Lok Sabha Question No. 247 (UNSTARRED), answered on 2024-11-27
Subject: Rapid Growth in Telecom
Ministry: COMMUNICATION
Asked by: Shri Eswarasamy K

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO. 247 TO BE ANSWERED ON 27 TH  NOVEMBER, 2024

## RAPID GROWTH IN TELECOM

## 247 SHRI ESWARASAMY K:

Will the Minister of COMMUNICATION be pleased to state:

- (a) whether it is a fact that in spite of rapid growth in telecommunications, the telecom equipment manufacturing industry has not been properly encouraged;
- (b) if  so,  whether  Government  has  taken  or  proposes  to  take  any  drastic  steps  to  encourage indigenous telecom manufacturing units in the country; and
- (c) if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT (DR. PEMMASANI CHANDRA SEKHAR)

(a) to (c) The Government is committed for development of telecom equipment manufacturing industry  in  the  country.  Steps  taken  by  the  Government  to  encourage  indigenous  telecom manufacturing are as follows:

1. Production Linked Incentive (PLI) Scheme for telecom and networking products: The PLI scheme was launched in June, 2021. Salient features of the scheme are as under:
2.  Total financial outlay of Rs. 12,195 Crore.
3.  Total of 33 telecom and networking products.
4.  Incentives ranging from 4 to 7%.
5.  Additional 1% incentive for MSMEs for first 3 years.
6.  Additional 1% incentive for products 'Designed in India'.

As on 30.09.2024, performance of the scheme, is as under:

- o Total 42 applicant companies including 28 MSMEs.
- o Cumulative Investment (Rs. Crore): 3,925
- o Total Sales (Rs. Crore): 65,320
- o Out of which, exports (Rs. Crore): 12,384
2. Telecom  Technology  Development  Fund  (TTDF)  Scheme: The  TTDF  scheme  was launched on 01.10.2022 with the aim at funding research and development of technologies, products and services for providing telecom services in rural and remote areas.

3. Digital  Communications  Innovation  Square  (DCIS)  Scheme: The  DCIS  Scheme  was launched in 2021 to support translation of innovative ideas and knowledge in engineering into pilot scale operation, field deployment or viable technology development.
4. Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing: The scheme was notified on 1 st  April, 2020 to provide incentive to eligible companies on incremental sales  (over  base  year)  involved  in  mobile  phone  manufacturing  and  manufacturing  of  specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.
5. Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS): The scheme was notified on 1 st April, 2020 to provide financial incentive of 25% on capital expenditure for the identified list of electronic goods that comprise downstream value chain of electronic products, i.e., electronic components, semiconductor/ display fabrication units, ATMP units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods.
6. Modified  Electronics  Manufacturing  Clusters  (EMC  2.0)  Scheme: The  scheme  was notified on 1 st  April, 2020 to provide support for creation of world class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds/ Plug and Play facilities for attracting major global electronics manufacturers along with their supply chain to set up units in the  country.  The  scheme  provides  financial  assistance  for  setting  up  of  both  EMC  projects  and Common Facility Centres (CFCs) across the country.

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