Grants Provisioned under Uttarakhand Tourism Policy, 2023 2026
This scheme aims to boost the domestic manufacturing of Laptops, Tablets, All-in-One PCs, Servers, and Ultra Small Read More... Form Factor (USFF) devices in India by offering production-linked financial incentives. 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 significantly enhance domestic manufacturing of key IT hardware products. By providing financial incentives based on incremental sales, the scheme encourages eligible companies to set up and expand their manufacturing operations in India.
What is the PLI Scheme 2.0 for IT Hardware?
This scheme offers financial rewards to companies that manufacture specific IT hardware products in India. These incentives are directly linked to the increase in sales of these manufactured goods over a base period. The primary goal is to make India a hub for IT hardware production, covering items like Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USFF) devices.
Who Can Benefit?
The scheme is designed for companies that are registered in India and are looking to manufacture IT hardware products. It caters to various types of businesses, including large global corporations, hybrid entities, and purely domestic companies, provided they meet specific investment and sales criteria.
Why is This Scheme Important?
The PLI Scheme 2.0 for IT Hardware is crucial for several reasons. It aims to develop India's manufacturing capabilities in the IT sector, encourage investment in machinery and R&D, and boost local component production. This will not only create more jobs but also improve the overall value addition within the country's electronics manufacturing ecosystem.
Objective
Benefits
- Category A – up to 25%
- Category B – up to 35%
- Category C – up to 50%
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;
OR
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.
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
Eligibility Criteria
- The applicant must be a company officially registered in India.
- The company should plan to manufacture products that fall under the scheme's target segment.
- Applicants must meet specific requirements for Incremental Investment in manufacturing.
- There's a need to meet threshold criteria for Net Incremental Sales of manufactured target segment goods compared to a base year.
- Applicants must meet qualification criteria based on their Consolidated Global Manufacturing Revenue for the Financial Year 2021-22.
- Global Companies need a Consolidated Global Manufacturing Revenue of over ₹5,000 crore for the target segment, or over ₹10,000 crore for electronics hardware.
- Domestic Companies require a Consolidated Global Manufacturing Revenue of over ₹10 crore for the target segment, or over ₹20 crore for electronics hardware.
- Localization is mandatory: Printed Circuit Board Assembly (PCBA) and the assembly of finished goods must be done in India from the first year onwards.
How To Apply
- Companies need to submit a detailed Application Form as specified in Annexure 3 of the scheme guidelines.
- Proof of payment for the Application Fee of ₹1,00,000/- must be submitted, paid electronically.
- A self-certified statement of Consolidated Global Revenue for the Financial Year, as per Annexure 4, is required.
- A Localisation Plan and an Annual Incentive Projection must be provided.
- An Integrity Compliance Certificate (Annexure 10) is necessary.
- An Independent Auditor’s Certificate is needed to confirm investment and sales details.
- A Chartered Engineer Certificate is required for the physical verification of plant and machinery.
- A certificate from the Managing Director/CEO regarding Regulatory Clearances is also a must.
- A Board Resolution accepting the scheme's terms and conditions needs to be submitted.
- If localization is done through a supply chain partner, a Declaration from the Component Supplier is required.
- An Undertaking from the Contract Manufacturer is needed to confirm they are not claiming double incentives for the same goods.
- The application and related documents should be submitted as per the guidelines provided on the official MeitY portal. For detailed information and submission links, refer to the official scheme documents.
Documents Required
- Completed Application Form (as per Annexure 3).
- Receipt for the ₹1,00,000/- Application Fee paid electronically.
- Self-certified statement of Consolidated Global Revenue for FY 2021-22 (as per Annexure 4).
- A detailed Localisation Plan and projected Annual Incentives.
- Integrity Compliance Certificate (as per Annexure 10).
- Certificate from an Independent Auditor confirming investment and sales figures.
- Certificate from a Chartered Engineer verifying the plant and machinery.
- Certificate from the Managing Director/CEO confirming all necessary regulatory clearances are in place.
- A Board Resolution endorsing acceptance of the scheme's terms and conditions.
- Declaration from any Component Supplier involved in the localization process.
- An Undertaking from a Contract Manufacturer confirming no double incentive claims.
Official Sources
- Guidelines for the PLI Scheme for IT Hardware: Link to Guidelines
FAQ’s
What types of IT hardware are included in this scheme's target segment?
The scheme specifically covers Laptops, Tablets, All-in-One Personal Computers (PCs), Servers, and Ultra Small Form Factor (USSF) devices. For a product to qualify, it must be manufactured in India and be fully ready for sale to end-users.
Can I get incentives if I manufacture through a third-party manufacturer?
Yes, you can claim incentives for goods manufactured by a contract manufacturer. However, this arrangement must be exclusive to you as the PLI applicant, and the contract manufacturer should not be receiving incentives for the same items under any other PLI scheme.
What happens to my incentive if my actual claim is much lower than I projected?
To ensure realistic projections, penalties are in place. If your actual claim is 25% to 50% lower than projected, a 5% deduction will apply to your incentive. If the shortfall exceeds 50%, the deduction increases to 10%. No penalty is applied if no incentive is payable for that year.
Are there any special incentives for manufacturing certain components in India?
Absolutely. The scheme offers enhanced incentives for SoC Processors designed in India, at rates of 3.24% to 2.43% (and up to 3.78% to 2.84% for Servers). Additionally, there are further incentives for companies involved in ATMP and IC manufacturing within India.
What are the different categories of companies that can apply for this scheme?
There are three main categories: Global Company (for large international firms with significant global manufacturing revenue), Domestic Company (for Indian-owned businesses with over 50% stake held by resident Indians), and Hybrid (Global/Domestic) Company (a flexible category for both types that meet specific revenue thresholds).
Is it mandatory to localize production under this scheme?
Yes, localization is a key requirement. You must begin by localizing at least the Printed Circuit Board Assembly (PCBA) and the final assembly of finished goods from the very first year. In each following year, you must localize at least one more component or sub-assembly.
What if my company's investment falls short of the required threshold?
If your cumulative investment falls short by 40% or less of the required threshold, you are still eligible for incentives. However, the incentive for that year will be reduced by half the percentage of the shortfall. Any withheld incentive can be refunded later if the full investment threshold is met in a subsequent year.
Who qualifies as an 'Applicant' for this scheme?
An applicant is defined as a company that is registered in India and intends to manufacture products listed under the target segment. The company must submit an application to be considered for approval. Manufacturing activities can take place at either new or existing facilities across various locations within India.
What kind of investments are considered for meeting the scheme's threshold criteria?
Eligible investments include spending on Plant, Machinery, Equipment, and associated Utilities like tools, dies, and moulds. Expenses related to Research and Development (R&D) and Transfer of Technology (ToT) agreements also count. Importantly, expenditure on land and buildings is 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 cap includes any incentives earned from exceeding performance targets and any amounts received under the previous PLI Scheme 1.0 for IT Hardware.
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