The Union Cabinet, chaired by 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.
PLI Scheme intends to promote manufacturing of telecom and networking Products in India and proposes a financial incentive to boost domestic manufacturing and attract investments in the target segments of these products to encourage Make in India. The scheme will also encourage exports of telecom and networking products.
Globally telecom and networking products exports represent an $100 billion market opportunity, which can be exploited by 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 (as distinct from traded goods) over the Base Year 2019-2020.
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 is expected that scheme will bring more than Rs. 3,000 crore investment and generate huge direct and indirect employments. Incremental production around Rs. 2 Lakh crore is expected to be achieved over 5 years.