Samsung Electronics, one of the world’s largest companies making electronics products, may face a major setback in India. The company can be taken out of India’s ambitious PLI scheme. In such a situation, Samsung Electronics may have to be deprived of all the benefits of this scheme, which are given by the government to encourage Smartphone Manufacturing in India.
The company is in talks with the government
According to a news from ET, government officials feel that there have been irregularities in invoicing by Samsung Electronics. This is the reason why Samsung Electronics can be excluded from the scope of PLI scheme i.e. production linked incentive scheme. Although Samsung says that it is in talks with the government to resolve the matter, which has reached a long way.
Samsung Electronics had claimed
Samsung Electronics had claimed that it has made additional sales of Rs 15 thousand crore in the financial year 2020-21 as compared to the year before and on the basis of this it claimed an incentive of Rs 900 crore under the PLI scheme. To take advantage of the incentives given by the government, Samsung had to manufacture handsets worth about Rs 15,000 crore.
Benefits received by these companies
However, after the claim by the company, the Ministry of Electronics and Information Technology says that it has found some irregularities in the invoicing. For this reason, the incentive given to Samsung Electronics has been stopped. On the other hand, other manufacturers like Foxconn’s Hon Hai, Wistron and Dixon Technologies have received incentives from the government for the financial year 2021-22.
PLI scheme benefited here
The Central Government has started the PLI scheme to speed up the manufacturing of smartphones and other electronics in India. India also seems to be benefiting from the PLI scheme. After the Corona epidemic, there has been a lot of boom in the manufacturing of smartphones in the country during the last few years. Due to this, India’s smartphone exports are also increasing. Companies like Foxconn and Wistron have recently informed about setting up new plants, so that they can speed up their manufacturing.
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