PLI scheme: Mobile phone-makers find it difficult to meet th

PLI scheme: Mobile phone-makers find it difficult to meet the target for 2022, too


April 12, 2021
They face supply chain disruptions amid the global shortage in semiconductors
Owing to pandemic-related challenges and supply chain disruptions amid the global shortage in semiconductors, mobile phone-makers under the production-linked incentive (PLI) scheme are finding it challenging to meet the scheme’s targets for 2022 as well after having already missed the 2021 targets.
“The situation is very stressful at the moment for mobile manufacturers,” SN Rai, owner of Lava International Ltd, told
BusinessLine. When asked if Lava is confident of meeting the targets this year, he said: “It looks difficult (and) extremely unlikely primarily because of two to three reasons. One is the pandemic. We don’t have an issue on our domestic demand, but there is an issue on the export demand because of the pandemic, primarily in countries like Africa and other places. And the most critical (factor) is that because of this pandemic the supply chain is badly disrupted. We have a serious shortage of chipsets and semiconductors worldwide. So, these are the multiple reasons due to which we believe that it’s not feasible to achieve the target and take credit of the incentives.”

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