Samsung To Receive Rs 500 Cr Under PLI Incentives

South Korean electronic manufacturer Samsung will receive Rs 500 crore under the production-linked incentive (PLI) scheme for extra production of mobile phones in 2020-21.

As per the media reports, "The company had claimed a PLI incentive of Rs 900 crore."

The Samsung electronics manufacturer filed a claim under the Production Linked Incentive scheme for large-scale electronics manufacturing announced in 2020 to promote electronic manufacturing in India.

"The matter has been settled. The company will get around Rs 500 crore," stated the government official, who did not wish to be named, as reported by the media.

Meanwhile, when the media contacted Samsung India's spokesperson, they said, "They are currently in an advanced stage of discussions with the Government of India on the incentive claim payout."

He further added, "Samsung is a committed partner of India for over 26 years. As the leading smartphone player, we have been working closely with various stakeholders to make the PLI scheme a success.”

To qualify for incentives under the PLI scheme, a foreign company has to manufacture phones of value above Rs 15,000 apiece and achieve incremental sales of Rs 4,000 crore in the first year.

The scheme was notified on April 1, 2020, under which there is an incentive of 4 to 6 per cent on incremental sales for a period of five years subsequent to the year.

The companies should also have to invest at least Rs 250 crore a year for four years.

Five global and five local companies were selected for the PLI scheme, which started in August 2020.

The scheme boosted domestic manufacturing, and exports of smartphones saw a spike to USD 7.5 billion during January-June this year from USD 2.5 billion in January-June 2022.