New Delhi, June 21 (KNN) With an aim to build a strong ecosystem for 5G in the country, the government has extended the Productivity-linked incentive scheme (PLI) by another year.

The allocation for MSMEs in the amended scheme has been enhanced from Rs 1,000 crore to Rs 2,500 crore.

The central government will also provide an additional incentives of over Rs 4,000 crore under the amended scheme.

The extension of the PLI scheme for the telecom industry has also expanded its scope to cover design-led manufacturing.

As per reports the scheme is open to both MSME and non-MSME companies, including domestic and global companies. The applications from design-led manufacturers shall be prioritised over other manufacturers while shortlisting.

Design led manufacturing is primarily aimed to support efforts for designing telecom products in India. It will recognise and encourage R&D-driven manufacturing in the country to enhance its contribution to the global value chain as envisaged in the National Digital Communication Policy, 2018.

A minimum global revenue criteria needs to be fulfilled by the applicants in order for them to be eligible under the scheme. Companies may invest in single or multiple eligible products.

The scheme stipulates a minimum investment threshold of Rs 10 crore for MSME and Rs 100 crore for non MSME applicants.

Land and building cost will not be counted as investment. The eligibility shall also be subject to incremental sales of manufactured goods (covered under scheme target segments) over the base year (FY2019-20).

The telecommunication department said that the decision to amend the scheme was taken following consultation with stakeholders who had complained of stiff incremental and production targets for the first year 2021-22.  (KNN Bureau)