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22 MSMEs apply for telecom PLI scheme: Govt

Ease of Doing Business for MSMEs: Out of 32 companies, the ministry said 17 had applied as design-led manufacturers while the remaining had applied as production-linked manufacturers.

Ease of Doing Business for MSMEs: The Department of Telecommunications (DoT) Friday said 32 companies have submitted applications for the design-led production-linked incentive (PLI) scheme that promotes telecom and networking products’ manufacturing in India. Out of 32 companies, 22 were micro, small and medium enterprises (MSMEs), five were domestic non-MSMEs, and the remaining five were global enterprises, according to a statement by the communications ministry.

The DoT had notified the scheme in February last year with a financial outlay of Rs 12,195 crores. A total of 31 companies, comprising of 16 MSMEs and 15 Non-MSMEs including 8 domestic and 7 global companies were given approval in October. However, in the backdrop of building a strong 5G ecosystem in the country, the budget this year had proposed to make design an intrinsic part of the scheme, and consequently, the scheme was amended in June this year to make manufacturing design-led with additional incentive rates.

The scheme offers an additional incentive of 1 per cent over and above the existing incentives for products that are designed in India. The application window was open from June 21 till August 25, 2022, the ministry said in a statement

Out of 32 companies, the ministry said 17 had applied as design-led manufacturers while the remaining had applied as production-linked manufacturers. “India is poised to emerge as design and manufacturing hub for telecom and networking equipment.” 

Meanwhile, the DoT had also extended the scheme by one year. The existing beneficiaries can choose between FY22 or FY 23 as the first year of incentive under the scheme. Beneficiaries can avail of the incentives for five years commencing April 1, 2022.

Applications invited from design-led manufacturers by the government were prioritized. The scheme stipulated Rs 10 crore in minimum investment threshold for MSMEs and Rs 100 crore for non-MSMEs. Moreover, the eligibility was also subject to incremental sales of manufactured goods covered under the scheme’s target segments over the base year of FY20.