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PLI SCHEME FOR TELECOM AND NETWORKING PRODUCTS
The Union Cabinet has approved the PLI Scheme for Telecom and Networking Products.
Important points:
- This scheme is part of the umbrella scheme approved by the cabinet in November 2020 for implementation of Production Linked-Incentives (PLI) under various ministries/departments.
- This is in continuation with the ‘Atmanirbhar Bharat’ strategies for enhancing India’s manufacturing capabilities and exports.
- Support under the Scheme will be provided to companies/entities engaged in the manufacturing of specified telecom and networking products in India.
- Eligibility will be further subject to achievement of a minimum threshold of cumulative incremental investment over a period of four years and incremental sales of manufactured goods net of taxes (as distinct from traded goods) over the Base Year 2019-2020.
- The cumulative investment can be made at one go, subject to annual cumulative threshold as prescribed for four years being met.
- There will be a minimum investment threshold of Rs.10 crore for MSME with incentives from 7% to 4 % and Rs. 100 crore for others with incentives from 6% to 4% over 5 year above Base Year.
Benefits:
- With this scheme, India will be well positioned as a global hub for manufacturing of Telecom and Networking Products.
- Incremental production of around Rs. 2 Lakh crore is expected to be achieved over 5 years.
- India will improve its competitiveness in manufacturing with increased value addition.
- It is expected that the scheme will bring more than Rs. 3,000 crore investment and generate huge direct and indirect employments.
- By incentivizing large scale manufacturing in India, domestic value addition will increase gradually.
- Provision of higher incentive to MSME will encourage domestic telecom manufacturers to become part of the global supply chain.
SOURCE:PIB,THE ECONOMIC TIMES
