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The Department of Telecommunications (DoT) on Monday extended the production-linked incentive (PLI) scheme in telecom by a year. Besides, it has amended the guidelines to introduce design-led manufacturing with additional incentive rates
DoT notified the PLI scheme on February 24, 2021, with a financial outlay of Rs 12,195 crore. A total of 31 companies, including 16 MSMEs and 15 non-MSMEs, including eight domestic and seven global companies, were given approval on October 14, 2021.
“After consultations with stakeholders, the guidelines for the PLI Scheme for Telecom & Networking Products have been amended to introduce design-led manufacturing, with additional incentive rates,” DoT said in a statement.
Based on feedback from stakeholders, including the selected PLI applicants, the department has extended the existing PLI scheme by one year. The existing PLI beneficiaries will be given the option to choose FY22 or FY23 as the first year of incentive. DoT has also approved the addition of 11 new telecom and networking products to the existing list, based on suggestions from the stakeholders, it added.
Eligible applicants can register for the scheme from June 21; the window will be open for 30 days, up to July 20. The applications are for balance funds of more than Rs 4,000 crore. This will give a boost to the manufacture of telecom and networking products , DoT noted.
Design-led manufacturing
To promote design-led manufacturing, DoT has invited applications from manufacturers as well as others, for availing of incentives under the PLI Scheme for five years commencing from April 1, 2022. Investments made by successful applicants in India from April 1 onwards and up to FY26 will be eligible, subject to qualifying incremental annual thresholds.
The scheme is open to both MSME and non-MSME companies, including domestic and global firms. Applications from design-led manufacturers will be prioritised over other manufacturers while shortlisting.
Design-led manufacturing is primarily aimed at supporting efforts for design of telecom products in India. It will recognise and encourage R&D-driven manufacturing in the country to enhance its contribution to the global value chain as envisaged in the National Digital Communication Policy, 2018, DoT said.
Applicants will have to satisfy minimum global revenue criteria to be eligible under the scheme. The company may decide to invest in single or multiple eligible products. The scheme stipulates a minimum investment threshold of Rs 10 crore for MSMEs and Rs 100 crore for non-MSME applicants.
Land and building costs will not be counted as investment. Eligibility will be subject to Incremental Sales of Manufactured Goods (covered under the Scheme Target Segments) over the base year (FY2019-20). The allocation for MSMEs has been enhanced to Rs 2,500 crore from Rs 1,000 crore.
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