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The Telecom Regulatory Authority of India (TRAI) has proposed a 'concurrent PLI scheme' aimed at promoting manufacturing of networking and telecom gear in India. The recommendations include tax benefits, a dedicated master fund, and incentives for design-led PLI schemes. TRAI also suggests lower corporate income tax for companies engaged in R&D manufacturing and with a significant turnover from owned intellectual property rights.

In the list of recommendations on ‘Promoting Networking and Telecom Equipment Manufacturing in India released by the sector regulator on Saturday, it has also suggested the introduction of local value addition norms in performance linked incentives scheme (PLI scheme), tax relief as part of fiscal incentives, and setting up a dedicated master fund towards to address the relative cost disability faced by the industry, among others.

With a sharp gaze on goals of scaling domestic production and local value addition in global value chains, TRAI in its recommendations favoured additional two per cent benefit under the design-led PLI scheme for product lines meeting a certain criteria, while also talking of a dedicated 'Networking and Telecommunications Equipment Development' fund.

Telecom Regulatory Authority Of India: “It has been recommended that Government should follow a nudge approach and Telecom Service Providers (TSPs) should be incentivised to deploy indigenously manufactured equipment by reducing their Applicable Gross Revenues on annual net basis, by an amount equivalent to the aggregate certified value of indigenous NATE deployed in respective telecom networks during a financial year,” Trai said.