PLI scheme: DoT offers clarifications on telecom PLIs, design schemes

The Department of Telecommunications (DoT) has clarified that if a company currently receiving benefits from the Telecommunications Equipment Production Incentive (PLI) program wishes to revise its investment and net sales to obtain an additional 1% for design-driven manufacturing, it must apply again.

After being selected, the company will have to leave the existing approval and give up its investment made in 2021-22.

“Existing company cannot revise committed net incremental investment/sales forecast without participation and selection within the window provided now,” the DoT said in a list of frequently asked questions released recently.

However, the existing business can claim the incentive for 2021-22 with the investment or net sales figures achieved under the normal PLI program rates and obtain higher rates for qualified products under the manufacturing criteria. design-focused for the remaining four years. The total annual incentive payable, however, will be limited to the amount of the annual incentive already approved for the company.

The DoT further clarified that although the PLI scheme has been extended for one year, companies can only claim benefits for five years, not six years. Businesses will have the option to choose 2021-22 or 2022-23 as the first year of the incentive.

The department had notified the PLI scheme for the manufacture of telecommunications equipment with an expenditure of Rs 12,195 crore spread over five years, on February 24 last year. A total of 31 companies, including 16 micro, small and medium-sized enterprises (MSMEs) and 15 non-MSMEs, eight local companies and seven foreign companies, were approved on October 14, 2021.

In April, the PLI program was modified to facilitate design-driven manufacturing with an additional incentive rate of 1% on top of the existing incentive rates. For this, Rs 4,000 crore has been set aside from the existing corpus of Rs 12,195 crore for this purpose. In addition, telecommunications and network products have been added to the list of eligible products.

Companies wishing to apply for Design-Driven Manufacturing can submit their applications by August 25.

Companies that apply for Design Driven Manufacturing and claim that only certain products would meet the criteria will be treated as non-compliant. However, these companies will be given priority over companies whose products do not all meet the Design Driven Manufacturing criteria.

“Applicant companies applying for all products that meet the design criteria must provide a certificate stating that all products they manufacture under this program meet the criteria set out in clause 2.8 A, to be given priority to manufacturers not meeting design criteria. criteria conducted at the time of ranking for selection under the program,” the DoT said.

These companies will be required to demonstrate their ability to comply with design-based manufacturing criteria at the time of application review.

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