MeitY Likely to Assess IT Hardware PLI Scheme After Rise in Payouts

The Ministry of Electronics and Information Technology (MeitY) is to review the IT hardware Production Linked Incentive (PLI) scheme later in FY27, news reports citing officials said.  

The review is likely after incentive claims under the programme begin increasing during the year. 

Higher Claim Payouts Expected in FY27 

The ₹17,000 crore IT Hardware PLI 2.0 scheme has so far seen limited disbursement activity. Around ₹82 crore has been released under the scheme till now, according to the reports 

Most participating companies had selected FY25 as their first year of production under the programme.  

As a result, a larger number of claims is to be processed during FY27 after companies report incremental sales linked to manufacturing targets. 

AI Hardware Under Consideration 

The government may also consider adding artificial intelligence (AI) servers and related hardware products under the scheme at a later stage.  

The decision is to depend on the progress of domestic component manufacturing and the overall performance of the current scheme. 

The first PLI scheme for IT hardware was notified in 2021. The second version of the programme was introduced in 2023 to increase local manufacturing of laptops, tablets, personal computers and servers. 

Companies participating in the scheme are eligible for incentives based on additional sales generated over a selected base year.  

Firms Shifted Supply Chains 

Officials said several multinational companies had sought additional time before starting production under the scheme. Many firms were in the process of shifting supply chains from China and other South East Asian countries to India. 

The scheme currently has 27 approved applicants. Global technology companies including Dell Technologies, HP, Lenovo, Asus and Foxconn are part of the programme. 

Domestic manufacturers such as Dixon Technologies, Kaynes Electronics, Syrma SGS Technology, and Sahasra Electronic Solutions have also been approved under the scheme. 

Read More: Tamil Nadu Govt Assures Early Release of ₹1,000 Women Assistance Scheme Payment! 

Conclusion 

Officials said any modification to the scheme would be considered after reviewing production levels, incentive payouts, and manufacturing activity during FY27. 

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