New Delhi [India], June 4 (ANI): The Telecommunications Bureau (DoT) released operational guidelines for the Production Link Incentive (PLI) scheme for telecommunications and network equipment on Thursday.
The scheme envisions using cutting-edge technology to scale and scale to create global champions from India that have the potential to penetrate the global value chain. Telecom products play a key role in the larger vision of “Digital India.”
The PLI scheme will be implemented within a total financial limit of Rs 12,195 thousand over a five-year period. For the MSME category, the assignment is Rs 1000 crores.
The Bank of Small Industrial Development (SIDBI) of India has been designated as the Project Management Authority (PMA) for the PLI scheme.
This system will come into effect on April 1, 2021.
Successful applicants’ investments in India from April 1, 2021 to 2024 to 2025 will be eligible under this scheme, subject to eligibility for an eligible annual threshold.
Support under this scheme shall be provided for five years from 2021-22 to 2025-26.
According to the official release, Shem is open to both micro and SMEs and non-micro businesses, including domestic and global businesses. We also recommend that manufacturers who manufacture products made with Indian technology also apply.
It is estimated that full utilization of scheme funds is likely to lead to additional production of around Rs. 240,000 and exports of around Rs. 200,000 in five years.
The scheme is also expected to generate approximately Rs. 300 billion in investment and create large amounts of direct and indirect jobs. This is in line with the larger purpose of “Make in India”, and for the release, qualified applicants interested can start the scheme registration process from June 4th, July 3rd. It is stated that the application window will open for 30 days until the date.
Applicants must meet minimum revenue standards to qualify under this scheme.
The company may decide to invest in one or more eligible products. The scheme stipulates a minimum investment of Rs 1 billion for micro-enterprise applicants and Rs 10 billion for non-micro-enterprise applicants. Land and building costs are not counted as an investment. Eligibility is also subject to incremental sales of manufactured goods (covered by scheme target segments) in the base year (2019-2020).
The Telecommunications Bureau shall approve 10 eligible applications in each of the MSME and non-MSME categories.
Of the 10 applications in the non-MSME sector, at least 3 applicants are eligible domestic companies. According to the release, applications will be listed from highest to lowest based on the committed cumulative incremental investment during the scheme period. (Ani)
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