A number of international producers of hardware and electronics have petitioned the Government of India (GoI) to make the payments owing to them, under the aspiring Production Linked Incentive (PLI) programme of the nation, as swift as possible.
The Production Linked Incentive Scheme, or PLI Scheme, is a programme launched by the Indian Government to promote production and manufacturing activities to take place domestically and locally in addition to encouraging firms from overseas to locate their employees within the borders of the nation (India), by which new employment opportunities will be created.
According to certain sources, postponed payouts are causing prominent businesses, like Dell which is the computer manufacturing giant, Wistron Corporation which manufactures the iPhone, Dixon Technologies which is an electronics manufacturer MNC, and many more other companies, to be unsure about the investment ideas they make in the time to come.
Previously, reports had come out saying that the apex body of the electronics and mobile sector, India Cellular and Electronics Association (ICEA), wrote a letter to the Prime Minister’s Office (PMO) in June, requesting the payment of incentives to be made at a swift as well as the debts owed to the sector under several schemes.
The Indian Government agency, the Ministry of Electronics and Information Technology (MeitY) has received many petitions calling for fast-tracking the incentive payments. According to reports that have come out, officials of these enterprises were also set to hold a meeting on Wednesday with the Secretary of the Ministry to make their case.
According to sources, the leading entity responsible for reviewing and releasing the incentives, the Industrial Finance Corporation of India (NSE: IFCI), has been unable to finish the necessary audit of the filed petitions. About 3 different audit teams have been appointed at the IFCI in the past 6 months, which necessitates a fresh start at each point in time. The recipients must describe incremental sales, validate the data as well as other investments, and later provide a justification for the reason to be granted the incentive.