DoT Eases Confusion of Telecom Vendors on PLI Scheme

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The Department of Telecommunications (DoT) has eased the confusion of telecom vendors on the Production Linked Incentive (PLI) scheme meant for the telecom industry. The telecom department has said that it will take into account all the production and incremental investments made by the companies post-April 1, 2021 in India for the PLI scheme.

According to a FinancialExpress report, the DoT might come out with the final guidelines on the PLI scheme by the end of the week. The report further said that companies need not worry about anything and go ahead with planning their investments and production targets for the PLI scheme. The official related to the matter told the publication that select companies which fit into the scheme will be extended its benefits.

Telecom Companies Worried About Losing Precious Time

The telecom vendors are worried about losing their precious time from the scheme due to government delays. According to an earlier report from ET Telecom, the vendors were worried about losing about 4 months of their crucial time since the telecom department didn’t come with the final guidelines for the PLI scheme on time.

The vendors said that two months of their current financial year have already passed. Since the department hasn’t come out with the final guidelines, they are worried that it will take more time for the government to take the appropriate actions.

However, the government has asked the interested companies who have the capacity to make investments for becoming eligible for the PLI scheme to start planning since it will come out with the names and the final guidelines very soon.

Companies including Nokia, Ericsson, Cisco, Samsung, Dixon Technologies, and more have shown interest in being a part of India’s PLI scheme. For the unaware, to become eligible for the telecom sector’s PLI scheme, a small company needs to make a minimum investment of 10 crores. For big companies such as Nokia and Ericsson, the minimum investment required to be eligible for the scheme is Rs 100 crore.

The scheme will cover the production of telecom products including 4G and 5G next-generation radios, routers, Internet of Things (IoT) products, and more. Hopefully, the government can come out with the final guidelines as soon as possible so that the companies don’t have to lose out on more time.

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