Indian Government received 2725 crore investments under PLI scheme

The government has received Rs 2725 crore investments under PLI scheme till end october 2023 out of the total Rs 4014 crore committed by 42 applicants for telecom gear manufacturing. Further, products worth Rs 8804 crore had been exported till date under the PLI scheme for telecom gear and over 15,500 new jobs had been created till end October. 

Analysing the progress level of the telecom gear PLI scheme , it has been estimated that Rs 2,37,807 crore increamental sales committed by applicants , as much as Rs 38,999 crore had already been realised till end October 2023. The scheme has significantly generated approximately 15,561 fresh jobs out of the targeted 44,494 .

Read Also : IndusInd Bank Q1 FY25 results, net profit at 2% YoY

The Department of Telecommunications had originally notified the PLI scheme for telecom and networking products two years ago with an outlay of Rs 12,195 crore. Subsequently, it was amended in April 2022 to facilitate design led manufacturing with an additional incentive rate of 1 percent over and above existing incentives rates. Some Rs 4,000 crore from the Rs 12,195 crore had been set aside for this.

Under the revised PLI scheme for telecom gear, 42 companies were selected , including 28 micro , small,and medium enterprises. The scheme offers incentives in the range of 4 percent to 7 percent for different categories and years. For MSME's a 1 percent higher incentive is proposed in the first three years. Telecom products manufactured locally under the PLI scheme are exported to many countries. 

Read Also : RBI issues guidelines on higher liquidity coverage ratio for retail deposits

The PLI scheme was launched in June, 2021 with the objective to boost domestic manufacturing, investments and export in the telecom and networking products. It has been implemented within the overall financial limits of Rs 12,195 crore over the period of 5 years. To boost local manufacturing of telecom equipment, the government had reportedly tightened rules on custom duty payments by gear importers in a bid to plug leakages. This has lent a fillip to local manufacturing of routers, modems, set top boxes amongst others.

The Center has also allowed companies to claim benefits for making 5G fixed wireless access [FWA] equipment. Top telcos such as Reliance Jio and Bharat Airtel are betting big on FWA to monetise 5G.

Read Also : India assumes the Chair of Asian Disaster Preparedness Centre