The government is working on a production-linked incentive (PLI) scheme for non-electronic components used in the manufacturing of key telecom products, with the goal of accelerating their localisation, according to people familiar with the development.
In its discussions with stakeholders, according to the sources, the government has proposed two alternative models for linking incentives to a localisation roadmap. One option ties incentives to the mandatory localisation of electro-mechanical, plastic, and optical components. This would start with 30 per cent localisation of non-electronic bill of materials (BOM) in the second year, increase to 50 per cent in the third year, 70