Govt extends PLI Scheme for Telecom and Networking Products to 42 companies

PLI Scheme: The Ministry of Communications granted approval on Monday to 42 companies including 28 MSMEs under Production Linked Incentive Scheme (PLI) for Telecom and Networking Products. These 42 companies have committed to invest an amount of Rs. 4,115 crores to generate additional sales of Rs. 2.45 lakh crores and create additional employment of more than 44,000 over the scheme period.

Out of these companies, 17 companies have already applied for an additional incentive of 1 per cent under design-led manufacturing criteria. Some of the leading companies who have applied for the same include Samsung India, Nokia Solutions and Networks, etc.  

The existing companies under the PLI scheme for telecom and networking products have been permitted to add more products and apply under the design-led PLI scheme. They have also got the permit to shift their 5-year PLI Scheme period by one year. 22 companies so far have availed this opportunity of shifting their first year which includes 13 companies who have applied as fresh applicants.

 In the Union budget of FY2022-23, the government announced design-led PLI Scheme for telecom and networking products. It provided an additional incentive of 1 per cent over and above the existing incentives for products that are designed and manufactured in India.  

Design-led PLI scheme was launched in June this year and applications were invited from design-led manufacturers as well as others, for availing incentives under the PLI Scheme for five years commencing from April 1, 2022.

The PLI Scheme has been implemented within the overall financial limits of Rs 12,195 Crores for implementation of the Scheme over a period of 5 years. For the MSME category, financial allocation is  Rs1000 Crores. The small Industries Development Bank of India (SIDBI) was appointed as the Project Management Agency (PMA) for the PLI scheme. The scheme has been effective from April 1, 2021.