The government on Thursday issued the operational guidelines for the production-linked incentive (PLI) scheme of telecom networking products, to promote manufacturing in India.

The Department of Telecommunications on February 24 had notified the PLI Scheme. The scheme is open to both MSME (Micro, Small and Medium Enterprises) and non-MSME companies including domestic and global. Also, manufacturers with products with Indian technology are encouraged to apply, the DoT said in a statement.

“The PLI scheme will be implemented within the overall financial limits of ₹12,195 crore over a period of five years. For MSME category, financial allocation will be ₹1,000 crore. Small Industries Development Bank of India (SIDBI) has been appointed as the Project Management Agency (PMA) for the PLI scheme,” it said.

The scheme will be effective from April 1. Investment made by successful applicants in India from April 1 onwards and up to FY 2024-25 will be eligible, subject to qualifying incremental annual thresholds, it said. The support under the scheme will be provided for five years (FY 2021-22 to FY 2025-26).

Eligibility criteria

The DoT said that the application window will be open for 30 days (till July 3) and the applicants will have to satisfy the minimum 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 ₹10 crore for MSME and ₹100 crore for non MSME applicants. Land and building cost will not be counted as investment,” it said.

It is estimated that full utilisation of the scheme funds is likely to lead to incremental production of around ₹2.4-lakh crore with exports of around ₹2-lakh crore over five years. It is also expected that the scheme will bring investment of around ₹3,000 crore and generate direct and indirect employment.

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