The Department of Telecom (DoT) has launched an incentive scheme for design-led manufacturers and extended the duration of the Rs 12,195 crore production-linked incentive (PLI) scheme by a year. The incentive for design-led manufacturing is part of the PLI scheme which was notified on February 24, 2021. The DoT has amended the clause and made the scheme effective from April 1, 2022. With the objective to build a strong ecosystem for 5G, the Union Budget 2022-23 has proposed to launch a scheme for design-led manufacturing as part of the existing PLI scheme.
After consultations with stakeholders, the guidelines for the PLI Scheme for telecom and networking products have been amended to introduce the Design-led Manufacturing with additional incentive rates. Telecom equipment makers who use 50 per cent of Made in India components in their product will be eligible for the design-linked incentive. The new version of telecom PLI heeded to the demand of domestic manufacturers by removing the 15 per cent cap on investment to be made for research and development.
The PLI has provision to provide incentive in the range of 4 to 7 per cent. The design-led manufacturers will get 1 per cent additional incentive over existing slabs under the PLI scheme. The application window will open from June 21 till July 20. The incentives will be given from the Rs 4,000 crore which is left from the total outlay.
