The Ministry of Electronics and Information Technology (MeitY) on Friday notified the Mobile Phone Manufacturing Scheme (MPMS), aimed at incentivising the domestic assembly of smartphones and greater local value addition.
The Rs 62,500 crore scheme had been approved by the Union Cabinet on July 15, and continues the PLI Scheme for Large Scale Electronics Manufacturing (LSEM), which ran from 2020 to the last financial year.
With the notification, the Ministry provided fresh information on how the scheme would be operationalised. For instance, phone makers will receive additional incentives for sourcing certain parts domestically.
This is on top of the base incentive, tapering down from 2.75-2.25% over the five-year tenure, with rates of 2.25-5% depending on the year and the incremental sales, for the assembly itself. These additional incentives amount to 1.5%, with individual component incentives ranging from 0.2-0.5%.
