Question

Q. With reference to the Production Linked Incentive scheme, consider the following statements:

Which of the above statements is/are correct?

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Answer 1

The correct option is D 1, 2 and 3

Explanation:

The scheme was introduced as a part of the National Policy on Electronics by the IT Ministry to give incentives of 4-6% to electronic companies, manufacturing electronic components like mobile phones, transistors, diodes, etc. Hence, the 1st statement is correct.

• The main aim of this scheme is to invite foreign investors to set up their manufacturing units in India and also promote the local manufacturers to expand their units and generate employment. Hence, the 2nd statement is correct.
• The PLI scheme will be active for five years with financial year (FY) 2019-20 considered as the base year for calculation of incentives.
• The first sector which the PLI scheme had targeted was the Large Scale Electronics Manufacturing in April 2020, and by the end of the year (November 2020), 10 more sectors including food processing, telecom, electronics, textiles, specialty steel, automobiles, and auto components, solar photovoltaic modules and white goods such as air conditioners and LEDs were also expanded under the PLI scheme.
• As far as the eligibility is concerned, all electronic manufacturing companies which are either Indian or have a registered unit in India are eligible to apply for the scheme. Hence, the 3rd statement is also correct.