Tenure for smartphone PLI extended by a year; BharatNet outlay hiked

The government has extended the tenure of production-linked incentive scheme for smartphones by a year as several manufacturers were unable to meet the first year (FY21) sales target due to Covid-led disruptions. Accordingly, the termination year of the scheme will now be FY26 instead of FY25. However, the outlay, investment and sales targets, base year, and incentive structure will remain the same.

The government has also made an additional allocation of Rs 19,041 crore for the ongoing BharatNet broadband project. With this the total outlay for the project will be Rs 61,109 crore, including the already approved amount of Rs 42,068 crore in 2017. This does not burden the government’s fiscal position as funds for BharatNet are provided from the universal service obligation fund where around Rs 55,000 crore is lying unutilised.