The Production Linked Incentive (PLI) Scheme would promote Telecom and Networking Products manufacturing in India and accordingly, a financial incentive is proposed 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 is also expected to boost export of telecom and networking products “Made in India”.

The Scheme will be implemented within the overall financial limits of Rs 12,195 Crores only (Rupees Twelve Thousand One Hundred and Ninety-Five Crore only) over a period of 5 years. The scheme is effective from 1st April, 2022. The investment will be permitted to be made in made in India from 01.04.2022 onwards and up to Financial Year (FY) 2025-2026 only, subject to qualifying incremental annual thresholds. The support under the Scheme shall be provided for a period of five (5) years, i.e. from FY 2022-23 to FY 2026-27.

Applicant for the purpose of the Scheme is a company registered in India under the Companies Act 2013, proposing to manufacture goods covered under Scheme Target Segments as defined hereinafter, and making an application seeking approval under the Scheme.

The Applicant can set up new or use existing manufacturing facility(ies) to manufacture goods covered under the Scheme Target Segments. The aforesaid manufacturing can be carried out at one or more locations in India, which will however be prior intimated to Department of Telecommunications (DoT). The Applicants who are declared as Non-Performing Asset (NPA) as per RBI guidelines or wilful defaulter or reported as fraud by any bank, financial institution or non-banking financial company etc. would be considered as ineligible. Further, there should not be any insolvency proceedings admitted against the Applicant in the National Company Law Tribunal (NCLT), etc.

Application can be made under following two categories:
a)MSME: Companies registered as Micro, Small & Medium Enterprises (MSME) with the Ministry of MSME, Government of India.
b) Non MSMEs: Companies which do not fall under the MSME category will be classified as Non MSMEs. The Non MSMEs category shall be further sub-divided in two categories:
i. Domestic Company: As per the FDI Policy 2020, a company is considered as ‘Owned’ by resident Indian citizens if more than 50% of the capital in it is beneficially owned by resident Indian citizens and / or Indian companies, which are ultimately “owned” and “controlled” by resident Indian citizens. Such a company will be defined as “Domestic Company” for the purpose of these guidelines.
ii. Global Company: Global Company means a company which does not qualify as Domestic Company as defined above and is having business in one or more than one country either by itself or including its Group Companies (Refer FAQ No.8).

Applicants have to satisfy the following criteria to be eligible under the PLI Scheme for Telecom and Networking Products manufacturing in India:
a) Minimum Global Revenue defined as per the Scheme Guidelines for Global, Domestic and MSME Companies.
b) Eligibility will be subject to achievement of a minimum threshold of cumulative incremental investment over a period of four years and incremental sales of manufactured goods (covered under Scheme Target Segments) net of taxes (as distinct from traded goods) over the Base Year (FY2019-2020). The cumulative investment can be made at one go, subject to annual cumulative threshold as prescribed for four years being met. An applicant is expected to meet all the minimum threshold conditions to be eligible for disbursement of incentive. The Company/entity may invest in single or multiple eligible products to meet minimum incremental investment and sales threshold.
c) There will be a minimum investment threshold of ₹ 10 Crores for MSME an ₹ 100 Crores for others. Land and building cost will not be counted as investment.
Total number of beneficiaries will be limited owing to the fixed ceiling of the budgetary outlay.

The following will be the eligibility qualification criteria for Global Revenue as per the PLI Scheme for Telecom and Networking Products:
a) MSMEs: Global Revenue should be more than Rs. 10 Crore in the base year (2019-20).
b) Domestic Companies: Global Revenue should be more than Rs.250 Crore in the base year.
c) Global Companies: Global Revenue should be more than Rs. 10,000 Crore in the base year.
In case of Group companies of Applicant, whose revenues for the Base year have not been consolidated in INR, the revenue in the respective currency shall be converted to INR at an average of currency exchange rates as on April 01, 2019 and March 31, 2020.

