Government amends guidelines for PLI Scheme for Telecom and Networking Products

Tags: Economy/Finance

The Guidelines for Production Linked Incentive (PLI) Scheme for Telecom and Networking Products have been revised to introduce design based manufacturing with additional incentive rates.

  • The PLI scheme has been amended to facilitate design-based manufacturing with an additional incentive rate of 1% over and above the existing incentive rates.

  • Additional 11 telecommunications and networking products have been added to the eligible products list.

  • Telecom PLI Scheme is extended by one year. 

  • In order to promote design-based manufacturing, the Department of Telecommunications (DoT) is inviting applications from design-based manufacturers as well as others to avail incentives under the PLI scheme for five years starting 1st April 2022.

  • Objective of the amendment

  • The Union Cabinet has approved a proposal to invite applications for 5G spectrum auction.

  • With an aim to create a strong ecosystem for 5G, the Union Budget 2022-23 proposes to introduce a scheme for design-based manufacturing as part of the existing PLI scheme.

  • Guidelines for PLI Scheme for Telecom and Networking products have been revised to introduce design based manufacturing with additional incentive rates.

  • Production Linked Incentives (PLI) Scheme

  • The Department of Telecommunications(DoT) had notified the Production Linked Incentive (PLI) Scheme on 24th February 2021. 

  • Its initial financial outlay was of ₹ 12,195 Crores.

  • As on October 14, 2021, a total of 31 companies including 8 domestic and 7 global companies including 16 MSMEs and 15 non-MSMEs were approved under the scheme. 

  • Objective of PLI Scheme

  • To undertake design based manufacturing as part of the existing PLI scheme, to create a strong ecosystem for 5G.

  • After consultation with stakeholders, the guidelines of PLI Scheme for Telecom and Networking products have been amended to introduce design based manufacturing with additional incentive rates.

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