The government unveiled details of the Rs12,195-crore production-linked incentive (PLI) scheme for telecom equipment that’s expected to lead to investment of more than Rs3,000 crore and local production worth Rs2.4 lakh crore, of which exports are pegged at Rs2 lakh crore. The cabinet also approved the signing of a trade deal with Mauritius.
“As a result of the PLI scheme for telecom equipment, government hopes to have incremental production of Rs2,44,200 crore in the sector, exports worth Rs1,95,360 crore, 40,000 new jobs and Rs17,000 crore worth of tax revenue in the coming five years,” communications and IT minister Ravi Shankar Prasad said after the cabinet met Wednesday.
The range of telecom equipment covered under the scheme includes routers, Internet of Things (IoT) access devices, radio access networks for 4G and 5G and wireless equipment, with the main aim being to boost exports. Currently, equipment worth about Rs50,000 crore is imported, mainly from China.
The scheme, effective April 1, is also designed to boost the growth of micro, small and medium enterprises (MSMEs) by supporting locally made products.
For MSMEs, a 1% higher incentive is proposed in the first three years and the minimum investment threshold for them has been fixed at Rs10 crore. For others, it’s been kept at Rs100 crore. Companies will be offered incentives up to 6% of their initial investment over the first two years after their investment, up to 5% till the fourth year and 4% in the fifth year.
Source: Economic Times.