DoT announces guidelines for PLI scheme for telecom, networking equipment

DoT announced operational guidelines for Production Linked Incentive Scheme for telecom and networking equipment, notified on February 24 this year after extensive consultations with stakeholders

The Department of Telecommunications (DoT) on Thursday announced operational guidelines for the Production Linked Incentive (PLI) Scheme for telecom and networking equipment, notified on February 24 this year after extensive consultations with stakeholders.

The scheme envisages creation of global champions out of India who have the potential to grow in size and scale using cutting edge technology and penetrate the global value chains. Telecom products play an important role in the larger vision of "Digital India".

The PLI Scheme will be implemented within the overall financial limits of Rs 12,195 crores over five years. For MSME category, allocation will be Rs 1000 crores.

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

The scheme will be effective from April 1, 2021.

Investment made by successful applicants in India from April 1, 2021 onwards and up to 2024-2025 shall be eligible under the scheme, subject to qualifying incremental annual thresholds.

The support under the scheme shall be provided for a period of five years from 2021-22 to 2025-26.

According to an official release, the sheme is open to both MSME and Non-MSME companies including domestic and global Companies. Also, manufacturers with products made with Indian technology are encouraged to apply.

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 five years.

It is also expected that the scheme will bring 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 said

Interested eligible applicants can start the registration process for the scheme from June 4 and the application window will be open for 30 days up to July 3.

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 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 shall grant approvals to 10 eligible applications each in MSME and non-MSME categories.

Out of the 10 applications in non-MSME category, at least three applicants will be eligible domestic companies. The applications will be short listed from highest to lowest on the basis of committed cumulative incremental investment during the scheme period, the release said.