DoT Announces PLI Scheme Guidelines, Opens Registration for Telecom Equipment

Late on Thursday, the telecom department (DoT) announced the much-awaited PLI Scheme Guidelines for the same in Telecom Infrastructure. The DoT announced the scheme guidelines after "extensive consultations with stakeholders".

DoT Announces Guidelines for PLI Scheme in Telecom Infra

The telecom department said, "the scheme envisages to create global champions out of India who have the potential to grow in size and scale using cutting edge technology and thereby penetrate the global value chains".

First, everything that everyone knew.

• The financial limits remain the same at ₹12,195 Crores for implementation of the Scheme over a period of 5 years.
• However, DoT has allocated a separate ₹1000 Crores for MSME category.

The department has appointed Small Industries Development Bank of India (SIDBI) as the Project Management Agency (PMA) for the PLI scheme.

In the statement, the department said that it will approve a total 20 applications for the time being, 10 each in MSME and non-MSME categories. Further, it said that out of those 20, at least 6 will be local gear makers. The department will shortlist companies in a descending order, depending on the total incremental investment during the said period.

The PLI Scheme Guidelines

1. One, as was reported earlier, the DoT will consider the investment and production of the gear makers from 1st April, 2021. The department will consider the investment and production of selected companies till FY 24-25 as eligible. This will depend on qualifying incremental annual thresholds.
2. Two, the department will provide support to the selected applicants for 5 years. That is, from FY 21-22 to FY 25-26.
3. Three, the Scheme is open to both MSME and Non-MSME companies. These companies include both local and international companies. The DoT is also encouraging gear makers who are using Indian tech in their products.
4. Four, all eligible applicants can now start their registration from 4th June onwards at https://www.pli-telecom.udyamimitra.in, till 3rd July.
5. Five, all the applicants have to satisfy the minimum revenue criteria to stand a chance at selection.
6. Six, the companies have the option to invest in either one or many products, depending on their requirements.
7. Seven, the scheme stipulates a minimum investment threshold of ₹10 Crores for MSME and ₹100 Crores for non MSME applicants. However, DoT will not could land and building costs as investment.
8. Eight, an applicant's eligibility still depends on Incremental Sales of Manufactured Goods (covered under Scheme Target Segments) over the base year (FY 2019-20).

The government is estimating a production of around ₹2.4 Lakh Crores if the scheme funds are fully used up. Additionally, the government believes that it will generate "huge direct and indirect employment", while also bring in investment of almost ₹ 3,000 crore.