October 15 2021: The Indian government has launched the Production Linked Incentive (PLI) Scheme for Telecom and Networking Products with approvals for 31 companies totalling an investment of around Rs 3345 crores ( Rs33.45 billion)
The PLI Scheme is being launched by Department of Telecommunication 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 scheme is effective from April 1 , 2021. Investment made by successful applicants in India from April 1, 2021 onwards and up to FY 2024-25 are 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 and 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.
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. ( List of all companies approved, in the govt release here)
Comments Rakesh Warrier, Partner, J Sagar Associates (JSA): Thirty one approvals in one go clearly indicates the interest and readiness of several companies to avail the benefits of the PLI Scheme. We are looking at long term benefits here, not just in terms of domestic manufacturing but for the entire telecom sector as such. In addition to generating significant investments and associated benefits (such as employment), this step of the regulator will also be an impetus for other applicants to come forward with similar proposals.