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Investors in Telecom Sector Marking Huge Growth

The scheme for telecom and networking products stipulated a Rs 10 crore minimum investment for MSMEs and Rs 100 crore for non-MSMEs to apply for the same.

Recently, 42 companies including 28 MSMEs have got approval to avail production-linked incentive (PLI) schemes for telecom and networking products.

Till last year October, 31 companies, comprising 16 MSMEs and 15 Non-MSMEs including 8 domestic and 7 global companies were given approval.

The ministry in a statement informed that the existing companies under the scheme for telecom and networking products were allowed to add more products and apply under the design-led scheme. The beneficiaries were also offered the benefit of shifting their 5-year PLI scheme period by one year as they could choose between FY22 or FY23 as the first year of incentive. 22 companies had availed of this offer including 13 enterprises which applied as fresh applicants.

The scheme for telecom and networking products stipulated a Rs 10 crore minimum investment for MSMEs and Rs 100 crore for non-MSMEs to apply for the same. The eligibility was also subject to incremental sales of manufactured goods covered under the scheme’s target segments over the base year of FY20.

Among the beneficiaries under the scheme were Alphion India, Candid Optronix, Coral Telecom, Design and Manufacturing Vista Electronics, Ehoome IOT, Elcom Innovations, Frog Cellsat, GDN Enterprises, GO IP Global Services, GX India, Kaynes International Design & Manufacturing, Samriddhi Automations, Skyquad Electronics and Appliances, Tianyin Worldtech India, Dixon Electro Appliances, Nokia Solutions and Networks India, Neolync Tele Communications, etc., according to the ministry.

PLI Scheme and its Criteria

With the objective to boost domestic manufacturing, investments and export in the telecom and networking products Department of Telecommunications (DoT) notified the “Production Linked Incentive (PLI) Scheme” on 24th February 2021.The PLI Scheme has been implemented within the overall financial limits of Rs. 12,195 Crores only (Rupees Twelve Thousand One Hundred and Ninety-Five Crore only) for implementation of the Scheme over a period of 5 years. For MSME category, financial allocation will be Rs.1000 Crores. Small Industries Development Bank of India (SIDBI) has been appointed as the Project Management Agency (PMA) for the PLI scheme. The scheme has been effective from 1st April, 2021. Investment made by successful applicants in India from 1 st April, 2021 onwards and up to Financial Year (FY) 2024-2025 shall be eligible, subject to qualifying incremental annual thresholds. The support under the Scheme shall be provided for a period of five (5) years, i.e. from FY 2021-22 to FY 2025-26.

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Nitisha Dubey

I am a Journalist with a post graduate degree in Journalism & Mass Communication. I love reading non-fiction books, exploring different destinations and varieties of cuisines. Biographies and historical movies are few favourites.

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