EDEN IAS

NEWS IMPULSE – PRODUCTION LINKED INCENTIVE SCHEME | 31 OCTOBER

<p style=”margin-bottom: 13px; text-align: center;”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:&quot;Cambria&quot;,&quot;serif&quot;”>SOURCE- THE HINDU</span></span></span></b></span></span></span></p>

<p style=”margin-bottom: 13px; text-align: center;”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:&quot;Cambria&quot;,&quot;serif&quot;”>GS PAPER &ndash;3</span></span></span></b></span></span></span></p>

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<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:&quot;Cambria&quot;,&quot;serif&quot;”>Context &nbsp;</span></span></span></b></span></span></span></p>

<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:&quot;Cambria&quot;,&quot;serif&quot;”>The government will introduce the production-linked incentive (PLI) scheme for more sectors to boost domestic manufacturing &ndash;NITI AYOG</span></span></span></span></span></span></p>

<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:&quot;Cambria&quot;,&quot;serif&quot;”>Objective &nbsp;</span></span></span></b></span></span></span></p>

<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:&quot;Cambria&quot;,&quot;serif&quot;”>To incentivize investors in this country to put up globally comparable capacity in scale and competitiveness</span></span></span></span></span></span></p>

<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:&quot;Cambria&quot;,&quot;serif&quot;”>Key highlights</span></span></span></b></span></span></span></p>

<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:&quot;Cambria&quot;,&quot;serif&quot;”>&bull; Incentives of 4-6 percent to electronics companies which manufacture mobile phones and other electronic components such as transistors, diodes, thyristors, resistors, capacitors, and nano-electronic components such as micro electromechanical systems</span></span></span></span></span></span></p>

<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:&quot;Cambria&quot;,&quot;serif&quot;”>&bull; Companies that make mobile phones which sell for Rs 15,000 or more will get an incentive of up to 6 percent on incremental sales of all such mobile phones made in India.</span></span></span></span></span></span></p>

<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:&quot;Cambria&quot;,&quot;serif&quot;”>Benefits of the scheme</span></span></span></b> &nbsp;</span></span></span></p>

<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:&quot;Cambria&quot;,&quot;serif&quot;”>Attract big foreign investment in the sector, while also encouraging domestic mobile phone makers to expand their units and presence in India.</span></span></span></span></span></span></p>

<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><b><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:&quot;Cambria&quot;,&quot;serif&quot;”>Tenure of the scheme</span></span></span></b> &nbsp;</span></span></span></p>

<p style=”margin-bottom:13px”><span style=”font-size:11pt”><span style=”line-height:115%”><span style=”font-family:Calibri,sans-serif”><span style=”font-size:12.0pt”><span style=”line-height:115%”><span style=”font-family:&quot;Cambria&quot;,&quot;serif&quot;”>The PLI scheme will be active for five years with the financial year (FY) 2019-20 considered as the base year for the calculation of incentives. This means that all investments and incremental sales registered after FY20 shall be taken into account while computing the incentive to be given to each company.</span></span></span></span></span></span></p>

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