PLI scheme worth Rs 12,195 cr for telecom, networking equipment announced; here’s how to apply–business today

Clipped from: https://www.businesstoday.in/sectors/telecom/pli-scheme-rs-12195-cr-telecom-networking-equipment-announced-how-apply/story/440782.html

Applicants can start the registration process for the scheme from June 1, 2021, at pli-telecom.udyamimitra.in. The application window will be open for 30 days i.e. up to 3rd July 2021

Small Industries Development Bank of India has been appointed as Project Management Agency for PLI scheme

The telecom department has announced guidelines for the PLI (production linked incentive) scheme for telecom and networking equipment, which is aimed at making India a global manufacturing hub for telecom and networking products.

The PLI scheme will be implemented in the financial limit of Rs 12,195 crore over five years, of which Rs 1,000 crore will be allocated to the MSME category. Small Industries Development Bank of India (SIDBI) has been appointed as the Project Management Agency (PMA) for the PLI scheme.

“The full utilisation of the scheme funds is likely to lead to production of around Rs 2.4 lakh crore, with exports of Rs 2 lakh crore over five years,” a statement by the ministry of communication said.  The scheme will also bring investment of around Rs 3,000 crore and generate direct and indirect employment.

The scheme will be effective from April 1, 2021. Investment made by successful applicants in India from April 1, 2021, onwards and up to financial year 2024-2025 will be eligible, subject to qualifying incremental annual thresholds, for the scheme. The support under the scheme will be provided from FY 2021-22 to FY 2025-26.

The scheme is open to both MSME and non-MSME companies, including domestic and global companies. “Manufacturers with products using Indian technology are encouraged to apply,”  a ministry of communications statement said.

Also read: Govt to notify PLI scheme for auto components, steel, textile

Applicants can start the registration process for the scheme from June 1, 2021, at pli-telecom.udyamimitra.in. The application window will be open for 30 days i.e. up to 3rd July 2021.

Applicants will have to satisfy the minimum revenue criteria to be eligible under the scheme. The company may decide to invest in single or multiple eligible products. The scheme stipulates a minimum investment threshold of Rs 10 crores for MSME and Rs 100 crores for non-MSME applicants. Land and building costs will not be counted as investment. The eligibility will be subject to incremental sales of manufactured goods (covered under scheme target segments) over the base year (FY 2019-20).

Also read: PLI Scheme: 46 firms get nod for domestic manufacturing of APIs, drug intermediates

The DoT will approve 10 eligible applications each in MSME & non-MSME categories. Out of the 10 applications in non-MSME category, at least 3 (three) applicants will be domestic companies. The applications will be short-listed from highest to lowest on the basis of committed cumulative incremental investment during the scheme period.

Also read: Govt clears Rs 18,100-cr PLI scheme for battery manufacturing

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