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What is the News?
The Minister of State for Communications has launched the Production Linked Incentive (PLI) Scheme for Telecom and Networking Products.
What is the objective of the PLI Scheme for Telecom and Networking Products?
To boost domestic manufacturing in the telecom and networking products by incentivising incremental investments and turnover.
To reduce India’s dependence on other countries for the import of telecom and networking products.
What are the target segments under the scheme?
Core Transmission Equipment
4G/5G, Next-Generation Radio Access Network and Wireless Equipment
Access and Customer Premises Equipment (CPE), Internet of Things (IoT) Access Devices, and Other Wireless Equipment
Enterprise equipment: Switches, Routers
What is the eligibility criteria?
MSMEs – Minimum Threshold of Investment ₹ 10 Crores
Other than MSMEs – Minimum Threshold of Investment ₹ 100 Crores
Further, for MSMEs, the scheme has a 1% higher incentive in the first three years.
What are the incentives under the scheme?
An incentive of 7% to 4% on incremental sales (over base year) of goods manufactured in India
Tenure: Support under the scheme shall be provided for a period of five (5) years from 1st April 2021.
| Read more: Production-Linked Incentive or PLI Schemes and its challenges – Explained, pointwise |
Source: This post is based on the article “Production Linked Incentive (PLI) Scheme for Promoting Telecom and Networking Products Manufacturing in India” published in PIB on 16th October 2021.
