Govt selects 42 companies under telecom PLI scheme

The ministry of communications has granted approval to 42 firms including 28 micro, small and medium enterprises (MSMEs) under the production linked incentive (PLI) scheme for manufacturing of telecom and networking products, in line with the government’s ‘Aatmanirbhar Bharat’ initiative. 

Of these 42 companies, 17 companies have applied for additional incentive of 1% under design-led manufacturing criteria, the ministry says in a statement. In August this year, the government had said that companies which already avail the benefits under PLI scheme for telecom products can apply for the scheme again. However the company needs to exit the existing scheme and apply afresh, if the company wants to revise its investment and net sales to get an additional 1% benefit under the design-led manufacturing. 

The PLI scheme, which was launched by the government in 2021, is for the period of five years. In June this year , the government launched a design-led PLI scheme for the telecommunication sector. Beginning April 1 this year, the government started inviting applications from design-led manufacturers. 

In August this year, the department of telecommunications (DoT) had received applications from 32 companies including 22 MSMEs to avail the PLI scheme. The government had previously said that an amount worth ₹4,000 crore from a total amount of ₹12,195 crore has been set aside to provide incentives for manufacturers. 

“To create a robust domestic value chain, the union budget of FY2022-23 announced a design-led PLI Scheme for telecom and networking products. It provided an additional incentive of 1% over and above the existing incentives for products that are designed and manufactured in India,” the government says. 

The government says that the existing companies under the PLI scheme were allowed to add more products and apply under the design-led PLI scheme. “They were also given the benefit of shifting their 5-year PLI Scheme period by one year. 22 companies availed this opportunity of shifting their first year which includes 13 companies who have applied as fresh applicants,” it added. 

Notably, amongst the major companies, Nokia and Samsung have also been given approval for the PLI scheme for telecom and networking products.