Extension of Telecom PLI scheme

June 21, 2022

The Department of Telecommunication (DoT) has amended the Production Linked Incentive (PLI) scheme for promoting telecom and networking products manufacturing, based on the feedback of stakeholders.

What are the amendments?

DoT has extended the scheme by one year.
It has announced an additional 1% incentive rate, over and above the existing rates.
Existing PLI beneficiaries will have an option to select either financial year 2021-22 or financial year 2022-23 as first year of incentive.
11 new telecom and networking products has been approved to the existing list, on the basis of suggestions of stakeholders.
Guidelines for PLI Scheme for Telecom & Networking Products have also been amended, in order to introduce Design-led Manufacturing along with additional incentive rates.
Allocation for MSMEs has been increased from Rs 1000 crore to Rs 2,500 crore.

Design-led manufacturing

For the promotion of design-led manufacturing, telecom department has invited applications from Design-led manufacturers others, to avail incentives under PLI Scheme for five years starting from April 1, 2022.

Which investments are eligible?

Investment by successful applicants in India from April 1, 2022 to Financial Year 2025-2026 shall be eligible. Eligibility is subject to qualifying incremental annual thresholds.

Who can apply for the scheme?

MSME and Non-MSME companies, including domestic and global, are allowed to apply to the scheme. However, applications from Design-led manufacturers will be given priority over manufacturers, while shortlisting them.

Minimum investment threshold

The minimum investment threshold under the scheme is Rs 10 crore for MSMEs while Rs 100 crores for non-MSMEs applicants. Land and building costs will not be counted under investments. Eligibility of the investment is subject to incremental sales of manufactured goods over base year FY 2019-20.

When will registration start?

Applicants can start the registration process for the scheme from June 21, 2022. Application window stands open for 30 days. Registration will end on July 20, 2022.

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