Report Wire - DoT extends production-linked incentive scheme for telecom by one 12 months

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DoT extends production-linked incentive scheme for telecom by one 12 months

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DoT extends production-linked incentive scheme for telecom by one year

The Department of Telecommunications (DoT) has prolonged the production-linked incentive (PLI) scheme for telecom by one 12 months and has amended the scheme to boost the inducement price by a further 1 per cent. The modification comes days after the nation took its first step in the direction of 5G rollout because the Union Cabinet cleared a proposal to ask purposes for spectrum auctions.

According to an official launch, the design-led manufacturing scheme is open for each medium and small-scale enterprises (MSMEs) and non-MSMEs, together with home and world corporations. The DoT additionally mentioned purposes for design-led manufacturing shall be prioritised over different producers. The scheme requires an funding threshold of Rs 10 crores for MSMEs and Rs 100 crores for non-MSMEs, excluding land and constructing price.

The incentives shall be primarily based on incremental gross sales of the manufactured items, and vary between 4 per cent to 7 per cent for various classes through the years. MSMEs will get a further 1 per cent incentive within the first, second, and third years. The DoT has additionally accepted eleven new telecom and community merchandise to the prevailing record of merchandise that may be manufactured underneath the scheme.

“For promoting design-led manufacturing, DoT is inviting applications from Design-led manufacturers as well as others, for availing incentive under the PLI Scheme for five years commencing from 1st April 2022. Investment made by successful applicants in India from 1st April 2022 onwards and up to Financial Year 2025-2026 shall be eligible, subject to qualifying incremental annual thresholds,” the Ministry of Communications mentioned in a press release.

The DoT had notified the PLI scheme for telecom and networking merchandise on February 24, 2021, with a monetary outlay of Rs 12,195 crore, over the 5 years. In October, it accepted 31 proposals entailing an funding of Rs 3,345 crore over the following 4 and a half years. The shortlisted entities included the likes of Nokia India, HFCL, Dixon Technologies, Flextronics, Foxconn, Coral Telecom, VVDN Technologies, Akashastha Technologies, and GS India

According to the federal government’s dashboard, to date, Rs 451 crore has been invested within the scheme, led primarily by world corporations who account for greater than Rs 240 crore of the overall funding. Additionally, the scheme has generated over 5,000 employment alternatives and gross sales value greater than Rs 9,000 crore have taken place underneath the scheme.