The government's flagship program to stimulate mobile phone manufacturing - the Production Linked Incentive Scheme - seems to be off to a good start with Samsung and Pegatron also signing up under the scheme, say sources. Sources also confirmed that given the healthy response, the July 31 deadline for filing applications under the PLI scheme is unlikely to be extended.

Under the Rs 41000 crore PLI scheme, the govt hopes to provide an incentive of 4-6 percent on incremental sales over a base year, for a period of 5 years. This scheme, the govt hopes will stimulate investments in telecom manufacturing in India.

Taiwanese majors such as Foxconn and Wistron had already moved applications under the PLI scheme. Indian players such as Karbonn and Lava have also entered the fray.

While Samsung is looking to boost local manufacturing in India, Apple is not too far behind. Taiwan based Pegatron is Apple's 2nd largest contract manufacturer has already registered its subsidiary in Chennai, d will be joining the PLI bandwagon.

Not far behind is Singapore based Flexatronics. Flex is also expected to submit its application under the PLI scheme.

Also hoping to cash in on the anti-China sentiment in the country, even players such as LG are in talks, in advanced stages, with local players to increase output many times over. Speaking of M&A, sources tell us, that at least 5 global heavyweights are eyeing local contract manufacturers with an average ticket size of sub-USD 1 billion.

However, no clarity now emerged on if and how the Chinese phone makers will hope to participate under the PLI scheme.

First Published:Jul 28, 2020 7:48 PM IST