Govt announces Rs 12,195 crore PLI scheme for telecom sector

The Government has notified Production Linked Incentive (PLI) Scheme on 24 February 2021 to promote Telecom and Networking Products manufacturing in India within overall financial outlay of Rs.12,195 Crore over 5 years.

The scheme guidelines has following provisions for MSME Category:

• The Scheme stipulates a minimum investment threshold of Rs. 10 Crore for MSME and Rs. 100 Crore for non MSME applicants.
• For MSME category, there is financial allocation of Rs. 1,000 Crore out of Rs. 12,195 Crores over a period of 5 years.
• Higher incentives are provided for MSMEs as compared to NON MSMEs in first 3 years.

Total 31 applicants have been approved under the Scheme, out of which 16 are MSME, 8 Non- MSME (Domestic) and 7 Non-MSME (Global).

The projected investment proposed in the telecom Sector under the PLI Telecom Scheme is Rs. 3,344.90 crores.

The financial outlay reserved for this scheme over the scheme period is Rs. 12,195 crores.

31 Companies have been selected under the PLI Scheme for manufacturing of telecom and networking products in India are detailed at Annexure.

To reduce dependence on other countries for importing telecom and networking products, the Government has taken steps like imposition of basic custom duty (ranging from 10-20%) on certain identified telecom products and notified Public Procurement (Preference to Make in India) Order on 29 August 2018.

CT Bureau