Govt extends telecom PLI scheme by 1 year

Under the amended scheme, The Centre will provide additional incentives of over Rs 4,000 crore

June 22, 2022

The PLI scheme was launched last year with an allocation of INR 12,915 crore

31 companies were selected under the scheme last October

The applications from design-led manufacturers will be prioritised, to support their efforts in designing telecom products in India

The scheme is open to both Micro, Small and Medium Enterprises (MSMEs) and non-MSMEs

The government has extended the productivity-linked incentive scheme for the telecom industry by another year and has expanded its scope to cover design-led manufacturing. Under the amended scheme, The Centre will provide additional incentives of over Rs 4,000 crore, according to The Department of Telecommunications (DoT).

According to the DoT, the PLI scheme was launched last year with an allocation of INR 12,915 crore and 31 companies were selected under the scheme last October. As per government reports, the beneficiaries will be able to select either FY22 or FY23 as their first year to avail of incentives under the scheme.

According to a government statement, the applications from design-led manufacturers will be prioritised, to support their efforts in designing telecom products in India. This will also encourage R&D-driven manufacturing in the country to enhance its contribution to the global value chain. 

The scheme is open to both MSMEs and non-MSMEs, including domestic and global companies, according to the statement. The allocation for MSMEs has been increased from INR 1,000 crore to INR 2,500 crore. As per the statement, the PLI scheme stipulates a minimum investment threshold of Rs 10 crore for MSME and Rs 100 crore for non-MSME applicants.

The statement further added companies can invest in single or multiple eligible products. 

According to the government, the telecom policy has been amended to build a strong 5G ecosystem.