Production Linked Incentive Scheme (PLI) For Promoting Telecom & Networking Products Manufacturing In India

Incentive Outlay & Eligibility Threshold"

<br>

a) For MSMEs- Minimum Threshold of Investment ₹ 10 Crores

YearProposed Incentive RateCumulative InvestmentMinimum Eligible Incremental Net Sales# of Manufactured Goods over the Base YearMaximum Eligible Incremental Net Sales of Manufactured Goods over the Base year17%Greater than or equal to 20% of X3*(20% of X)20*(20% of X)27%Greater than or equal to 40% of X3*(40% of X)20*(40% of X)36%Greater than or equal to 70% of X3*(70% of X)20*(70% of X)45%Greater than or equal to X3*X20*X54%3*X20*X<br>

b) Other than MSMEs- Minimum Threshold of Investment ₹ 100 Crores

YearProposed Incentive RateCumulative InvestmentMinimum Eligible Incremental Net Sales# of Manufactured Goods over the Base YearMaximum Eligible Incremental Net Sales of Manufactured Goods over the Base year16%Greater than or equal to 20% of X3*(20% of X)20*(20% of X)26%Greater than or equal to 40% of X3*(40% of X)20*(40% of X)35%Greater than or equal to 70% of X3*(70% of X)20*(70% of X)45%Greater than or equal to X3*X20*X54%3*X20*X<br>

Where X = Committed Total Investment by the Company / entity over a period of four years

MSMEs = Micro, Small and Medium Enterprises as defined by the Government of India.

As defined under Clause 2.20 of the Scheme Guidelines.

An additional incentive of 1% over and above the applicable rates of incentive for products qualified under Design-led Manufacturing, as defined at Clause 2.8A, in each year.

<br>

Qualification and Eligibility

1. Support under the Scheme shall be provided only to companies for manufacturing of goods in India as covered under Scheme Target Segments. Further any foreign (non-resident) investment in the Applicant company shall PLI Scheme Guidelines for Telecom and Networking Products be in compliance to the FDI Policy 2020, as amended and effective from time to time.
2. Eligibility shall be subject to qualification criteria for the Global Manufacturing Revenue as defined in Clause 2.15 of Scheme guidelines, as under:

• Global companies: Global Manufacturing Revenue should be more than ₹ 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. - Domestic companies: Global Manufacturing Revenue should be more than ₹ 250 Crore in the base year. - MSMEs: Global Manufacturing Revenue should be more than Rs. 10 Crore in the base year.

1. Eligibility shall be subject to thresholds of minimum cumulative Incremental Investment during the year and Incremental Sales of Manufactured Goods (covered under Scheme Target Segments) over the base year.

• An Applicant must meet threshold criteria to be eligible for disbursement of incentive for the year under consideration. Eligibility threshold criteria are annexed in the Scheme and in Annexure 2 of these Guidelines.
• In case an Applicant does not meet eligibility threshold criteria as per Annexure 2, for any given year, the Applicant shall not be eligible for incentive in that particular year. There will not be any carryover of incentive for such years. However, the Applicant will not be restricted from claiming incentive due in subsequent years during the tenure of the Scheme, provided eligibility criteria are met for such subsequent years.

1. For the purpose of determining eligibility of an Applicant with respect to Incremental Investment for any year, the cumulative value of investment done till such year (including the year under consideration) from 01.04.2021 shall be considered. Even if the entire committed investment is made by the Applicant in less than 4 years, the incentive will be disbursed annually to the eligible Applicants based on the annual threshold investment communicated in the letter of approval.
2. For the purpose of determining eligibility of an Applicant with respect to Net Incremental Sales of Manufactured Goods covered under Scheme Target Segments for any year, the Net Sales of Manufactured Goods covered under Scheme Target Segments for such year over the Base Year shall be considered.
3. An Applicant shall become ineligible for availing benefits under the DoT PLI Scheme, if it has applied/availed benefits under any other PLI Scheme of the Central Government for the same product. However, eligibility under PLI Scheme will not affect eligibility under any other Scheme being implemented by State/UT Governments and vice-versa. Further, for the purpose of determining eligibility of an Applicant with respect to incremental investment, the investment covered under the Scheme may not be considered for determining eligibility under any other PLI Scheme and vice-versa.
4. Maximum financial allocation over 5 years for MSME category will be limited to ₹ 1000 crores only.
5. 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.

<br>

Step 1: Applicants are required to visit the Scheme implementation portal PLI Telecom Scheme Portal and register, then fill the application form.

Step 2: On submission of the above information, a mail will be sent to the Nodal Officer&amp;#39;s e-mail ID with a link for verification of the mobile number.

Step 3: The information and documents submitted will be checked by PMA and once this process is completed, the Applicant will receive a mail confirming successful registration on the portal within 2 working days.

Step 4: After the registration process, the Nodal Officer will be able to sign in to the portal using the registered mobile number and OTP and start submission of the application. The application format can also be accessed from the portal (for understanding purposes only), but the application must be submitted online.

Step 5: Section 3 (Commitment Section) of the application must be password protected before submission. This section will be unlocked after the application submission period closes and will then be available for scrutiny by PMA/DoT.

Step 6: The applicant must pay a non-refundable application fee of ₹1 lakh through RTGS/NEFT to the specified bank account (Indian Overseas Bank, Sanchar Bhawan Branch, New Delhi).

Step 7: After receiving the application, an initial scrutiny will be carried out by PMA within 15 working days from the last date of submission to ensure all required information, documents, certificates, and proof of fee payment are provided. Any deficiencies found will be communicated to the applicant.

Step 8: The applicant must rectify any deficiencies within 15 working days from the date of notification by PMA. Failure to do so may result in the application being marked ineligible.

Step 9: After completion of the scrutiny process, the list of shortlisted eligible applications will be recommended by PMA to the Department of Telecommunications (DoT) for approval by the competent authority.

<br>