Under the handset production-related incentive scheme, the government has approved Rs 357.17 crore for Apple supplier Foxconn India and Rs 58.29 crore for Dixon Technologies subsidiary Padget Electronics.

It is the first time the government has approved an incentive for a multinational company engaged in electronics manufacturing in India.

“Foxconn Hon Hai Technology India Mega Development Pvt Ltd is the first global company to receive Mobile Manufacturing Incentive Approval in Phase 1 under the target segment ‘Mobile Phone’ (category with an invoice value of Rs 15,000 and above) August 2021 Based on incremental investment and sales data as of March 31, 2022.

On Tuesday, Niti Ayog said: “The approved incentive amount is Rs 357.17 crore,”. Foxconn India is a Taiwanese multinational electronics contract manufacturer headquartered in Tucheng, New Taipei City.

The PLI scheme for Large-Scale Electronics Manufacturing (LSEM) has attracted investments of Rs 4,784 crore for a total production of Rs 2,03,952 crore as of September 2022, of which exports were worth Rs 80,769 crore.

Handset production will increase from about 6 crore units in 2014-15 to about 31 crore units in 2021-22. In 2021-22, India exported Rs 45,000 crore worth of mobile phones.

“Padget Electronics Pvt Ltd, a domestic company, has received approval from the Authorisation Board to acquire mobile manufacturing items for January-March 2022 based on its incremental investment and sales figures under the target segment ‘Mobile Phones’ under the incentive. The amount of the incentive approved is Rs 58.29 crore,” the statement said.

Based on its incremental investment and sales figures, the company has already secured Rs 53.28 crore under the PLI scheme for large-scale electronics manufacturing during August-December 2021.

The incentive disbursement proposal, put forward by the Ministry of Electronics and IT, was considered by an empowering committee comprising NITI Aayog CEO Param Iyer, MeitY Secretary Alkesh Kumar Sharma, DPIIT Secretary Anurag Jain and others.