Telecom PLI sees INR 3,998 crore worth actual investment: Centre
Published on Dec 11, 2024
By IANS

- NEW DELHI — The
production-linked incentive (PLI) scheme for telecom and networking products
has witnessed INR 3,998 crore worth actual investment (against INR 4,014 crore
as committed investment) by micro, small and medium enterprises (MSMEs) and
non-MSMEs, the Parliament was informed on Wednesday.
- Minister of State for Communications and Rural Development,
Dr Chandra Sekhar Pemmasani, said in a written reply to a question in Lok Sabha
that total 42 beneficiaries have been approved under the PLI scheme for telecom
and networking products (till October 31).
- In order to promote manufacturing of telecom products and
reduce import dependency, the Department of Telecommunications (DoT) notified
the PLI for telecom and networking products in 2021 with a total financial
outlay of INR 12,195 crore.
- The scheme guidelines were amended in June, 2022 offering 1
per cent additional incentive for products designed, developed and manufactured
in the country.
- Earlier, the government informed that under the PLI scheme
for telecom and networking products, exports reached INR 12,384 crore (till
September 30).
- Till September, the applicant companies had clocked total
sales worth INR 65,320 crore, according to Pemmasani.
- Salient features of the scheme are 33 telecom and networking
products, incentives ranging from 4 to 7 per cent, an additional 1 per cent
incentive for MSMEs for the first 3 years, and an additional 1 per cent
incentive for products ‘Designed in India’.
- Meanwhile, the PLI scheme for Large Scale Electronics
Manufacturing was notified in 2020 to provide incentives to eligible companies
on incremental sales (over the base year) involved in mobile phone
manufacturing and manufacturing of specified electronic components, including
Assembly, Testing, Marking and Packaging (ATMP) units.
- By encouraging local production, the PLI scheme has
significantly reduced the country’s reliance on imported telecom equipment.
According to the government, the Indian manufacturers are increasingly
competing on a global scale, offering high-quality products at competitive
prices.