Guwahati: The Union Budget 2022–23 proposes launching a scheme for design-led manufacturing as part of the existing PLI Scheme in order to develop a robust ecosystem for 5G. Following stakeholder engagements, the Guidelines for the PLI Scheme for Telecom & Networking Products were revised to include Design-led Manufacturing with extra incentive rates.

Furthermore, based on comments from stakeholders, including the chosen PLI applicants, the Department of Telecommunications has decided to prolong the existing PLI Scheme by one year. Existing PLI recipients will be offered the option of selecting either fiscal year 2021-22 or fiscal year 2022-23 as the first year of incentive.

The Department of Telecommunications has also authorised the inclusion of 11 new telecom and networking items to the existing list, based on requests from stakeholders.

To promote design-led manufacturing, the Department of Telecommunications (DoT) is soliciting proposals from design-led manufacturers and others to take advantage of a five-year incentive under the PLI Scheme beginning April 1, 2022.

Successful applicants' investments in India from 1st April 2022 onwards and up to Financial Year (FY) 2025-2026 are eligible, subject to qualifying incremental yearly levels. The Scheme is available to both MSME and Non-MSME businesses, both domestic and international.

Read more: https://www.business-northeast.com/5g-rollout-soon-to-begin-in-20-25-cities-by-the-end-of-2022/

Also read: https://www.business-northeast.com/cabinet-approves-auction-of-imt-5g-spectrum/

When shortlisting, submissions from Design-led manufacturers will be favoured above those from other manufacturers.

To be eligible for the Scheme, applicants must meet the minimum Global Revenue requirements. The Company may elect to invest in a single or several qualifying items. The Scheme establishes a minimum investment requirement of 10 crores for MSME applicants and 100 crores for non-MSME applicants. Land and construction costs will not be considered investments. Eligibility will also be determined by incremental sales of manufactured goods (as defined by the Scheme Target Segments) above the base year (FY2019-20). The budget for MSME has been increased from 1000 to 2500 crores.

Interested qualified applicants can begin the Scheme registration procedure on June 21, 2022, at https://www.pli-telecom.udyamimitra.in. The application window will be available for 30 days, through July 20, 2022.

These applications are being solicited for a balanced amount of over 4000 crores. This would promote the manufacture of telecom and networking devices, allowing India to establish a 5G ecosystem.