

  • The incentive granted to each company will be based on the net incremental sales of manufactured goods in the target segment, compared to the base year.
  • The maximum incentive amounts will be capped at INR 45 billion for global companies, INR 22.50 billion for hybrid (global/domestic) companies, and INR 5 billion for domestic companies.



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Courtesy: PIB