The PLI Scheme, notified on February 24, 2021 by the Department of Telecommunications (DoT), aims to boost domestic manufacturing, investments, and exports of telecom and networking products in India. It is a key initiative under the Atmanirbhar Bharat framework and is implemented over a 5-year period (FY 2021-22 to FY 2026-27) with a total financial outlay of ₹12,195 Crores, including ₹2500 Crores allocated for the MSME category. The scheme encourages companies to manufacture specified telecom and networking products domestically, thereby reducing import dependency and opening up export opportunities.
Target Product Categories
Support under the scheme is provided for the manufacture of products in the following categories:
- Core Transmission Equipment
- 4G/5G, Next Generation RAN, and Wireless Equipment
- Access & CPE, IoT Access Devices, and Other Wireless Equipment
- Enterprise Equipment: Switches and Routers
Benefits
- Incentive Outlay:
- For MSMEs: Financial support is provided based on achieving specific incremental investment and net sales thresholds, with incentives starting at 7% in Year 1 and scaling down in subsequent years.
- For Non-MSME companies: Incentive rates start at 6% in Year 1 and are similarly scaled.
- Additional Incentive:
- An extra 1% incentive is provided for products qualifying under Design-led Manufacturing.
- Funding Flexibility:
- Incentives are disbursed annually, subject to meeting the threshold criteria for investment and net incremental sales, with no carryover for non-eligible years.
Eligibility
- Applicant Requirements:
- Companies must be domestic (registered under the Companies Act, 1956/2013) and focused on telecom and networking product manufacturing.
- Applicants must comply with FDI policies (for foreign investment) and meet the Global Manufacturing Revenue thresholds:
- Global Companies: > Rs. 10,000 Crore
- Domestic Companies: > Rs. 250 Crore
- MSMEs: > Rs. 10 Crore
- Additional Conditions:
- The applicant must meet the minimum cumulative incremental investment and incremental net sales thresholds as defined in the scheme guidelines.
- If an applicant avails incentives under one PLI scheme for the same product, it cannot claim benefits under this scheme.
- The status as MSME or non-MSME is fixed at the time of selection and remains unchanged during the scheme.
Application Process
Mode: Online
- Submission:
- Applicants must submit proposals online via the portal https://usof.gov.in/en/home.
- Screening and Evaluation:
- The proposal undergoes screening, technical evaluation by a Technical Evaluation Committee, administrative review, and final approval by the Competent Authority.
- Implementation:
- Approved proposals are assigned to an Implementation Agency for continuous monitoring and fund disbursement.
- Application Fee:
- A non-refundable fee of Rs. 1 Lakh must be paid via RTGS/NEFT to the designated bank account.
Documents Required
- Organizational registration certificate and annual reports.
- TAN/PAN/CIN of the applicant.
- Applicant team resume and detailed project proposal, including GANTT/PERT charts.
- Detailed technical architecture diagram and presentation of the proposal.
- Declaration document, as per the prescribed format.
Frequently Asked Questions (FAQs)
- Investor Details: Clarification on the lead investor’s role, particularly in consortium settings.
- Expense Eligibility: Questions regarding the eligibility of workspace rentals, equipment cost breakdown, and inclusion of taxes or duties.
- Revenue Definitions: Guidelines on calculating Global Manufacturing Revenue, including conversion methods for foreign currencies.
- Product Categories: Clarifications on adding new product categories post-application.
- Baseline and Incremental Turnover: How baseline investments and net sales are determined for each product.
- Application Specifics: Various queries on document submission, fee payment, and whether proposals are product-specific or company-wide.