Telecom Mfgr. to receive Rs.12,195 cr. outlay over next five years
20 February 2021: Scheme to reverse import of telecom equipment worth more than Rs.50,000 crores. Globally Telecom and Networking Products exports represent an US$100 billion market opportunity, which can be exploited by India. So, given this opportunity, the Union Cabinet, chaired by the Prime Minister, Narendra Modi has approved Production Linked Incentive (PLI) Scheme for Telecom and Networking Products with a budgetary outlay of Rs.12,195 crore. The Scheme will be operational from 1st April 2021.
As per an official announcement by the Ministry of Communications, this scheme will lead to incremental production of around Rs.2.4 Lakh Crores with exports of around Rs.2 Lakh Crores over 5 years. The scheme will bring more than Rs. 3,000 crore investment and generate huge direct and indirect employments. With this scheme, India will be well positioned as a global hub for manufacturing of Telecom and Networking Products and offset the huge import of telecom equipment worth more than Rs. 50 thousand crores.
The scheme will make India a global hub of manufacturing telecom equipment including core transmission equipment, 4G/5G Next Generation Radio Access Network and Wireless Equipment, Access & Customer Premises Equipment (CPE), Internet of Things (IoT) Access Devices, Other Wireless Equipment and Enterprise equipment like Switches, Routers etc.
There will be a minimum investment threshold of Rs.10 crore for MSME with incentives from 7% to 4 % and Rs. 100 crore for others with incentives from 6% to 4 % over 5 year above Base Year. The applicants with higher investments than specified threshold under MSME and Non MSME categories will be selected through transparent process.
It may be noted that the PLI Scheme intends to promote manufacture of Telecom and Networking Products in India and proposes a financial incentive to boost domestic manufacturing and attract investments in the target segments of telecom and networking products in order to encourage Make in India. Support under the Scheme will be provided to companies/entities engaged in manufacturing of specified telecom and networking products in India.
The Cabinet approval comes in wake of very encouraging success of PLI related to Mobile and component manufacturing, which was announced in April 2020 during the height of Covid pandemic. In spite of 31st July 2020 being the last date for applying, it received a resounding response. All major mobile component manufacturers of world are expanding their powerful footprints in India by making investments, starting exports and giving jobs to thousands of Indians.