A) What is PLI Scheme in Mobile Manufacturing? On April 1, 2020, the Production Linked Incentive (PLI) Program for Large-Scale Electronics Manufacturing was notified to enhance domestic electronics manufacturing and attract significant investments. For five years after the base year (2019-20), qualified companies will get 4% to 6% on incremental sales of manufactured items, including mobile phones and selected electronic components. B) Criteria for Selection? >For International- Revenue of more than 10k Crores in base year. >For Domestic - Revenue of more than 100 Crores in the base year. C) Targets and Incentives for mobile phones having invoice value >Rs.15000? International Companies Domestic Companies D) 16 Companies which were selected in the PLI Scheme? 1) Wistron Infocomm 2) Foxconn Hon Hai 3) Pegatron Technology 4) Samsung India Electronics 5) Rising Stars Mobile. 6) Bhagwati Products 7) Optiemus Electronics Limited 8) Padget Electronics (Dixon) 9) LAVA International 10) United Telelinks Neolyncs 11) AT & S India 12) Ascent Circuits 13) Sahasra Semiconductors 14) Visicon Power Electronics. 15) Walsin Electronics 16) Neolync India E) What is the current status of manufacturing of Mobile Phones in India? Mobile Phone total production in India is worth $33 Billion and out of that 95% production is done by foreign players such as Samsung, Foxconn, Wistron, and Pegatron and rest 5% is done by domestic manufacturer. Total $5.5 Billion of mobile phones were exported by India in 2022. Out of that International manufacturers have 70-80% market share. Dixon exported worth ~80 Million dollar of mobile phones. F) Out of 16 companies that were selected under PLI scheme, only 6 are eligible to get incentives, As rest companies not able to meet the targets. Only 2 domestic companies i.e. Dixon and UTNPL are eligible for incentives. Lava not able to get any incentives as they were not able increase incremental sales and capex. G) Why Companies such as Lava not able to capitalise on PLI Scheme? Lava, despite expanding its manufacturing facilities, was unable to produce enough phones to become eligible for PLI incentives since the company's initial public offering (IPO) was delayed and they were unable to secure further financing to make inroads. Lava, Bhagwati products, and Optiemus Electronics did not meet the 2021-22 targets and likely to miss 2022-23 targets as well. Although Lava has partnered with Finnish mobile maker HMD Global to manufacture smartphones and Motorola for feature phones, many smartphone brands are reluctant to work with it due to intellectual-property-theft concerns as Lava also has its own brands. Lava, however, place the responsibility on the base year for incremental sales. "When the PLI programme began, Lava had already begun producing smartphones in huge quantities. It was difficult for them to expand up since their quantities would have been more than Dixon's today. Source: Data collected from Government website and Ken