23-02-2021 | 13:30 PM
Cabinet approved PLI scheme for Telecom Sector
Context
The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi, has approved Production Linked Incentive (PLI) Scheme for Telecom and Networking Products with a budgetary outlay of Rs. 12,195 crores.
Key Highlights
PLI scheme was launched in March 2020 in a bid to boost domestic manufacturing. It also seeks to cut down on import bills.
The Production Linked Incentive (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.
This scheme does not stop any foreign companies to set shop in Indi but, it also encourages the local companies to set up or expand the existing manufacturing units.
The scheme will also encourage exports of telecom and networking products 'Made in India'.
Under the Scheme support will be provided to companies/entities engaged in manufacturing of specified telecom and networking products in India.
Eligibility will be further subject to achievement of a minimum threshold of cumulative incremental investment over a period of four years and incremental sales of manufactured goods net of taxes over the Base Year 2019-2020.
Production Linked Incentive (PLI) scheme on telecom sector will be effective from April 1, 2021.
The government aims to make India a hub of 4G/5G Next Generation Radio Access Network along with core transmission equipment, and Wireless Equipment.
This move will also boost the local manufacturing of telecom gear in the domestic market as well as for exports.
PLI scheme will cater to the core transmission equipment, 4G/5G and next-generation radio access network & wireless equipment, Internet of Things (IoT) access devices, access and customer premise equipment (CPE) and enterprise equipment like switches and router.
It will also pull the Intellectual Property (IP) and design-led manufacturing in order to make the Indian industry globally competitive.
The policy also seeks to boost the research and development pool and talent across India.
