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In a bid to build a strong ecosystem for 5G in the country, the government extended the production linked incentive PLI scheme for design-led manufacturing by one year.
Amendments made to the Guidelines for PLI Scheme
- Department of Telecommunication has amended the scheme to raise the incentive rate by additional 1 percent
- Policy has also amended to expands scope to cover design-led manufacturing to build a strong 5G ecosystem
- The amendment comes days after the country took its first step towards 5G rollout as the Union Cabinet cleared a proposal to invite applications for spectrum auctions.
What are the incentives under the Amended telecom PLI ?
- The Center will provide additional incentives of over Rs 4,000 crore under the amended scheme.
- Coverage
- The scheme is open to both MSME and non-MSME companies, including domestic and global companies.
- The scheme requires an investment threshold of Rs 10 crores for MSMEs and Rs 100 crores for non-MSMEs, excluding land and building cost.
- The incentives will be based on incremental sales of the manufactured goods, and range between 4 per cent to 7 per cent for different categories over the years.
- MSMEs will get an additional 1 per cent incentive in the first, second, and third years.
- The DoT has also approved 11 new telecom and network products to the existing list of products that manufactured under the scheme.
- Special Consideration for Design led manufacturers
- The applications from design-led manufacturers shall be prioritised over other manufacturers while shortlisting.
- Design led manufacturing is primarily aimed to support efforts for designing telecom products in India.
- It will recognise and encourage R&D-driven manufacturing in the country to enhance its contribution to the global value chain as envisaged in the National Digital Communication Policy, 2018
Production-Linked Incentive(PLI) Scheme
- The Government of India launched the Production-Linked Incentive(PLI) in March 2020.
- Goal:
- To make Indian manufacturing globally competitive by eliminating sectoral barriers, establishing economies of scale, and ensuring efficiencies.
- Companies given incentives based on incremental sales from products manufactured in India above the base year under the scheme.
- Implementation:
- Relevant ministries and departments implement the Scheme
- The PLI scheme operates in the line of Atmanirbhar Bharat.
- Some of the earlier PLI schemes include Mobile Manufacturing and Specified Electronic Components , Critical Drug Intermediaries, Active Pharmaceutical Ingredients etc which was later expanded to others which include PLI Scheme for White Goods (ACs and LED Lights).
Pic Courtesy: Indian Express
Content Source: Indian Express