DoT announces PLI guidelines for Telecom & Networking equipment

The Department of Telecommunications (DoT) today announced the “Production Linked Incentive” (PLI) operational guidelines. The guidelines have been issued today after extensive consultations with the stakeholders as DoT looks to boost domestic manufacturing, investments, and exports in telecom and networking products. The Department of Telecommunications (DoT) had earlier this year notified the “Production Linked Incentive (PLI) Scheme” on 24th February 2021.

The PLI scheme aims to create a global champions out of India who have the potential to grow in size and scale with the usage of cutting edge technology and penetrate the global value chains. The scheme will be implemented within the overall financial limit of Rs 12,195 Crores only (Rupees Twelve Thousand One Hundred and Ninety-Five Crore only) for implementation. The scheme will be implemented over a period of 5 years with MSME category getting financial allocation of Rs 1000 crores.

The Telecom Department has appointed Small Industries Development Bank of India (SIDBI) as the Project Management Agency (PMA) for the PLI scheme. The PLI scheme is effective starting April 1, 2021 with investment made by successful applicants in India from 1st April, 2021 onwards and up to Financial Year (FY) 2024-2025 eligible for the scheme. The applications however need to satisfy the qualifying annual incremental thresholds. The PLI scheme will offer support for a period of 5 years from FY 2021-22 to FY 2025-26.

DoT has laid open the PLI scheme to both MSME and Non-MSME companies including Domestic and Global Companies with manufacturers offering products with Indian technology also encouraged to apply.

“Interested eligible Applicants can start the registration process for the Scheme from 4th June 2021 at https://www.pli-telecom.udyamimitra.in . The Application window shall be open for 30 days i.e. up to 3rd July 2021.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 Crores for MSME and Rs 100 Crores 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),” said DoT in a press release.

DoT will grant approvals to 10 eligible applications each in MSME and non-MSME category. Out of the 10 applications in the non-MSMEs, atleast 3 companies will be eligible domestic companies. The applications will be shortlisted by DoT on the basis of highest to lowest on the basis of 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 ₹ 2.4 Lakh Crores with exports of around ₹ 2 Lakh Crores over 5 years. It is also expected that the Scheme will bring investment of around ₹ 3,000 crore and generate huge direct and indirect employment. This is in line with the larger objective of “Make in India,” added DoT in its media release.