Yes, the global revenue is Consolidated Gross Revenue

Yes, the Global revenue includes all the revenues in the electronics, IT/ITES including software, telecom and networking segments

As per the Scheme Guidelines, Group Company means two or more enterprises which, directly or indirectly, are in a position to:
a) Exercise twenty-six percent or more of voting rights in other enterprise; or
b) Appoint more than fifty percent of members of board of directors in the other enterprise.

In case any group company of the applicant is located in a country where FY doesn’t match with FY as in India, they would provide revenues of the company for the period of the base year, instead of their FY.

In case of Group companies of Applicant, whose revenues for the Base year have not been consolidated in INR, the revenue in the respective currency shall be converted to INR at an average of currency exchange rates as on April 01, 2019 and March 31, 2020.

The Scheme Target Segments consists of Specified Telecom and Networking Products which will be allowed to be manufactured under this PLI Scheme. The list of products have been classified as mentioned below:

a) Core Transmission Equipment.
b) 4G/5G, Next Generation Radio Access Network and Wireless Equipment.
c) Access & Customer Premises Equipment (CPE), Internet of Things (IoT) Access Devices and Other Wireless Equipment.
d) Enterprise equipment: Switches, Routers.

New Product have been added vide DoT Office Memorandum dated 20-06-2022. For complete list of the Specified Telecom & Networking Products, Click here

Yes, the claim can only be filed for the products covered under the approval letter issued to the Applicant company. New product cannot be added at a later stage.

Baseline for investment in the Scheme will be as on 31/03/2022. Base Year for Net Sales of Goods Manufactured in India (covered under the Scheme Target Segment) will be from 01.04.2019 to 31.03.2020

Investment under the PLI Scheme for Telecom and Networking Products can be made in the Scheme Target Segments, capitalized in the books of accounts of the Applicants under the following categories:
a) Plant, Machinery, Equipment and Associated Utilities.
b) Research and Development.
c) Transfer of Technology (ToT) Agreements.

As per the amendments to the Scheme Guidelines dated 20-06-2022, the limits on the eligible investment made in Research & Development and the Transfer of Technology Agreements have been removed.

All non-creditable taxes and duties would be included towards the expenditure incurred on eligible category of investment as per the PLI Scheme for Telecom and Networking Products.

The expenditure incurred on land and building (including factory building / construction) required for the project / unit is not covered under the Scheme and, therefore, will not be considered for determining eligibility under the Scheme. However, expenditure incurred on civil works associated with installation and erection of plant, machinery, equipment, and associated utilities shall be eligible.

Yes. The usage of such machinery for manufacturing of other products also is not prohibited. However, the Applicant must submit a declaration about usage of machinery for each year during the period that such Applicant is claiming incentive under the Scheme.

A sample calculation for incentive over the base year (FY2019-20) for Applicant Companies in the MSME and Non-MSME Category is given below:

# In Y1, due to net incremental sales more than 20 times the minimum investment, the company is getting incentive only for 20 times the minimum investment value i.e. 20 *(20% of sales)

As per clause 9.1 of the Scheme Guidelines, the baseline will be considered for all the products covered in the Scheme Target Segments (as per Annexure 1 of the scheme guidelines) net of taxes.
For Example, if in the base year, the company is manufacturing 5 products under the Scheme Target Segment, the baseline will be considered for all 5 products for calculating incremental turnover, irrespective of whether the company produces only 3 of those 5 products in the claim year.

Yes, all turnover pertaining to the additional product will be considered for calculation of net incremental sales, provided the product is covered under the Scheme Target Segment and mentioned in the approval letter issued to the Applicant company by the PMA (as per clause 10.6.3)

The manufacturing can be carried out at one or more locations in India, which is however to be prior intimated to DoT i.e. before commencement of manufacturing activity at the new location.

Yes, as per clause 3.8, the status of Applicants as MSMEs or Non-MSMEs will be determined at the time of selection only and it will remain so during the entire duration of the Scheme.

A non-refundable application fee of INR 1,00,000 would be payable for each application. The application fee, as specified, would be accepted electronically only. The account details are as under: