The Department of Telecommunications (DoT) has clarified that if a company currently availing benefits of telecom equipment production-linked incentive (PLI) scheme wants to revise its investment and net sales to get additional 1% benefit for design-led manufacturing, it must apply afresh.
After being selected, the company will have to exit the existing approval and forego its investment made during 2021-22.
“The existing company cannot revise committed investment/net incremental sales forecast without participation and selection under the window provided now,” DoT said in a list of frequently asked questions released recently.
However, the existing company can claim the incentive for 2021-22 with the achieved investment or net sales figures under normal rates of PLI scheme and get higher rates for products qualified under design-led manufacturing criteria for the remaining four years. The total year-wise incentive payable, though, shall be limited to the year-wise incentive amount already approved for the company.
The DoT further clarified that though the PLI scheme has been extended by one year, companies can claim benefits for only five years and not six years. The companies will be given an option to choose 2021-22 or 2022-23 as the first year of incentive.
The department had notified the PLI scheme for telecom equipment manufacturing with an outlay of Rs 12,195 crore spread over five years, on February 24 last year. A total of 31 companies, comprising 16 micro, small and medium enterprises (MSMEs) and 15 non-MSMEs, eight local and seven foreign companies, were given approval on October 14, 2021.
In April, the PLI scheme was amended to facilitate design-led manufacturing with an additional incentive rate of 1% over and above existing incentive rates. For this, Rs 4,000 crore was set aside from the existing Rs 12.195 crore corpus for the purpose. In addition, telecom and networking products were added to the list of eligible products.
Companies wanting to apply for design-led manufacturing can submit their applications by August 25.
The companies which are applying for design-led manufacturing and which declare that only some products would comply with the criteria, shall be treated as non-compliant. However, these companies will get priority over companies in whose case all the products are non-compliant with the design-led manufacturing criteria.
“Applicant companies who apply for all products complying with design-led criteria should give a certificate declaring that all the products manufactured by them under this scheme satisfy the criteria as defined in Clause 2.8 A, to be given priority over manufacturers not compliant with design-led criteria at the time of ranking for selection under the scheme,” said the DoT.
Such companies will have to demonstrate their capabilities to comply with design-led manufacturing criteria at the time of scrutiny of the application. Pehal News