Telecom PLI scheme extended by a year by Govt

21 Jun 2022 , 10:06 AM

The government has increased the telecom industry’s productivity-linked incentive plan for another year and expanded its scope to include design-led manufacturing. Under the modified program, the Centre would give extra incentives worth around Rs 4,000 crore.

The Department of Telecommunications stated that the decision to change the program was made after consulting with stakeholders who had expressed concerns about the system’s aggressive incremental and production objectives for the first year 2021-22.

Last February, the department announced the PLI plan, with a budget of Rs 12,195 crore. Last October, thirty-one businesses were chosen for the program. Beneficiaries will be allowed to choose between 2021-22 and 2022-23 as the first year in which to take advantage of the incentives.

The policy has also been changed in order to create a robust environment for 5G, according to the government.

“The initiative is available to both MSME and non-MSME businesses, as well as domestic and international businesses.” During the shortlisting process, submissions from design-led firms will be prioritized above those from other manufacturers. Design-led manufacturing is primarily intended to aid in the development of telecom goods in India.

“As intended in the National Digital Communication Policy, 2018, it would recognize and support R&D-driven manufacturing in the country to strengthen its contribution to the global value chain,” the government stated in a news statement.

To be eligible for the plan, applicants must meet the minimum worldwide revenue requirements. Companies can invest in a single product or a number of items that are suitable. The plan has a Rs 10 crore minimum investment requirement for MSME applicants and Rs 100 crore for non-MSME applicants.

The cost of land and construction will not be considered an investment. In addition, increased sales of manufactured products (covered within scheme target categories) above the base year will determine eligibility (FY2019-20). The MSME budget has been increased from Rs 1,000 crore to Rs 2,500 crore, according to the statement.