Cabinet approves PLI scheme for telecom sector
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Union Telecom Minister Ravi Shankar Prasad. File
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The Union Cabinet on Wednesday approved the production-linked incentive scheme for the telecom sector with an outlay of ₹12,195 crore over five years.
The scheme, which aims to make India a global hub for manufacturing telecom equipment, is expected to lead to an incremental production of about ₹2.4 lakh crore, with exports of about ₹2 lakh crore over five years and bring in investments of more than ₹3,000 crore.
“The implementation of PLI scheme in telecom manufacturing will start from April 1, 2021,” said Communications Minister Ravi Shankar Prasad. “Many international players are keen to come to India. We will encourage them and also domestic manufacturers,” he added.
Shares of eight telecom equipment makers jumped by 2% to 17% after the Union Cabinet on 17 February 2020 extended the Production Linked Incentive (PLI) scheme for telecom and networking products.D-Link (India) (up 17.34%), ITI (up 10.3%), HFCL (up 10.2%), Tejas Networks (up 10%), Smartlink Holdings (up 9.55%), Optiemus Infracom (up 4.97%), Indus Towers (up 3.99%) and Avantel (up 2.09%) advanced.
The approval comes in wake of PLI related to Mobile and component manufacturing, which was announced in April 2020 during the height of Covid pandemic.
The scheme outlay is Rs 12,195 crore over five years. The eligibility for the scheme will be subject to achievement of a minimum threshold of cumulative incremental investment and incremental sales of manufactured goods net of taxes. Financial Year 2019-20 will be treated as the base year for computation of cumulative incremental sales of manufactured goods net of taxes. The scheme will be operational from 1 April 2021.
In line with the government s vision to make India a manufacturing hub, the Union Cabinet on Wednesday approved the Production Linked Incentive (PLI) Scheme for telecom and networking products at a budgetary outlay of Rs 12,195 crore.The .
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Input duty reimbursement for exporters of garments and made-ups under the new RoDTEP scheme may be lower than the rates under the previous RoSCTL scheme if the government finds it difficult to meet the needs of all other entitled sectors with the available resources, officials said.
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The government will also come up with a PLI scheme to encourage production of laptops and tablets.
Shares of telecom equipment makers such as Sterlite Technologies, Vindhya Telelinks, D-Link, HFCL, ITI, Indus Towers, Shyam Telecom and Tejas Networks rose in the range of 2-11 per cent after the Union Cabinet approved Production Linked Incentive (PLI) scheme for telecom equipment makers. The Union Cabinet headed by Prime Minister Narendra Modi approved Rs 12,195 crore production linked incentive (PLI) scheme for the telecom and networking products in order to boost India s manufacturing capabilities and enhance exports. The scheme is aimed at offsetting the huge import of telecom equipment worth more than Rs 50,000 crore and reinforce it with Made in India products both for domestic markets and exports, Telecom Minister Ravi Shankar Prasad said in a media briefing after a cabinet meeting. The scheme outlay is for a period of five years.