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Production-Linked Incentive Scheme For The Telecom Sector

Production-Linked Incentive Scheme For The Telecom Sector:

The Union Cabinet has approved the production-linked incentive scheme for the telecom sector with an outlay of ₹12,195 crore over five years.

  • The implementation scheme will start on April 1, 2021.
  • The scheme is expected to encourage the production of equipment worth Rs 2.44 lakh crore and create direct and indirect employment for about 40,000 people.
  • The scheme is expected to bring an investment of over Rs 3,000 crore and generate significant direct and indirect employment and taxes.

About the PLI scheme:

  • The scheme aims to make India a global hub for manufacturing telecom equipment.
  • Its eligibility criteria include the achievement of a minimum threshold of cumulative incremental investment and incremental sales of manufactured goods.
  • The incentive structure ranges between 4% and 7% for different categories and years.
  • The financial year 2019-20 will be treated as the base year for computation of cumulative incremental sales of manufactured goods net of taxes.
  • The minimum investment threshold for MSMEs has been kept at Rs 10 crore and for others at Rs 100 crore.
    Once qualified, the investor will be incentivized up to 20 times of minimum investment threshold enabling them to utilise their unused capacity.