DoT Issues Guidelines For Telecom Equipment PLI Scheme, Invites Applications

DoT added that it will grant approvals to 10 eligible applications each in MSME & non-MSME categories

The Department of Telecom (DoT) has notified the operational guidelines for the implementation of the production-linked incentive (PLI) scheme for telecom gear and networking equipment, for which applicants can start the registration process from 4 June, 2021

DoT has said that 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 MSMEs, financial allocation will be Rs 1,000 crores.

The scheme is open to both MSME and Non-MSME companies including domestic and global Companies. Manufacturers with products using Indian technology are encouraged to apply.

The scheme stipulates a minimum investment threshold of Rs 10 Crores for MSME and Rs 100 Crores for non-MSME applicants. DoT added that it will grant approvals to 10 eligible applications each in MSME & non-MSME categories. 

Out of the 10 applications in the non-MSME category, at least 3 applicants will be eligible domestic companies. The applications will be shortlisted from highest to lowest on the basis of committed cumulative incremental investment during the Scheme period. 

As per the guidelines, investments made by successful applicants in India from April 1, 2021, onwards and up to FY 2024-2025 shall be eligible for the scheme, subject to qualifying incremental annual thresholds. The support under the scheme shall be provided for a period of five years, i.e. from FY 2021-22 to FY 2025-26. 

The interested company may decide to invest in single or multiple eligible products. It further informed that land and building cost will not be counted as investment. Eligibility shall be further subject to incremental sales of manufactured goods, which are covered under scheme target segments, over the base year (FY2019-20).

The application window shall be open for 30 days i.e. up to 3 July, 2021.

The PLI scheme, which had been approved by the Cabinet in February 2021, was announced with the objective to boost domestic manufacturing, investments and export in telecom and networking products. The government expects the scheme to bring an investment of around Rs 3,000 crore and expects the scheme to create ‘global champions’ in India, adding that telecom products are an important aspect of the ‘Digital India’ initiative.