1 min read.Updated: 14 Oct 2021, 04:03 PM ISTLivemint
The PLI scheme is being launched by DoT with the objective to boost domestic manufacturing in the telecom and networking products
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The central government on Thursday launched Production Linked Incentive (PLI) scheme for Telecom and Networking Products. The scheme will help in reducing India’s dependence on other countries for import of telecom and networking products, said Devusinh Chauhan, Minister of State of Ministry of Communications. He called upon the industry leaders to focus on making high quality productsand expressed the commitment to provide incentives and support to promote world class manufacturing in the country.
The PLI scheme is being launched by DoT with the objective to boost domestic manufacturing in the telecom and networking products by incentivising incremental investments and turnover with total outlay of ₹12,195 crore, the ministry said in a statement.
The scheme is effective from 1st April, 2021. Investment made by successful applicants in India from 1st April, 2021 onwards and up to FY 2024-25 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.
As per scheme guidelines, a total of 31 companies, comprising of 16 MSMEs and 15 Non-MSMEs (8 Domestic and 7 Global companies) have been found eligible and are being given approval under PLI scheme of Department of Telecommunications (DoT), Ministry of Communications.
As per commitments given by applicants, these 31 applicants are expected to invest ₹ 3345 crore in the next 4 years and generate incremental employment of more than 40,000 people with expected an incremental production of around ₹ 1.82 Lakh crore over the scheme period. The scheme is expected to boost domestic Research & Development of new products on which 15% of the committed investment could be invested.