Telecom Production-Linked Incentive Records Actual Investment of Rs 3,998 Crore: Government
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New Delhi, Dec 11 (NationPress) The production-linked incentive (PLI) initiative for telecom and networking products has achieved an actual investment of Rs 3,998 crore (against the committed investment of Rs 4,014 crore) by both micro, small and medium enterprises (MSMEs) and non-MSMEs, as disclosed in Parliament on Wednesday.
The Minister of State for Communications and Rural Development, Dr Chandra Sekhar Pemmasani, provided this information in a written response to a query in the Lok Sabha, stating that 42 beneficiaries have been approved under the PLI scheme for telecom and networking products as of October 31.
To enhance the manufacturing of telecom products and lessen the reliance on imports, the Department of Telecommunications (DoT) introduced the PLI for telecom and networking products in 2021, with a total financial allocation of Rs 12,195 crore.
The scheme's guidelines were revised in June 2022, adding a 1 per cent extra incentive for products that are designed, developed, and manufactured domestically.
Previously, the government reported that exports under the PLI scheme for telecom and networking products reached Rs 12,384 crore until September 30.
As of September, the applicant companies reported total sales amounting to Rs 65,320 crore, according to Pemmasani.
The key features of the scheme include 33 telecom and networking products, incentives ranging from 4 to 7 per cent, an additional 1 per cent incentive for MSMEs for the first three years, and another 1 per cent incentive for products that are ‘Designed in India’.
In addition, the PLI scheme for Large Scale Electronics Manufacturing was announced in 2020 to incentivize eligible companies based on incremental sales (over the base year) related to mobile phone production and the manufacturing of specific electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.
By fostering local production, the PLI scheme has substantially diminished the country's dependence on imported telecom equipment. The government states that Indian manufacturers are increasingly competing globally, providing high-quality products at competitive prices.
