The Department of Telecommunications (DoT) earlier this week notified the norms for Production Linked Incentive (PLI) scheme to product telecom and networking products manufacturing in India. The telecom sector has a pivotal role in facilitating the growth of economy having key infrastructure and key enabler of digital connectivity and Digital India.
PLI scheme will promote telecom and networking products manufacturing in India with DoT proposing financial incentive to boost domestic manufacturing and attract investments in the target segments and networking products to promote “Make in India”.
Applicants will be subject to achievement of minimum threshold of cumulative incremental investment over period of four years and incremental sales of manufactured goods net of taxes over the base year. The minimum investment threshold of Rs 10 crores for MSME and Rs 100 crores for others will be the benchmark keeping land and building cost out of it.
The scheme will be effective from 1st April 2021 with investment permitted to be made in four years. The PLI scheme will be implemented within overall financial limits of Rs 12,195 crores only for implementation of the scheme over a period of 5 years.