PLI Scheme For Telecom Spurs Rs 65,320 Crore In Sales; Boosts Exports To Rs 12,384 Crore

The production-linked incentive (PLI) scheme for telecom and networking products has attracted 42 applicants, including 28 MSMEs, with a total investment of Rs 3,925 crore and exports amounting to Rs 12,384 crore as of 30 September, the government informed Parliament on Wednesday.

Launched in June 2021 with a financial outlay of Rs 12,195 crore, the scheme has however enabled applicant companies to achieve total sales of Rs 65,320 crore by September, Minister of State for Communications Dr. Chandra Sekhar Pemmasani stated in a written reply to the Lok Sabha.

The scheme incentivizes the production of 33 telecom and networking products, offering incentives ranging from 4% to 7%.

Additionally, MSMEs are eligible for an extra 1% incentive for the first three years, and products designed in India receive a similar bonus incentive.

The government however launched the Telecom Technology Development Fund (TTDF) to support local manufacturing in 2022 to foster R&D for telecom services in rural and remote areas.

Launched in 2021, the Digital Communications Innovation Square (DCIS) scheme supports innovative projects by bridging the gap between lab concepts and field deployment.

The PLI scheme is part of broader initiatives to boost electronics manufacturing. Other schemes include:

• PLI for Large Scale Electronics Manufacturing (2020): Incentives on incremental sales for mobile phones and specific components.
• SPECS Scheme (2020): 25% financial incentive on capital expenditure for manufacturing electronic components and semiconductors.
• Modified EMC 2.0 Scheme (2020): Infrastructure support for creating world-class electronics manufacturing clusters.

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