Grants Provisioned under Uttarakhand Tourism Policy, 2023 2026

This scheme offers financial rewards to companies manufacturing Laptops, Tablets, All-in-One PCs, Servers, and Ultra Small Form Read More... Factor (USFF) devices in India, aiming to boost local production. Read less

Details

The Indian government, through the Ministry of Electronics and Information Technology (MeitY), has launched the Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware. This initiative is designed to give a major push to domestic manufacturing of essential IT hardware products.

What Is This Scheme?

The PLI Scheme 2.0 for IT Hardware provides financial incentives based on the increase in sales of eligible products manufactured in India. It covers Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USFF) devices. The goal is to encourage companies to invest in manufacturing these items locally and become globally competitive.

Who Can Benefit From This Scheme?

Companies registered in India, including global players and domestic firms, that plan to manufacture designated IT hardware products are eligible. This includes those looking to set up new manufacturing units or expand existing ones within India.

Why This Scheme Is Important

The scheme is crucial for strengthening India's manufacturing capabilities in the IT hardware sector. It aims to reduce import dependence, create jobs, promote research and development, and enhance the overall value addition within the country's electronics manufacturing ecosystem. By incentivizing incremental production, it encourages sustained growth and technological advancement.

Objective

This scheme offers financial rewards to companies manufacturing Laptops, Tablets, All-in-One PCs, Servers, and Ultra Small Form Factor (USFF) devices in India, aiming to boost local production.

Benefits

Under Uttarakhand Tourism Policy, 2023, the following grants are allowed to investors:-The following capital subsidy is provided for tourism projects to be set up by making capital investment in the tourism sector in the state. Grants are admissible:Maximum capital grant for housing projects:

Category A – up to 25%
Category B – up to 35%
Category C – up to 50%

The grant will be given as per the following details:

a) The maximum admissible capital subsidy shall be disbursed in 10 equal annual installments from the date of commencement of commercial operations, i.e., 10% of the total capital subsidy per annum;

b) The subsidy amount shall be equivalent to 75% of the net State Goods and Services Tax (SGST) paid by the unit during the preceding 12 months, + applicable additional incentives, whichever is lower.

Additional Annual Incentives for Residential Projects:

i. Incentive for Marketing and Publicity – Up to a maximum of 1% of the capital grant.

ii. Incentive for Training and Skilling – Up to a maximum of 0.5% of the capital grant.

iii. Interest Subsidy – Up to a maximum of 1% of the capital subsidy.

iv. Incentive for Waste Treatment – Up to a maximum of 0.25% of the capital subsidy.

v. Incentive for Bookings through Online Travel Agencies/Platforms Developed by the State – Up to a maximum of 0.25% of the capital grant.

Capital Grant for Development of Tourism Products and Services – Grant of up to 100% of the capital asset

Grant will be provided as per the following details:

a) Capital subsidy shall be disbursed in 5 equal annual installments from the date of commercial operation, i.e., 20% of the capital subsidy per annum, or

b) The subsidy shall be 75% of the net State Goods and Services Tax (SGST) paid by the unit for the last 12 months, + additional incentive, whichever is lower.

Additional Annual Incentives for Development of Tourism Products and Servicesi. Incentive for Marketing and Publicity – Up to a maximum of 2% of the capital grant.ii. Incentive for Training and Skilling – Up to a maximum of 2% of the capital grant.iii. Interest Subsidy – Up to a maximum of 2% of the capital subsidy.iv. Booking through Online Travel Agency/Platform Developed by the State – Up to a maximum of 1% of the capital grant.

Turnover Linked Incentive– A provision of turnover-based grants is available for tourism projects that are already operational and not receiving a capital grant. The following incentives are permissible:

a) Premium Residential Units – Up to a maximum of 1% of the eligible turnover.

b) Incentive on Foreign Tourist Stay – Up to a maximum of 1% of the eligible turnover.

c) MICE, Organization of Art, Social and Cultural Events, Fairs, and Festivals – Up to a maximum of 1% of the eligible turnover.

Incentive for Heli-Transport –From Sahastradhara, Jolly Grant, and Pantnagar helipads to the nearest residence or helipad, a subsidy of ₹500 per person per leg shall be provided to the unit for helicopter transport.

Reimbursement of Electricity Duty– 100% reimbursement of electricity duty shall be provided to new eligible tourism units for the duration of the policy period.

Reimbursement of Stamp Duty –New eligible tourism units shall receive reimbursement of the applicable stamp duty in five equal installments.

To qualify for grants under the Tourism Policy 2023, the minimum investment requirement for new or expansion projects ranges from ₹1 crore to ₹5 crore, depending on the category and location of the project. Investors must also ensure the provision of minimum required infrastructure, compliance with prescribed conditions, and adherence to other regulations specified in the guidelines. Detailed information is available in the Operational Guidelines.

