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Building on the success of the Production Linked Incentive scheme (PLI) for mobile phones, the Union Cabinet, chaired by the Prime Minister Narendra Modi, approved the Production Linked Incentive Scheme 2.0 for IT Hardware with a budgetary outlay Rs. 17,000 crore, more than double the budget for the scheme first cleared in 2021.

The new scheme has a predetermined duration of six years, with the government anticipating an investment exceeding Rs 2,430 crore as a component of it. The projected increase in production value could reach Rs 3.35 lakh crore, leading to the potential creation of 75,000 direct jobs. When factoring in indirect employment opportunities, the total number of jobs could reach 2 lakh.

Electronics manufacturing in India has witnessed consistent growth with 17% CAGR in the last eight years. This year it crossed a major benchmark in production – 105 billion USD (about Rs 9 lakh crore). India has become the world’s second largest manufacturer of mobile phones. Exports of mobile phones crossed a major milestone of 11 billion USD this year (about Rs 90 thousand crore).

Salient features:

• PLI Scheme 2.0 for IT hardware covers laptops, tablets, all-in-one PCs, servers and ultra small form factor devices.
• The budgetary outlay of the scheme is Rs. 17,000 crore.
• The tenure of this scheme is 6 years.
• Expected incremental production is Rs. 3.35 lakh crore.
• Expected incremental investment is Rs. 2,430 crore.
• Expected incremental direct employment is 75,000.

Prime Minister of India, Narendra Modi and Prime Minister of Singapore, Lee Hsien Loong recently launched cross-border linkage between India and Singapore using their respective Fast Payment Systems, viz. Unified Payments Interface (UPI) and PayNow.

The UPI-PayNow linkage will enable users of the two fast payment systems in either country to make convenient, safe, instant, and cost-effective cross-border funds transfers using their respective mobile apps. Funds held in bank accounts or e-wallets can be transferred to / from India using just the UPI-id, mobile number, or Virtual Payment Address (VPA).

As per the RBI, to begin with, State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank will facilitate both inward and outward remittances while Axis Bank and DBS India will facilitate inward remittances. For Singapore users, the service will be made available through DBS-Singapore and Liquid Group (a non-bank financial institution). More banks will be included in the linkage over time.

Customers of the above participating banks can undertake cross-border remittances to Singapore using the bank’s mobile banking app / internet banking. To begin with, an Indian user can remit up to ₹60,000 in a day (equivalent to around SGD 1,000). At the time of making the transaction, the system shall dynamically calculate and display the amount in both currencies for convenience of the user.

Section 9A of the ID Act shall be attracted if transfer would result in the change of service conditions and reduction of employees.

Rejecting the contention of the employer that transfer was a service condition, the Hon’ble Supreme Court held as follows:

“7.8 Now, so far as the submission on behalf of the appellant that so far as the transfer is concerned, it is part of the service conditions and therefore Section 9A shall not be applicable is concerned, the same has no substance. The question is not about the transfer only, the question is about the consequences of transfer. In the present case, the nature of work/service conditions would be changed and the consequences of transfer would result in the change of service conditions and the reduction of employees at Dewas factory, for which the Fourth Schedule and Section 9A shall be attracted. ”

Copy of the judgement