PLI Scheme in telecom sector was launched for realizing the Prime Minister’s vision of Atma Nirbhar Bharat. This scheme would help in reducing dependence of India on other countries for importing telecom and networking products.

Who launched the scheme?

The PLI Scheme in telecom sector is being launched by DoT with the objective of boosting domestic manufacturing of telecom and networking products. Manufacturing will be boosted by incentivising incremental investments and turnover. This scheme was launched with the total outlay of Rs 12,195 crore.

When it will come into effect?

The scheme is effective from April 1, 2021. Investment made by successful applicants in India in between April 1, 2021 to FY 2024-25 will be eligible. Eligibility is subject to qualifying incremental annual thresholds. Support under the Scheme will be provided for a period of five years (from FY 2021-22 to FY 2025-26).

Which companies are eligible?

According to Scheme and Scheme Guidelines, about 31 companies, comprising of 16 MSMEs & 15 Non-MSMEs, have been found eligible are being given approval under the PLI Scheme. Some of the eligible MSME companies are: Coral Telecom Limited, Frog Cellsat Limited, Ehoome IoT Private Limited, GDN Enterprises Private Limited etc. These 31 applicants are expected to invest Rs 3345 crore over a period of 4 years and generate incremental employment to about 40000 people.