Government has approved the Production Linked Incentive (PLI) Scheme for Telecom and Networking Products after widespread consultation with stakeholders like manufacturers, industry leaders and associations.
The core component of this scheme is to offset the huge import of telecom equipment worth more than Rs 50,000 crores and reinforce it with ‘Made in India’ products both for domestic markets and exports.
As per the scheme, it outlays Rs 12,195 crores over five years leading to enhanced production of more than Rs 2.4 lakh crore. The eligibility for the scheme will be subject to achievement of a minimum threshold of cumulative incremental investment and incremental sales of manufactured goods net of taxes.
Further, for MSMEs, minimum investment threshold for has been kept at Rs 10 Crores and for others at Rs 100 Crores. Once qualified, the investor will be incentivized up to 20 times of minimum investment threshold enabling them to utilize their unused capacity.
However, financial year 2019-20 shall be treated as the Base Year for computation purpose. The Scheme will be operational from 1st April 2021.
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Knowledge Source:
Income Tax Refund of Rs 1,93,455 Crore Issued till 15th February 2020