Department of Telecom issues guidelines for Rs 12,195 crore PLI scheme

To promote domestic manufacturing in India, the Department of Telecom on Thursday issued the operational guidelines for the production-linked incentive (PLI) scheme of telecom networking products.

The scheme will open to both MSME and Non-MSME companies including domestic and global companies. Also, manufacturers with products with Indian technology are encouraged to apply, said a statement from the DOT.

The government on February 24 had notified the PLI Scheme.

"The PLI Scheme will be implemented within the overall financial limits of Rs 12,195 crores for implementation of the Scheme over a period of 5 years. For MSME category, financial allocation will be Rs 1000 crores," said the statement.

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 1st April, 2021. Investment made by successful applicants in India from 1st April, 2021 onwards and up to Financial Year (FY) 2024-2025 shall be eligible, subject to qualifying incremental annual thresholds. The support under the Scheme shall be provided for a period of five (5) years, i.e. from FY 2021-22 to FY 2025-26.

"Applicants can register for the Scheme from 4th June 2021 at https://www.pli-telecom.udyamimitra.in. Application window will be open up to 3rd July 2021," said the statement.

“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,” it said.

Welcoming the PLI scheme, India Cellular and Electronics Association (ICEA), described it as a “ Strong beginning and magic for the telecom industry."

"The PLI scheme by the DoT has energised the global telecom equipment companies and will encourage them to participate & scale up their production activities in India for the domestic and export market. The policy will encourage attracting large investments and employment in the telecom sector," Pankaj Mohindroo, Chairman, ICEA said in a statement.

"This will help the Indian champion companies to become globally competitive, attract investment in the areas of core competency and cutting-edge technology, ensure efficiencies, create economies of scale, enhance exports and make India an integral part of the global supply chain," he said.