Government launches design-linked incentive scheme, extends telecom PLI by 1 year
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
The Department of Telecom (DoT) on Monday announced an incentive scheme for design-led manufacturing, along with extending the duration of production-linked incentive (PLI) scheme by a year.
Applications are invited from June 21 for design-led manufacturing incentive of more than Rs 4,000 crore.
The DoT also announced an additional incentive rate of 1 per cent over and above the existing rates.
"The existing PLI beneficiaries will be given an option to choose financial year 2021-22 or financial year 2022-23 as the first year of incentive," the Department said in an statement.
DoT also approved addition of 11 new telecom and networking products to the existing list, based on suggestions from the stakeholders.
"For promoting design-led manufacturing, Department of Telecommunications (DoT) is inviting applications from Design-led manufacturers as well as others, for availing incentive under the PLI Scheme for five years commencing from 1st April 2022," it added.
Investment made by successful applicants from April 1 onwards and up to Financial Year (FY) 2025-2026 shall be eligible.
"The applications from Design-led manufacturers shall be prioritised over other manufacturers while shortlisting," said the DoT.
The Design-Led Manufacturing is primarily aimed to support efforts for designing telecom products in India.
The DoT had notified the PLI Scheme on February 24, 2021, with a financial outlay of Rs 12,195 crore.
A total of 31 companies, comprising of 16 MSMEs and 15 Non-MSMEs including 8 domestic and 7 Global companies were given approval on October 14, 2021.
Reacting to the announcement, ICEA Chairman Pankaj Mohindroo said that the decision would not only go a long way in supporting the Indian entrepreneurs but also ensure that India consolidates its position in the global value chain (GVC) of the electronics and mobile phone Industry.
"The industry could not have expected a better time for this announcement as the global supply chain has been impacted by the geopolitical tensions after the severe hit of the pandemic," Mohindroo said in a statement.
