The production-linked incentive (PLI) scheme for telecom and networking products has witnessed Rs 3,998 crore worth actual investment (against Rs 4,014 crore as committed investment) by micro, small and medium enterprises (MSMEs) and non-MSMEs, the Parliament was informed on Wednesday.

Minister of State for Communications and Rural Development, Dr Chandra Sekhar Pemmasani, said in a written reply to a question in Lok Sabha that total 42 beneficiaries have been approved under the PLI scheme for telecom and networking products (till October 31).

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In order to promote manufacturing of telecom products and reduce import dependency, the Department of Telecommunications (DoT) notified the PLI for telecom and networking products in 2021 with a total financial outlay of Rs 12,195 crore.

The scheme guidelines were amended in June, 2022 offering 1 per cent additional incentive for products designed, developed and manufactured in the country.

Earlier, the government informed that under the PLI scheme for telecom and networking products, exports reached Rs 12,384 crore (till September 30).

Till September, the applicant companies had clocked total sales worth Rs 65,320 crore, according to Pemmasani.

Salient features of the scheme are 33 telecom and networking products, incentives ranging from 4 to 7 per cent, an additional 1 per cent incentive for MSMEs for the first 3 years, and an additional 1 per cent incentive for products ‘Designed in India’.

Meanwhile, the PLI scheme for Large Scale Electronics Manufacturing was notified in 2020 to provide incentives to eligible companies on incremental sales (over the base year) involved in mobile phone manufacturing and manufacturing of specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.

By encouraging local production, the PLI scheme has significantly reduced the country’s reliance on imported telecom equipment. According to the government, the Indian manufacturers are increasingly competing on a global scale, offering high-quality products at competitive prices.