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Production-Linked Incentive (PLI) Scheme For Telecom

Production-Linked Incentive (PLI) Scheme For Telecom:

The Department of Telecommunications (DoT) has extended the production-linked incentive (PLI) scheme for telecom by one year, and has amended the scheme to raise the incentive rate by an additional 1 per cent, aimed towards incentivising design-led manufacturing in the sector.

  • The guidelines for the PLI Scheme for Telecom & Networking Products have been amended to introduce design-led manufacturing with additional incentive rates.
  • The design-led manufacturing scheme is open for both medium and small-scale enterprises (MSMEs) and non-MSMEs, including domestic and global companies.
  • The DoT also said applications for design-led manufacturing will be prioritised over other manufacturers.
  • The scheme requires an investment threshold of Rs 10 crore for MSMEs and Rs 100 crore for non-MSMEs, excluding land and building cost.
  • The Centre will provide additional incentives of over Rs 4,000 crore under the amended scheme.
  • The incentives will be based on incremental sales of the manufactured goods, and range between 4 per cent to 7 per cent for different categories over the years.
  • MSMEs will get an additional 1 per cent incentive in the first, second, and third years.
  • The DoT has also approved 11 new telecom and network products to the existing list of products that can be manufactured under the scheme.
  • Investment made by successful applicants in India from 1st April 2022 onwards and up to Financial Year 2025-2026 shall be eligible, subject to qualifying incremental annual thresholds.