Foxconn, Wistron, Pegatron, Samsung to get more than Rs 4,400 cr under PLI

Three of Apple Inc’s contract manufacturers in India, Foxconn, Tata-owned Wistron, and Pegatron are set to get more than Rs 4,400 crore in incentives for meeting the targets in FY23 under the government’s production-linked incentive (PLI) scheme for smartphones. Apart from these companies, South Korea’s Samsung and homegrown company, Dixon Technologies, are also to get part of the Rs 4,400 crore incentives.

According to a report in The Economic Times, some of the 10 companies selected have not met the targets, and hence the original planned outlay of Rs 6,504 crore for FY24 will not be fully utilised. Companies get the incentives a year after they achieve the targets. Companies that exceed the targets can claim additional sops too.

Rising Star (Bharat FIH), smartphone contract manufacturer for Xiaomi has failed to meet the targets since FY21 when the PLI was first rolled out. Indian companies Lava and Optiemus Electronics have not met the targets even once.

So far, the government has released around Rs 2,500 crore under the PLI scheme, the report stated, adding that Samsung received Rs 500 crore, while Foxconn, Wistron, Pegatron and Dixon received around Rs 1,700-2,000 crore. Samsung had failed to meet the targets for the second year but has now claimed to meet the targets for the third year.

Mobile phone exports, buoyed by the PLI scheme, reached $10.5 billion in the April-December 2023 period.