Samsung to get Rs 600 crore under PLI scheme for smartphones: Report

Samsung to get Rs 600 crore under PLI scheme for smartphones: Report

Centre is likely to disburse Rs 600 crore to Samsung under the Production-linked Incentive (PLI) scheme for mobile phone manufacturing, Mint reported on Monday. This would be the largest payout ever under the scheme.

Samsung had claimed incentives of about Rs 900 crore for generating revenues of about Rs 15,000 crore from smartphone sales in 2020-21, the first year of the PLI scheme. It was the only company to meet the threshold of minimum investment of Rs 250 crore in India.

Centre had stopped the incentives for Samsung, claiming there were discrepancies in the invoicing, where phones that were priced below the threshold of Rs 15,000 were also included in the revenue on which the total incentives are calculated. However, the Mint reported on Monday cited an official as saying that the discrepancies have been sorted out.

Under the PLI scheme for large-scale electronics manufacturing, which includes mobile phone and component manufacturing, the Centre had agreed to give incentives to 32 firms in the first two rounds as of September 2021.

Samsung was one of the 10 firms selected for the scheme in the first round. The PLI saw interest from leading global firms including Foxconn, Pegatron, Rising Star and Wistron. Several local players such as Lava, Micromax, Optiemus, United Telelinks Neolyncs and Padget Electronics also participated in this scheme.

This scheme attracted over Rs 6,600 crore worth of investments as of March 2023, generating the production of Rs 3 trillion and exports of Rs 1.3 trillion while employing over 60,000 people, Mint added.

The total istanbul escort incentive outlay for the scheme will FY27 has been kept at Rs 38,645 crore.