The Department of Telecommunications (DoT) in India announced the operational guidelines for the production-linked incentive (PLI) and invited applications for the scheme for telecom and networking equipment.
DoT said in a release that the PLI scheme worth INR 12,195 crore (GBP 1.18 billion) would take effect from April 1, 2021.
"With the objective to boost domestic manufacturing, investments and export in the telecom and networking products Department of Telecommunications (DoT) notified the “Production Linked Incentive (PLI) Scheme" on 24th February 2021, said the release.
Interested, eligible applicants could register for the scheme from June 4. The application window will be open for 30 days till July 3. Applicants would have to meet the minimum revenue criteria. The company may decide to invest either in single or multiple eligible products. The applications will be shortlisted from highest to lowest based on committed cumulative incremental investment during the scheme period.
The scheme envisages creating global champions out of India who has the potential to grow in size and scale using cutting-edge technology and thereby penetrate the global value chains. Telecom products play an important role in the larger vision of “Digital India".
The Department of Telecommunications shall grant approvals to 10 (ten) eligible applications each in MSME & non-MSME categories. Out of the 10 applications in the non-MSME category, at least 3 (three) Applicants will be eligible Domestic companies. The applications will be short-listed from highest to lowest based on committed cumulative incremental investment during the Scheme period.
According to media reports, telecom gear makers such as Ericsson, Nokia, and HFCL are keen to expand their operations in India. Global companies including Samsung, Cisco, Ciena, and Foxconn have also "shown interest" in setting up manufacturing bases in the country for telecom and networking products for the domestic market and exports.
It is estimated that full utilisation of the Scheme funds is likely to lead to incremental production of around INR 240,000 crores with exports of around INR 200,000 crores over 5 years. (1 crore = 10 million). It is also expected that the Scheme will bring an investment of around INR 3,000 crore and generate huge direct and indirect employment. This is in line with the larger objective of “Make in India.”
