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Thursday, April 22, 2021

Telecom PLI norms: For incentives, up to 20 times incremental sales value to be considered

The Department of Telecommunications has released a list of products it will consider eligible for production under the scheme.

By: ENS Economic Bureau | New Delhi |
Updated: February 26, 2021 5:18:58 am
For giving out the incentives under the scheme, the government will consider up to 20 times the value of incremental sales, while the incentives will be in the range of 4 to 7 per cent.

The Department of Telecommunications (DoT) on Thursday notified the norms for the production-linked incentive (PLI) scheme for the manufacturing of core and peripheral telecom equipment such as switches, routers, radio access network, wireless equipment and other internet of things (IoT) access devices. The Rs 12,195 crore PLI scheme had been cleared by the Union Cabinet on February 18.

As per the norms, the new scheme to be effective from April 1 this year, shall consider only those companies eligible who achieve a minimum threshold of cumulative incremental investment over a period of four years and incremental sales of manufactured goods net of taxes over the base year.

For giving out the incentives under the scheme, the government will consider up to 20 times the value of incremental sales, while the incentives will be in the range of 4 to 7 per cent.

Eligible Micro, Small and Medium Enterprises (MSMEs) will get an incentive of 7 per cent for the first and the second year, followed by an incentive of 6, 5, and 4 per cent in the third, fourth and fifth year, respectively.

Other companies, which do not fall under the MSME category but are eligible, will receive an incentive of 6 per cent for the first two years, 5 per cent for the next two years and 4 per cent in the fifth and final year. The minimum investment threshold for MSMEs has been kept at Rs 10 crore, while for other companies it has been kept at Rs 100 crore. The DoT has released a list of products it will consider eligible for production under the scheme. These include core transmission equipment like optical transport network, multi-service provisioning platform, multi-protocol label switching and optical line terminals.

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