The Department of Telecommunications (DoT) has extended the production-linked incentive (PLI) scheme for telecom equipment manufacturing by a year. In addition, the DoT has also amended the scheme to facilitate design-led manufacturing. Going forward, with effect from June 21, 2022, companies can apply for design-led manufacturing, with incentives worth Rs 40 billion.
The extension comes in the background of failure of multiple small and medium firms to submit their investment plans and meet the production targets for the current fiscal year. With the extension, the existing PLI beneficiaries will be given an option to choose financial year 2021-22 or financial year 2022-23 as the first year of incentive. The companies which have met the targets can register for the incentives in 2021-22 while the others have been given a year extension to avail the benefits.
Besides, the design-led manufacturing has been incorporated into the PLI scheme, since the outlay of PLI scheme amounting to Rs 121.95 billion was not utilised fully. To this end, the DoT will give an option to companies selected under telecom PLI to also apply for design-led manufacturing, which gives 1 per cent higher incentive. However, in order to get selected, the companies have to design locally and register the source code in India.
Meanwhile, DoT has also approved addition of 11 new telecom and networking products to the existing list. Notable companies selected under the scheme include Flextronics, Foxconn, Jabil, Nokia, Rising Star, Dixon Technologies, VVDN Technologies, Tejas Networks, HFCL, ITI, Coral Telecom and Lekha Wireless, among others.
Commenting on the initiative, Ashok Gupta, chairman, Optiemus Infracom, said, “We thank Hon’ble Prime Minister and DoT on this bold initiative, this will encourage and benefit the industry tremendously. It’s our view that especially the proactive step to promote design-led manufacturing, can be the gamechanger in strengthening the desired ecosystem for India to become the electronics manufacturing hub.”
