cabinet approved Rs 12195 crore PLI scheme for telecom equipment sector | Cabinet gives incentive of Rs 12,195 crore to telecom equipment companies

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New Delhi7 hours ago

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  • PLI scheme will create additional Rs 2,44,200 crore Telecom equipment in the country in next 5 years
  • Soon there will be a PLI scheme to encourage the production of laptops and PCs.

The Union Cabinet on Wednesday approved the Production-Linked Incentive (PLI) scheme for companies manufacturing telecom equipment. Under this, these companies will get an incentive of Rs 12,195 crore to increase production. This information was given by Union Minister Ravi Shankar Prasad on Wednesday.

After the cabinet meeting, the Minister said that this PLI scheme will create additional Rs 2,44,200 crore telecom equipment in the country in the next 5 years. Soon a PLI scheme will also come up to encourage the production of laptops and PCs. The government wants to make India a global hub of manufacturing. For this, an atmosphere of business ease has been created.

Import dependence will decrease

The scheme will increase domestic production of telecom and networking equipment and will also attract large-scale investment. Another advantage of this will be that the country’s dependence on the import of these products will decrease. Also, exports of Made in India products from the telecom and networking sectors will also get a boost.

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Only companies that achieve investment and sales targets will get help

According to an official statement, assistance will be given to companies making telecom and networking products set by the government under this scheme. Only companies investing at least a certain amount in the next 4 years will get this help. Companies will also have to achieve a minimum sales target after tax. For this, the base year has been made on 2019-2020. The minimum investment fixed for four years can also be made at a time.

Expect to get more than Rs 3,000 crore investment

In November 2020, the government announced the introduction of PLI schemes inside various ministries and departments. The cabinet’s latest decision is a sequel to that. It is expected that the sector will get an investment of more than Rs 3,000 crore from this scheme. Also, there will be uncountable employment directly and indirectly.

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