Sources and references

Guidelines (Page No. 169)

Eligibility Criteria

Applicants must be companies incorporated and registered in India.
The company must intend to manufacture products that fall under the scheme's 'Target Segment' (Laptops, Tablets, All-in-One PCs, Servers, USFF devices).
Applicants must meet specific thresholds for Incremental Investment in manufacturing.
Applicants must also meet the threshold for Net Incremental Sales of manufactured target segment goods over a defined base year.
Eligibility is also dependent on meeting qualification criteria based on Consolidated Global Manufacturing Revenue for the Financial Year 2021-22.
For Global Companies, the Consolidated Global Manufacturing Revenue for the target segment should be over ₹5,000 crore (₹50,00,00,000) or over ₹10,000 crore (₹100,00,00,000) for electronics hardware.
For Domestic Companies, the Consolidated Global Manufacturing Revenue should be over ₹10 crore (₹1,00,00,000) for the target segment or over ₹20 crore (₹2,00,00,000) for electronics hardware.
Mandatory localization of at least Printed Circuit Board Assembly (PCBA) and the final assembly of finished goods is required from Year 1.

How To Apply

Companies interested in the PLI Scheme 2.0 for IT Hardware must submit an application through the prescribed process. The scheme is implemented by a Project Management Agency (PMA).

Applications need to be submitted in the format provided in Annexure 3 of the official guidelines.
A proof of payment for the Application Fee of ₹1,00,000/- must be submitted, paid electronically.
Further details on the application process, including specific deadlines and requirements, can be found in the official scheme documents. The official link for guidelines is: PLI Scheme IT Hardware Guidelines.

Documents Required

Completed Application Form (as per Annexure 3).
Proof of payment for the application fee of ₹1,00,000/-.
A self-certified statement of Consolidated Global Revenue for the Financial Year (as per Annexure 4).
Detailed Localisation Plan and Annual Incentive Projection.
Integrity Compliance Certificate (as per Annexure 10).
Certificate from an Independent Auditor confirming investment and sales details.
Chartered Engineer Certificate for physical verification of plant and machinery.
A certificate from the Managing Director/CEO regarding necessary regulatory clearances.
Board Resolution indicating acceptance of the scheme's terms and conditions.
Declaration from any Component Supplier if localization is being done via a supply chain partner.
An undertaking from the Contract Manufacturer confirming they are not claiming double incentives for the same goods.

FAQ’s

What exactly are the products covered under this scheme's 'Target Segment'?

The scheme specifically targets Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USSF) devices. These products must be manufactured in India and be ready for sale to end consumers to be eligible for incentives.

Can companies manufacturing goods through a contract manufacturer apply for incentives?

Yes, you can claim incentives on sales of goods manufactured by a contract manufacturer. However, the arrangement must be exclusive for the PLI applicant, and the contract manufacturer must not have claimed incentives for the same products under any other PLI scheme.

What are the different types of companies that can apply for this scheme?

There are three main categories of applicants: Global Companies (non-domestic companies with substantial global manufacturing revenue), Domestic Companies (companies owned by resident Indian citizens with over 50% capital), and Hybrid (Global/Domestic) Companies (a category catering to specific revenue thresholds for both global and domestic firms).

What happens if my actual incentive claim is significantly lower than what I projected?

To ensure realistic projections, penalties apply if your actual incentive claim falls short. A 5% deduction is made if the shortfall is between 25% and 50% of your projection. If the shortfall exceeds 50% of your projection, a 10% deduction will be applied. No penalty is charged if no incentive is payable for that particular year.

Who qualifies as an 'Applicant' for the PLI Scheme 2.0?

An 'Applicant' is defined as a company that is registered in India and intends to manufacture goods within the scheme's target segment. They must formally apply and get approved, and manufacturing can take place at any new or existing facility in India.

Are there any mandatory local production requirements?

Yes, there are. From the very first year of the scheme, applicants must ensure the localization of at least Printed Circuit Board Assembly (PCBA) and the assembly of the final product. Additionally, in each subsequent year, at least one more component or sub-assembly needs to be localized.

What is the process for claiming incentives if there's a shortfall in the expected investment?

If your cumulative investment falls short by 40% or less of the required threshold, you are still eligible to receive incentives. However, the incentive amount for that year will be reduced by half of the percentage of the shortfall. Any incentive withheld due to this shortfall can be refunded later without interest, once the investment threshold is met in a subsequent year.

What kind of investments count towards meeting the eligibility criteria?

Eligible investments include spending on Plant, Machinery, Equipment, and associated Utilities, which also covers tools, dies, and moulds. Expenses related to Research and Development (R&D) and Transfer of Technology (ToT) agreements are also counted. However, costs for land and buildings are not eligible.

Is there a limit to the total amount of incentive a company can receive?

Yes, there is an overall cap on the total incentive any single applicant can receive throughout the scheme's duration. This total includes any incentives earned from exceeding targets, as well as any amounts received under the previous PLI Scheme 1.0 for IT Hardware.