The authorities on Wednesday authorised a Rs. 12,195 crore production-linked incentive (PLI) scheme for telecom gear manufacturing in India, a transfer that can place the nation as a worldwide powerhouse for manufacturing of such tools forward of 5G roll-outs.
The PLI scheme for telecom gear manufacturing, will likely be operational from April 1, 2021.
It will result in incremental manufacturing of round Rs 2.four lakh crores with exports of round Rs. 2 lakh crores over 5 years. The scheme is predicted to convey funding of over Rs 3,000 crore and generate big direct and oblique employment and taxes each, an official launch stated.
Briefing reporters after a gathering of the Cabinet, Communications Minister Ravi Shankar Prasad stated that the federal government is positioning India as a worldwide powerhouse for manufacturing, and has created a conducive atmosphere for ease of doing enterprise.
“Cabinet has approved PLI for telecom sector…to ensure further progress of Make-in-India in telecom equipment space…5G equipment will also come…so it was important to give incentives. We held widespread consultation with stakeholders,” Prasad stated including that the scheme additionally goals to advertise MSMEs in “Aatmanirbhar Bharat”.
The scheme is expected to offset huge imports of telecom equipment worth more than Rs 50,000 crores and reinforce it with “Made in India” products both for domestic markets and exports, the release said.
The new scheme has an outlay of Rs. 12,195 crores over five years, and its eligibility will be subject to achievement of a minimum threshold of cumulative incremental investment and incremental sales of manufactured goods.
The incentive structure ranges between 4 and 7 per cent for different categories and years. Financial Year 2019-20 will be treated as the base year for computation of cumulative incremental sales of manufactured goods net of taxes, the release added.
Minimum investment threshold for MSMEs has been kept at Rs. 10 crores and for others at Rs. 100 crores.
“Once certified, the investor will likely be incentivised as much as 20 occasions of minimal funding threshold enabling them to utilise their unused capability,” the release said.
Prasad said that government will soon come up with PLI scheme to encourage production of laptops and tablet PCs.
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