Operational Guidelines for PLI Scheme for telecom & networking equipment announced

New Delhi, June 4, 2021

The Department of Telecommunications (DoT) on Thursday announced the operational guidelines for the Production Linked Incentive (PLI) Scheme after extensive consultations with stakeholders.

The scheme envisages to create global champions with the potential to grow in size and scale using cutting edge technology and thereby penetrate the global value chains. Telecom products play an important role in the larger vision of “Digital India”, an official press release said.

The PLI Scheme will be implemented within the overall financial limits of Rs 12,195 crore for the implementation of the scheme for 5 years. For the MSME category, financial allocation will be Rs 1000 crore.

Small Industries Development Bank of India (SIDBI) has been appointed as the Project Management Agency (PMA) for the PLI scheme.

The scheme, notified on February 24, became effective from April 1, 2021. The investment made by successful applicants in India from April onwards and up to financial year (FY) 2024-2025 will be eligible, subject to qualifying incremental annual thresholds. The support under the scheme shall be provided for five years, from FY 2021-22 to FY 2025-26.

The scheme is open to both MSME and non-MSME companies including domestic and global Companies. Also, manufacturers with products with Indian technology are encouraged to apply.

Interested eligible applicants can start the registration process for the scheme from June 4, 2021, here. The application window shall be open for 30 days up to July 3.

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 Rs 10 crore for MSME and Rs 100 crore for non-MSME applicants. Land and building cost will not be counted as investment. Eligibility shall be further subject to Incremental Sales of Manufactured Goods (covered under Scheme Target Segments) over the base year (FY2019-20).

The Department of Telecommunications will grant approvals to 10 eligible applications each in MSME and non-MSME categories. Out of the 10 applications in the non-MSME category, at least three applicants will be eligible domestic companies. The applications will be shortlisted from highest to lowest based on committed cumulative incremental investment during the scheme period.

"It is estimated that full utilisation of the scheme funds is likely to lead to incremental production of around Rs 2.4 lakh crore with exports of around Rs 2 lakh crore over 5 years. It is also expected that the scheme will bring in an investment of around Rs 3,000 crore and generate huge direct and indirect employment. This is in line with the larger objective of 'Make in India'," the release added.

NNN