DoT introduces design-linked incentive scheme, extends telecom PLI by 1 yr

Applications are invited from June 21 for incentive of more than Rs 4,000 cr

The Department of Telecom has launched an incentive scheme for design-led manufacturers and extended the duration of the Rs 12,195 crore production-linked incentive (PLI) scheme by a year, an official statement said on Monday.

The incentive for design-led manufacturing is part of the PLI scheme which was notified on February 24, 2021.

"With the objective to build a strong ecosystem for 5G, the Union Budget 2022-23 has proposed to launch a scheme for design-led manufacturing as part of the existing PLI scheme.

"After consultations with stakeholders, the guidelines for the PLI Scheme for telecom and networking products have been amended to introduce the Design-led Manufacturing with additional incentive rates," the statement said.

The application window will open from June 21 till July 20. The incentives will be given from the Rs 4,000 crore which is left from the total outlay.

"Further, DoT based on feedbacks from stakeholders including the selected PLI applicants, has decided to extend the existing PLI Scheme by one year. The existing PLI beneficiaries will be given an option to choose financial year 2021-22 or financial year 2022-23 as the first year of incentive.

"DoT has also approved addition of 11 new telecom and networking products to the existing list, based on suggestions from the stakeholders," the statement added.

The Department of Telecom (DoT) had notified the PLI scheme on February 24 last year, for which a total of 31 companies, including Nokia, Foxconn, Akashastha Technologies, ITI and HFCL Group, were given approval on October 14. The approved companies have committed to make total investments of Rs 3,345 crore by 2025-26.

The companies interested in the incentive scheme will have to satisfy the minimum global revenue criteria to be eligible. The company may decide to invest for single or multiple eligible products.

The scheme stipulates a minimum investment threshold of Rs 10 crore for MSMEs and Rs 100 crore for non-MSME applicants.

Land and building cost will not be counted as investment under the scheme. The allocation for MSME has been enhanced from Rs 1,000 crore to Rs 2,500 crore.