The Cabinet has approved the Production Linked Incentive (PLI) Scheme for Telecom and Networking Products. The Scheme will be operational from April 1, 2021.
The scheme was finalized after widespread consultation with stakeholders like manufacturers, industry leaders and associations. The scheme outlay is Rs. 12,195 Crores over five years.
This approval comes in wake of very encouraging success of PLI related to Mobile and component manufacturing, which was announced in April 2020 during the height of Covid pandemic. In spite of July 31, 2020, being the last date for applying, it received a resounding response.
All major mobile component manufacturers of world are expanding their powerful footprints in India by making investments, starting exports and giving jobs to thousands of Indians.
Cabinet decision addresses another component of Atmanirbhar Bharat to make India a global hub of manufacturing telecom equipment.
The eligibility for the scheme will be subject to achievement of a minimum threshold of cumulative incremental investment and incremental sales of manufactured goods net of taxes.
The core component of this scheme is to offset the huge import of telecom equipment worth more than Rs. 50 thousand crores and reinforce it with “Made in India” products both for domestic markets and exports.
Scheme also addresses local manufacturing in MSME category because Government desires MSMEs to play an important role in the telecom sector.