As per an earlier announcement, the government will allow five global champions and five domestic manufacturers in mobile phones manufacturing to start first under this scheme, names of which will be announced in the coming dates, he said.
According to industry estimates, mobile manufacturing companies have the potential to get an incentive of around Rs 7,500 crore if they scale up production to about Rs 1.5 lakh crore over the next five years under the PLI scheme.
The ministry also revealed that over 40 applications were also received for the Electronics Manufacturing Clusters (EMC) scheme aimed at boosting manufacturing of electronics components.
Pegatron, Apple's second-largest contract manufacturer, and Samsung were among 22 companies to have commited investments worth Rs11,000 crore while applying for the government's production-linked incentive scheme that seeks to establish India as a smartphone export hub rivalling northeast Asia's electronics powerhouses.
Prasad said Indian companies, including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services and Optiemus Electronics, have applied under the scheme and 10 companies have filed applications under the Specified Electronic Components Segment. "Global companies that have applied are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron", Prasad said. Container loads of goods from Apple's key contract manufacturer have already reached India in the wake of the pandemic and China's initial attempt to smother information about its outbreak.
Addressing a press conference Prasad said, " Under the Production-Linked Incentive Scheme, around 22 companies have applied. Apple (37 per cent) and Samsung (22 per cent) together account for almost 60 per cent of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country. Companies that have submitted applications for component manufacturing include Ascent Circuits and Visicon, the government said in a statement.
The global firms have proposed production to the tune of Rs 9 lakh crore in the next five years. It is estimated this will result in $153 billion worth of smartphones and components during the entire five-year period the scheme will run for. "Mobile phones worth about Rs 2 trillion are expected to be produced in the sub-Rs 15,000 category", the source said. If the manufacturers achieve that, it would significantly enhance annual exports of phone handsets from the existing $3 billion.
The Indian government did not prevent companies from any country from participating to the program, Prasad insisted in a call with reporters Saturday noon.
Though there is no such minimum retail invoice price per unit for Indian companies, the total incentive over five years for such firms has been capped at Rs 200 crore.