Production Linked Incentive Scheme (PLI) For Promoting Telecom & Networking Products Manufacturing In India

Support under the Scheme goes only to companies…

Support under the Scheme goes only to companies manufacturing goods in India that fall under the Scheme Target Segments; further, any foreign (non-resident) investment in the Applicant company must comply with the FDI Policy 2020, as amended and effective from time to time.

Eligibility depends on meeting the Global Manufacturing Revenue…

Eligibility depends on meeting the Global Manufacturing Revenue qualification criteria as defined in Clause 2.15 of the Scheme guidelines, as under:
Global companies: Global Manufacturing Revenue should be more than ₹ 10,000 Crore in the base year. Where a Group company's revenue for the base year has not been consolidated in INR, the revenue in the respective currency gets converted to INR at an average of currency exchange rates as on April 01, 2019 and March 31, 2020.
Domestic companies: Global Manufacturing Revenue should be more than ₹ 250 Crore in the base year.
MSMEs: Global Manufacturing Revenue should be more than Rs. 10 Crore in the base year.

Eligibility depends on thresholds of minimum cumulative Incremental…

Eligibility depends on thresholds of minimum cumulative Incremental Investment during the year and Incremental Sales of Manufactured Goods (covered under Scheme Target Segments) over the base year.
An Applicant must meet the threshold criteria to be eligible for disbursement of incentive for the year under consideration; eligibility threshold criteria are annexed in the Scheme and in Annexure 2 of these Guidelines.
Where an Applicant does not meet the eligibility threshold criteria as per Annexure 2 for any given year, the Applicant shall not be eligible for incentive in that particular year, with no carryover of incentive for such years. However, the Applicant remains free to claim incentive due in subsequent years during the tenure of the Scheme, provided eligibility criteria are met for those subsequent years.

When determining an Applicant's eligibility with respect to…

When determining an Applicant's eligibility with respect to Incremental Investment for any year, the cumulative value of investment made till such year (including the year under consideration) from 01.04.2021 gets considered. Even if the Applicant makes the entire committed investment in less than 4 years, incentive disbursement to eligible Applicants happens annually, based on the annual threshold investment communicated in the letter of approval.

When determining an Applicant's eligibility with respect to…

When determining an Applicant's eligibility with respect to Net Incremental Sales of Manufactured Goods covered under Scheme Target Segments for any year, the Net Sales of Manufactured Goods covered under Scheme Target Segments for such year over the Base Year gets considered.

An Applicant becomes ineligible for benefits under the…

An Applicant becomes ineligible for benefits under the DoT PLI Scheme if it has applied for/availed benefits under any other PLI Scheme of the Central Government for the same product. However, eligibility under this PLI Scheme will not affect eligibility under any Scheme being implemented by State/UT Governments, and vice-versa. Further, investment covered under this Scheme may not be considered for determining eligibility under any other PLI Scheme, and vice-versa.

The maximum financial allocation over 5 years for…

The maximum financial allocation over 5 years for the MSME category is limited to ₹ 1000 crores only.

An Applicant's status as MSME or Non-MSME gets…

An Applicant's status as MSME or Non-MSME gets determined at the time of selection only, and remains so for the entire duration of the Scheme.

For MSMEs, the minimum investment threshold is ₹10…

For MSMEs, the minimum investment threshold is ₹10 Crores: YearProposed Incentive RateCumulative InvestmentMinimum Eligible Incremental Net Sales# of Manufactured Goods over the Base YearMaximum Eligible Incremental Net Sales of Manufactured Goods over the Base year17%Greater than or equal to 20% of X3*(20% of X)20*(20% of X)27%Greater than or equal to 40% of X3*(40% of X)20*(40% of X)36%Greater than or equal to 70% of X3*(70% of X)20*(70% of X)45%Greater than or equal to X3*X20*X54%3*X20*X

For entities other than MSMEs, the minimum investment…

For entities other than MSMEs, the minimum investment threshold is ₹100 Crores: YearProposed Incentive RateCumulative InvestmentMinimum Eligible Incremental Net Sales# of Manufactured Goods over the Base YearMaximum Eligible Incremental Net Sales of Manufactured Goods over the Base year16%Greater than or equal to 20% of X3*(20% of X)20*(20% of X)26%Greater than or equal to 40% of X3*(40% of X)20*(40% of X)35%Greater than or equal to 70% of X3*(70% of X)20*(70% of X)45%Greater than or equal to X3*X20*X54%3*X20*X Here, X refers to the Committed Total Investment made by the Company/entity over a four-year period. MSMEs means Micro, Small and Medium Enterprises, as defined by the Government of India.
This is as defined under Clause 2.20 of the Scheme Guidelines.
Products that qualify under Design-led Manufacturing, as defined at Clause 2.8A, receive a further 1% incentive on top of the applicable rate, every year.

A copy of the PAN

A copy of the PAN.

An Authority Letter naming the Nodal Officer

An Authority Letter naming the Nodal Officer.

A Certificate of Incorporation

A Certificate of Incorporation. More details are available on the Scheme Implementation Portal.