• Production Linked Incentive (PLI) is an outcome and output-oriented scheme where incentives are disbursed only after production has taken place in the country.
• New scheme would be implemented by Department of Telecommunications (DOT).
• This move is part of a previously planned expansion of the PLI scheme’s success in mobile devices and electronic components, medical devices, and active pharmaceutical ingredients.
• It aims to make India a global hub of manufacturing telecom equipment.
Salient features of scheme:
• Investor will be incentivized up to 20 times of minimum investment threshold enabling them to utilize their unused capacity.
• Incentive structure ranges between 4% and 7% for different categories and years.
• Core transmission equipment,
• 4G/5G next-generation Radio Access Network and Wireless Equipment,
• Access & Customer Premises Equipment,
• Internet of Things Access Devices,
• Other Wireless Equipment and Enterprise equipment like Switches, Routers etc.
• Minimum Investment threshold for MSME is Rs. 10 Crores and for others Rs. 100 Crores.
• Financial Year 2019-20 shall be treated as Base Year for computation.
Significance of scheme:
• Offsetting the huge import of telecom equipment worth.
• Reinforcing with “Made in India” products.
• Generate direct, indirect employment and tax revenue.
Mains Paper 3: Economy
Prelims level: Production Linked Incentive
Mains level: Salient features and significance of the scheme