Cabinet approves PLI scheme for telecom sector

The Union Cabinet has approved a Rs 12,195-crore Production Linked Incentive (PLI) scheme for domestic manufacturing of telecom and networking products such as switches, routers, radio access network, wireless equipment and other internet of things (IoT) access devices.

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The Production Linked Incentive (PLI) Scheme intends to promote manufacture of Telecom and Networking Products in India and proposes a financial incentive to boost domestic manufacturing and attract investments in the target segments of telecom and networking products in order to encourage Make in India.

The scheme will also encourage exports of telecom and networking products ‘Made in India’.

Support under the Scheme will be provided to companies/entities engaged in manufacturing of specified telecom and networking products in India.

Eligibility will be further subject to achievement of a minimum threshold of cumulative incremental investment over a period of four years and incremental sales of manufactured goods net of taxes (as distinct from traded goods) over the Base Year 2019-2020.

There will be a minimum investment threshold of Rs.10 crore for MSME with incentives from 7% to 4 % and Rs. 100 crore for others with incentives from 6% to 4 % over 5 year above Base Year.

The applicants with higher investments than specified threshold under MSME and Non MSME categories will be selected through transparent process.