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PLI Scheme For Telecom Sector: All You Need To Know

To become eligible, the applicants need to fulfill the minimum revenue criteria.

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The Department of Telecommunications (DoT) has implemented the guidelines of the Production Linked Initiative Scheme (PLI) on Thursday, June 3, 2021. 

To boost local manufacturing and reduce the import burden, the Central Government notified the PLI scheme for the telecom sector on 24 February 2021 and it was to be implemented from 1 April 2021.

After the launch of Aatmnirbhar Bharat, the government is significantly boosting the manufacturing sector, be it smartphone components, automotive components, and now the telecom sector. With the launch of the PLI Scheme for the telecom sector, the government is aiming to make India a manufacturing hub for telecom equipment and networking goods. 

To decode it in simplest terms, the selected telecom-linked companies will get the incentives to locally produce the equipment which they were earlier importing from some other countries. This will significantly raise the bar of local production and due to local manufacturing, the price of products or services will also be positively impacted, the government hopes. 

What is Required?

To become eligible under the scheme, the applicants need to fulfill the minimum revenue criteria. The minimum investment threshold for MSMEs is fixed at Rs 10 crore whereas, Rs 100 crore will be required in the case of the non-MSME applicants. The noteworthy point here is that the coat of land and building will not add up to qualify as an investment. 

The PLI scheme will be implemented over five years with a financial limit of Rs 12,195 crore, out of which Rs 1,000 crore will be allocated to the MSME category, the government said.

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