: Cabinet approves over Rs 12,000 cr PLI scheme for telecom sector #FinanceIndia #StockMarketNEWS Cabinet approves over Rs 12,000 cr PLI scheme for telecom sector New Delhi, Feb 17 (KNN) The Union Cabinet,

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Cabinet approves over Rs 12,000 cr PLI scheme for telecom sector #FinanceIndia #StockMarketNEWS
Cabinet approves over Rs 12,000 cr PLI scheme for telecom sector New Delhi, Feb 17 (KNN) The Union Cabinet, chaired by the Prime Minister, Narendra Modi, on Wednesday approved Production Linked Incentive (PLI) Scheme for Telecom and Networking Products with a budgetary outlay of Rs. 12,195 crore.

The Production Linked Incentive (PLI) scheme intends to promote manufacture of Telecom and Networking Products in India and proposes a financial incentive to boost domestic manufacturing and attract investments in the target segments of telecom and networking products in order to encourage Make in India.

The scheme will also encourage exports of telecom and networking products Made in India.

Support under the Scheme will be provided to companies/entities engaged in manufacturing of specified telecom and networking products in India, an official statement said.

Eligibility will be further subject to achievement of a minimum threshold of cumulative incremental investment over a period of four years and incremental sales of manufactured goods net of taxes (as distinct from traded goods) over the Base Year 2019-2020. The cumulative investment can be made at one go, subject to annual cumulative threshold as prescribed for four years being met the statement added.

Globally Telecom and Networking Products exports represent an 100 billion dollar market opportunity, which can be exploited by India. With support under the scheme, India will augment capacities by attracting large investments from global players and at the same time encourage promising domestic champion companies to seize the emerging opportunities and become big players in the export market.

In continuation of "Atmanirbhar Bharat-Strategies for enhancing Indias Manufacturing capabilities and enhancing exports", this scheme is part of the umbrella scheme approved by the cabinet in November 2020 for implementation of PLI under various Ministries/ Departments including Department of Telecommunications (DoT).

There will be a minimum investment threshold of Rs 10 crore for MSME with incentives from 7 to 4 per cent and Rs 100 crore for others with incentives from 6 to 4 per cent over 5 year above Base Year. The applicants with higher investments than specified threshold under MSME and Non MSME categories will be selected through a transparent process, it said.

With this scheme, India will be well positioned as a global hub for manufacturing of Telecom and Networking Products. Incremental production around Rs 2 Lakh crore is expected to be achieved over 5 years. India will improve its competitiveness in manufacturing with increased value addition.

It is expected that the scheme will bring more than Rs 3,000 crore investment and generate huge direct and indirect employment.