The Ministry of Communications has disbursed ₹331.86 crore in incentives under the Production Linked Incentive (PLI) scheme for telecom and networking equipment. These incentives were distributed among 18 companies, including Tejas Networks, Jabil Circuit India, and Dixon Electro Appliances. Minister of State for Communications, Pemmasani Chandra Sekhar, shared this information in response to a Lok Sabha query.
Overview of the PLI Scheme
Launched in 2021, the five-year PLI scheme has a total budget of ₹12,195 crore. To qualify for incentives, companies must meet a minimum threshold for cumulative incremental investments over four years: ₹10 crore for micro, small, and medium enterprises (MSMEs) and ₹100 crore for other companies. Additionally, incremental sales of manufactured goods are factored into eligibility.
So far, 42 companies have been approved as participants in the scheme. These companies have collectively achieved cumulative sales of ₹68,708 crore and exports worth ₹13,007 crore as of October 2024.
PLI scheme is driving the ‘Make in India’ program in Telecom.
— DoT India (@DoT_India) December 17, 2024
Jobs: 25,359
Investment: Rs 3,998 cr
Total Revenue: Rs 68,790 cr
Exports: Rs 13,007 cr pic.twitter.com/ERvAJ1v97L
Incentives Structure
Under the scheme, the government provides financial support based on eligible sales over a base year:
- For MSMEs: 7% for the first two years, 6% in year three, 5% in year four, and 4% in year five.
- For other companies: 6% for the first two years, 5% in years three and four, and 4% in year five.
In 2022, the scheme was amended to include an additional 1% incentive for products that are designed, developed, and manufactured in India.
Investment Commitments
As of October 31, 2024, companies have committed ₹4,014 crore in investments under the PLI scheme, with ₹3,998 crore already invested. This includes ₹369 crore from MSMEs and ₹3,998 crore from larger companies.
Importance of the Initiative
India is making significant efforts to boost indigenous telecom equipment manufacturing and reduce reliance on imports, particularly from certain countries. In 2022, the Department of Telecommunications (DoT) mandated telecom service providers to use only equipment marked as “Trusted Products” for network expansion. This mark has not been granted to Chinese manufacturers Huawei and ZTE.
The implementation of the PLI scheme highlights the government’s commitment to fostering domestic production and enhancing self-reliance in telecom infrastructure, offering a clearer perspective on the progress of India’s indigenous equipment manufacturing efforts.
