In the world, India is the 2nd largest telecom market with 765 million broadband subscribers. It provides employment to 4 million people in India and contributes 7% of all FDI inflow in the country.
So, to attract large-scale investment in telecom equipment manufacturing and increase the domestic production capacity, the Government of India has introduced the PLI Scheme for Telecom and Networking products.
PLI Scheme full form is Production Linked Incentive Scheme. And, it is estimated that by utilizing the full Scheme funds will increase the production in the country. The production cost around Rs. 2.4 lakh crore with export of around Rs. 2 lakh crores over 5 years. This scheme is in line with the Make in India objective.
But, to take the PLI incentives of the scheme, the businesses included in the telecom and networking must check the eligibility and process to take the benefit of the PLI scheme. Complete PLI scheme details with timeline mentioned below.
The benefit will only provide to the companies for manufacturing of goods in India, which fall under the Scheme Target Segments. Also any foreign investment in the applicant company must be in compliance with FDI Policy 2020. The eligibility is as follows:
Companies registered as Micro, Small & Medium Enterprises (MSME) with the Ministry of MSME, Government of India.
The Non MSMEs are those companies which are not falling under the MSME category. The Non MSMEs category is further divided in two categories:
Domestic Company: According to the scheme guidelines, a company owned and controlled by an Indian citizen or Indian company known as a “Domestic Company”. The 50% of the capital must be contribute by a resident Indian citizen or company.
Global Company: The global company is the one which does not fall under the category of domestic company. So, if business is set up in one or more countries either by itself or including its Group Companies as defined in the Scheme guidelines.
Note: Access the application format on the Production Linked Incentive Scheme portal. The format available on the website is only to get the understanding of the information required to submit online.
Note: Overall time taken by PMA for initial scrutiny of claim application (S.No.1) and recommendation (S.No.3) should be undertaken within the overall timeline of 22 days.
The scheme's objective is to boost domestic manufacturing, investments in, and exports of telecom and networking products. For that, DoT (Department of Telecommunications) has issued a notification about the production linked incentive scheme. Businesses must follow the set DoT compliances for the schemes. To get started with the scheme, fulfill the PLI scheme details shared above.