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States Need To Come On Board For Success Of PLIs: MAIT
The Centre has a PLI scheme but you need land, electricity and other infrastructure for manufacturing. In most of the states, a single-window investment system has become an additional system.
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Besides incentives, manufacturers also need infrastructure on ground for the successful implementation of the PLI scheme for which states need to come on board, a senior official of industry body MAIT said.
The Manufacturers' Association of Information Technology (MAIT), whose members include Apple, Dell, Lenovo, Cisco and HP, said single-window clearance system in several states has become an additional window, which makes investors to run after individual departments for clearances.
'Larger issue is that states have to come on board. Without (their) active participation, the scheme will not be successful.
'It will create massive tax and non-tax revenue for the states. The government needs to take calls and get states like Andhra Pradesh, Karnataka, Tamil Nadu, Telangana, Maharashtra, Uttar Pradesh, Gujarat, Punjab and Haryana on board,' MAIT President Nitin Kunkolienker told PTI.
He said these states account for 70-80 per cent of electronic hardware manufacturing and they have to come up with a proactive policy.
'The Centre has a PLI scheme but you need land, electricity and other infrastructure for manufacturing. In most of the states, a single-window investment system has become an additional system.
'Even ease of doing business rating is more investment centric. What are the responsibilities? No one is talking about running and earning of the operations and issues that come up,' Kunkolienker said.
The electronics and IT ministry is inviting applications for the IT hardware production-linked incentive (PLI) scheme till April 30.
The scheme, with an outlay of Rs 7,350 crore, will provide an incentive for manufacturers of laptops, tablets, all-in-one PCs and servers.
Kunkolienker said incentives provided by the government are not enough, and factors that can lead to demand aggregation are missing in the policy.
'The government has to play an enabler role for both demand creation as well as giving a little more incentive to shift the existing supply chain from other parts of the world to India.
'The DoT scheme is exciting. Somewhere on those lines, IT hardware PLI should have come,' he said.
The government will consider up to 20 times the value of incremental sales of telecom gear makers for doling out PLI. And, the incentive will be given in the range of 4-7 per cent of the incremental sales value to MSMEs and 4-6 per cent to the rest of the companies for manufacturing telecom equipment under the telecom PLI scheme.
Kunkolienker, however, said job creation and investment are expected to be in line with government announcement as it has discussed the policy directly with brands who have made commitments for PLI schemes.