Govt considers revising PLI scheme for telecom to spur 5G adoption

The government is contemplating the release of a revamped version of the production-linked incentive (PLI) scheme for telecom equipment, according to a report by The Economic Times (ET). With over Rs 1,500 crore unutilised and less than half of the 42 companies meeting their financial year 2022-23 (FY) targets, the revised scheme aims to incentivise additional telecom networking products and open doors for fresh applications.

The Department of Telecommunications (DoT) introduced the PLI scheme for telecom and networking products in February 2021 with a Rs 12,195 crore outlay. However, only 31 out of 42 selected companies received approval for the scheme, prompting the government to consider revisions. The PLI scheme was amended in April last year to promote design-led manufacturing, with an additional incentive rate of one per cent.