Lok Sabha Question No. 883 (UNSTARRED), answered on 2024-02-07
Subject: PLI Scheme
Ministry: COMMUNICATIONS
Asked by: Sangeeta Kumari Singh Deo, Dimple Yadav

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO. 883 TO BE ANSWERED ON 7 TH  FEBRUARY, 2024

## PLI SCHEME

## 883. SHRIMATI SANGEETA KUMARI SINGH DEO: SHRIMATI DIMPLE YADAV:

Will the Minister of COMMUNICATIONS be pleased to state:

(a) whether the Ministry has  received  applications  under  the  Design-Linked  Incentive  (DLI) Scheme and Production Linked Incentive (PLI) scheme;

(b) if so, the details thereof including the number of applications received, amount of investment, employment created, production and sales done so far, year-wise;

(c)  whether  the  Government  succeeded  through  Production  Linked  Incentive  (PLI)  scheme  that promote Telecom and Networking Products manufacturing;

(d) if so, the details thereof, year-wise; and

(e)  the  other  steps  taken/being  taken  by  the  Government  for  effective  implementation  of  these schemes?

## ANSWER

## MINISTER OF STATE FOR COMMUNICATIONS (SHRI DEVUSINH CHAUHAN)

(a) to (e) Government is committed to develop entire electronics and telecom manufacturing ecosystem  in  India.  To  develop  telecom  technologies  and  promote  manufacturing,  multiple initiatives have been taken. These are enumerated as follows:

## PLI in telecom sector:

Production  Linked  Incentive  (PLI)  Scheme  for  Telecom  and  Networking  Products  was launched in June, 2021. Within a short span, it has catalyzed production of telecom equipment in India. The details are as follows:

-  Total of 33 telecom and networking products.
-  Incentives ranging from 4 to 7%.
-  Additional 1% incentive for MSMEs for first 3 years.
-  Additional 1% incentive for products 'Designed in India'.
-  Total 42 applicant companies including 28 MSMEs.
-  Total financial outlay:  Rs. 12,195 Crore.

Achievements of PLI in telecom sector:

|                              | Total commitment by applicants   | Progress till 31 st December, 2023   |
|------------------------------|----------------------------------|--------------------------------------|
| Investment                   | 4,014 Crore                      | 2,963 Crore                          |
| Incremental Sales            | 2,37,807 Crore                   | 42,554 Crore                         |
| Additional direct employment | 44,494                           | 16,106                               |

-  Under telecom PLI scheme, products worth Rs 9,712 Crore have been exported as on 31.12.2023.
-  As on date, Rs. 34.97 Crore has been disbursed under the PLI Telecom Scheme for FY 2021-22.

## TTDF:

-  Government  launched  Telecom  Technology  Development  Fund  (TTDF)  Scheme  on 01.10.2022.
-  TTDF is  aimed  at  funding  research  and  development  of  technologies,  products,  and services for providing telecom services in rural and remote areas.
-  More than  405 applications  have  been  received  under  TTDF  scheme from  Start-ups, MSMEs, Academia, etc. After due assessment, 12 applications with a total outlay of Rs. 277.15  Crore  has  been  approved  so  far.  These  include  setting  up  Advanced  Optical Communications Test Bed and 6G Tera Hertz Test Bed with Orbital Angular Momentum and Multiplexing.

## DCIS Scheme:

-  Government has launched Digital Communications Innovation Square (DCIS) Scheme to promote and support translation of innovative ideas and knowledge by Start-ups/MSMEs.
-  Government has supported more than 96 start-ups/MSMEs till date with Rs. 74.7 Crore as grant-in-aid under this scheme.
-  These innovators are working on backhaul radio and communication technologies, LTE Advanced, 5G/6G and future generation access technologies, Software Defined Networks (SDNs) etc.

## Made in India 5G:

-  India has witnessed one of the fastest roll-out of 5G anywhere in the world with nearly 4.19 Lakh sites commissioned as on 31.01.2024.
-  A significant amount of equipment used in roll-out of the 5G is 'Made in India'.

## Developing indigenous 5G

-  Under Atmanirbhar Bharat, indigenous 4G/5G telecom stack has been developed and is under deployment in BSNL network.

## Developing ecosystem:

Government of India's goal is to broaden and deepen the country's electronic manufacturing ecosystem as well as increase India's participation in electronics Global Value Chains (GVCs). Government has taken several measures to boost electronics manufacturing. They include:

-  Production Linked Incentive Schemes (PLI for Large Scale Electronics Manufacturing and PLI for IT Hardware).

-  Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS).
-  Modified Electronics Manufacturing Clusters 2.0 (EMC 2.0).
-  Further,  a  program  for  Development  of  Semiconductors  and  Display  manufacturing Ecosystem  was  also  introduced,  wherein,  schemes,  viz.,  Scheme  for  setting  up  of Semiconductor and Display Fabs, Scheme for setting up of Compound Semiconductors / Silicon  Photonics  /  Sensors  Fab  /  Discrete  Semiconductors  Fab  and  Semiconductor Assembly,  Testing,  Marking  and  Packaging  (ATMP)  /  Outsourced  Semiconductor Assembly  and  Test  (OSAT)  and  Design  Linked  Incentive  (DLI)  Schemes  are  being implemented.

## Impact of Government initiatives:

-  As a result of these measures the domestic production of electronic items has increased significantly from Rs 1,80,454 Crore (USD 29.8 Billion) in 2014-15 to Rs. 8,22,350 Crore (USD 102 Billion) in 2022-23.
-  Further, construction on first semiconductor unit under the Semicon India program has commenced in Sanand, Gujarat.
-  A prominent semiconductor company has started its largest semiconductor design centre in Bengaluru.
-  Another  prominent  semiconductor  company  has  collaborated  with  Indian  Institute  of Science to train a large pool of engineers conversant in semiconductor technologies.
-  Further, Mobile production has increased from Rs 18,900 Crore in 2014-15 to Rs 3,50,000 Crore in 2022-23. From about 78% import dependence in 2014, India has reached a stage where 99.2% of all mobiles sold in India are 'Made in India'.

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