Cabinet Approves PLI Scheme for Telecom Sector
Bhaskar Thakkar
Passionate Golfer & Founder BT Associates (Indirect Tax - Consulting firm) & GSTidea.com (Knowledge Sharing Portal on GST)
Background
The union cabinet has approved Production Linked Incentive (PLI) Scheme worth Rs. 12,195 crore for telecom manufacturing equipment including the next generation 5G technology. The core reason behind this decision is to reinforce it with “Made in India” products both for domestic market and exports and to offset the imports of telecom equipment worth more than Rs. 50,000 crore.
After the encouraging success of PLI related to mobile and component manufacturing, which was announced in April 2020 during the height of the pandemic, the government expects that this will scheme lead to Rs.2.4 trillion increment in productions of telecom equipments also in the country in next five years and will bring investment of more than Rs.3000 crore along with generation of direct and indirect employment. The scheme will be operational from 1st April 2021.
Product Line
- i Core Transmission Equipment
- ii 4G/5G, Next Generation Radio Access Network and Wireless Equipment
- iii Access & Customer Premises Equipment (CPE), Internet of Things(IoT), Access Devices and other Wireless Equipment.
- iv Enterprise equipment: Switches and Router