The Ministry of Communications (“Ministry”) has issued a Press Release to announce the approval of the Production Linked Incentive Scheme (“Scheme”) for Telecom and Networking Products in connection to mobile and component manufacturing under the initiative of Atmanirbhar Bharat.
The Ministry has further informed that another component of Atmanirbhar Bharat has been addressed by the Cabinet to make India a global hub of manufacturing telecom equipment including core transmission equipment, 4G/5G Next Generation Radio Access Network and Wireless Equipment, Access & Customer Premises Equipment (“CPE”), Internet of Things (“IoT”) Access Devices, Other Wireless Equipment and Enterprise equipment like Switches, Routers etc.
The salient features of the Scheme have been detailed below-
• The scheme outlay is Rs. 12,195 Crores over five years;
• Minimum Investment threshold for MSME has been kept at Rs. 10 Crores and for others at Rs. 100 Crores;
• The investor once qualified will be incentivized up to 20 times of minimum investment threshold, thereby, enabling them to utilize their unused capacity;
• This scheme also addresses local manufacturing in MSME category because Government desires MSMEs to play an important role in the telecom sector and come out as national champions;
• This scheme will lead to incremental production of around ₹2.4 Lakh Crores with exports of around ₹2 Lakh Crores over 5 years.
The Scheme will gain effect from 1st April 2021.
Source : Press Information Bureau
