Modi Govt Approves Rs 12,000 Crore PLI Scheme In Telecom Equipment Sector, Eyes Production Worth Rs 2 Lakh Crore

Modi Govt Approves Rs 12,000 Crore PLI Scheme In Telecom Equipment Sector, Eyes Production Worth Rs 2 Lakh CrorePM Modi displaying a Make In India brochure (AFP PHOTO/RAVEENDRAN)

The Union Cabinet chaired by PM Narendra Modi has approved a Production Linked Incentive (PLI) Scheme for Telecom and Networking Products with a budgetary outlay of Rs 12,195 crore, said the Ministry of Communications in a statement.

In order to encourage Make in India, the Production Linked Incentive (PLI) Scheme intends to promote manufacture of Telecom and Networking Products in India and proposes a financial incentive to boost domestic manufacturing and attract investments in the target segments of telecom and networking products.

The scheme encourages export of telecom and networking products which are 'Made in India'.

Support under the Scheme will be provided to companies engaged in manufacturing of specified telecom and networking products in India.

Globally the telecom and networking products represent a USD 100 billion export opportunity which can be exploited by India.

With support under the scheme, India can augment capacities by attracting large investments from global players and at the same time encourage the promising domestic companies to seize the emerging opportunities and emerge as big players in the export market.

There will be a minimum investment threshold of Rs 10 crore for MSMEs with incentives from four to seven per cent and Rs 100 crore for others with incentives from four to six per cent over five year above the Base Year.

With this scheme, an incremental production of around Rs two lakh crores is expected to be achieved over five years. Thus India could improve its competitiveness in manufacturing with increased value addition.