Subsidy For Electronics and Information Technology (DeitY)

Research & Development

Scheme1: For setting up of Semiconductor Fabs in India

Capital Expenditure / Investment incurred on Building, Plant, Machinery, Clean rooms, Equipment and Associated Utilities: This shall include expenditure on building, plant, machinery, clean rooms, equipment, and associated utilities (including used / second hand / refurbished) as well as tools, dies, molds, jigs, fixtures (including parts, accessories, components, and spares thereof), etc.

Capital Expenditure / Investment incurred on Research and Development (R&D): This shall include expenditure on in-house and captive R&D. Such expenditure shall include test and measuring instruments, purchase of design tools, software cost and license fee, expenditure on technology, IPR, Patents and Copyrights for R&D purpose.

Capital Expenditure / Investment related to Transfer of Technology (ToT) Agreements: This shall include cost of technology purchase related to manufacturing of goods for which application is made under the Scheme. Any cost associated with ToT or licensing of the process between JV partners shall not be considered as part of the ToT cost.

The Scheme shall be applicable for investments in new units as well as expansion of capacity / modernization and / or diversification of existing units. The minimum investment thresholds are same for new units or expansion of capacity / modernization and / or diversification by existing units.

Research & Development

Scheme 2: The Operation of Production Linked Incentive Scheme - 2.0 for IT Hardware

CategoryIncremental InvestmentIncremental Sales of Manufactured Goods over Base Year
Global Companies
i. Laptops (Invoice value of INR 30,000 and above),
ii. Tablets (Invoice value of INR 15,000 and above),
iii. All-in-One PCs
iv. Servers
v. Ultra Small Form Factor (USFF)
INR 500 Crore over 6 Years Cumulative Minimum
Year 1: INR 50 Crore
Year 2: INR 150 Crore
Year 3: INR 250 Crore
Year 4: INR 350 Crore
Year 5: INR 450 Crore
Year 6: INR 500 Crore
Year 1: INR 1000 Crore
Year 2: INR 2500 Crore
Year 3: INR 5000 Crore
Year 4: INR 10000 Crore
Year 5: INR 12000 Crore
Year 6: INR 15000 Crore
Hybrid (Global/Domestic) companies
i. Laptops (Invoice value of INR 30,000 and above)
ii. Tablets (Invoice value of INR 15,000 and above)
iii. All-in-One PCs
iv. Servers
v. (Ultra Small Form Factor (USFF)
INR 250 Crore over 6 Years Cumulative Minimum
Year 1: INR 25 Crore
Year 2: INR 75 Crore
Year 3: INR 125 Crore
Year 4: INR 175 Crore
Year 5: INR 225 Crore
Year 6: INR 250 Crore
Year 1: INR 500 Crore
Year 2: INR 1250 Crore
Year 3: INR 2500 Crore
Year 4: INR 5000 Crore
Year 5: INR 6000 Crore
Year 6: INR 7500 Crore
Domestic Companies
i. Laptops
ii. Tablets
iii. All-in-One PCs
iv. Servers
v. (Ultra Small Form Factor (USFF)
INR 20 Crore over 6 Years Cumulative Minimum
Year 1: INR 4 Crore
Year 2: INR 8 Crore
Year 3: INR 12 Crore
Year 4: INR 15 Crore
Year 5: INR 18 Crore
Year 6: INR 20 Crore
Year 1: INR 50 Crore
Year 2: INR 100 Crore
Year 3: INR 200 Crore
Year 4: INR 300 Crore
Year 5: INR 400 Crore
Year 6: INR 500 Crore

1. Expenditure incurred on Plant, Machinery, Equipment and Associated Utilities

2. Expenditure incurred on Research and Development (R&D)

3. Expenditure related to Transfer of Technology (ToT) Agreements

4. Expenditure incurred on Land and Building

For the purpose of determining eligibility of an applicant (for all the categories of application) with respect to Net Incremental Sales for any year, the net sales of Target Segment goods manufactured in India for such year over the Base Year shall be considered, irrespective of Invoice Value.

Research & Development

Scheme 3: Production Linked Incentive Scheme (PLI) for IT Hardware

IT Hardware Companies: Consolidated Global Manufacturing Revenue of the applicant (including its Group Companies) in the base year should be greater than lNR 5,000 crore for the target segment or greater than lNR 10,000 crore for electronics hardware products / sub-assemblies / components.

Domestic Companies: Consolidated Global Manufacturing Revenue of the applicant (including its Group Companies) in the base year should be greater than INR 10 crore for the target segment or greater than INR 20 crore for electronics hardware products / sub-assemblies / components.

1. Expenditure incurred on Plant, Machinery. Equipment and Associated Utilities

2. Expenditure incwTed on Research and Development (R&D)

3. Expenditure related to Transfer of Technology (ToT) Agreements

4. Expenditure incurred on Land and Building

Category Proposed Incentive Rate Incremental Investment after 31.03.2021 Incremental Sales of Manufactured Goods over Base Year
IT Hardware Companies
(i) Laptops (Invoice value of INR 30,000 and above).
(ii) Tablets (Invoice value of INR 15,000 and above),
(iii) All-in-One PCs
(iv) Servers
Year 1: 4%
Year 2: 3%
Year 3: 2%
Year 4: 2%/ 1%
INR 500 Crore over 4 Years
Cumulative Minimum (Crore):
Year 1: 50
Year 2: 150
Year 3: 300
Year 4: 500
Year 1: INR 1,000 Crore
Year 2: INR 2,500 Crore
Year 3: INR 5,000 Crore
Year 4: INR 10,000 Crore
Domestic Companies
(i) Laptops
(ii) Tablets
(iii) All-in-One PCs
(iv) Servers
INR 20 Crore over 4 Years
Cumulative Minimum (Crore):
Year 1:4
Year 2: 8
Year 3: 14
Year 4: 20
Year 1: INR 50 Crore
Year 2: INR 100 Crore
Year 3: INR 200 Crore
Year 4: INR 300 Crore

Research & Development

Scheme 4: Electronic Manufacturing Clusters (EMC)

This scheme aims to provide support for the development of world-class infrastructure to attract investments in the Electronics Systems Design and Manufacturing (ESDM) sector.

Greenfield EMC: Provides 50% of the project cost, with a maximum of Rs. 50 crore for every 100 acres of land.

Brownfield EMC: Covers 75% of the project cost, with a maximum of Rs. 50 crore per project

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