Question: What is the application process for Production Linked Incentive Scheme (pli) For Promoting Telecom & Networking Products Manufacturing In India?

Answer: Here's how to apply for Production Linked Incentive Scheme (pli) For Promoting Telecom & Networking Products Manufacturing In India:

?New Applicant companies who apply for a mix of products & declare that only some of them would comply with
Design-led manufacturing criteria; shall be treated as non-compliant Design-led manufacturers. Their applications will be considered as
per Clause 2.3 of the amendment dated 20th June 2022. However, these companies will get priority over companies in whose case all the
products are non-compliant with the Design-led manufacturing criteria. Further, such companies have to demonstrate their capabilities to
comply with Design-led Manufacturing Criteria at the time of scrutiny of application.If An Applicant Company At The Time Of
Application Submits That All Its Products Comply With The Design-Led Criteria (As Defined In Clause 2.8A), But At A Later Stage
Some Of The Products Are Found Non-Compliant, Then How The Incentives Will Be Decided?Applicant companies who now apply for
all products complying with Design-led criteria should give a certificate declaring that all the products manufactured by them under this
Scheme satisfy the Design-led Manufacturing criteria as defined in Clause 2.8A, to be given priority over manufacturers not compliant
with Design-led criteria at the time of ranking for selection under the Scheme. Further, such companies have to demonstrate their
capabilities to comply with Design-led Manufacturing Criteria at the time of scrutiny of the application. If any product fails to satisfy
some of the Design-led Manufacturing criteria at a later stage, then they will be eligible for incentives at normal rates as applicable to the
PLI Scheme for those particular products. Can An Existing PLI Beneficiary Company Apply For Revision Of Committed Investment /
Net Incremental Sales Forecast In The Existing Approval Under The Scheme?The existing PLI beneficiary company which intends to
revise the committed investment / net incremental sales forecast has the option to apply as a fresh Applicant. On selection, the company
has to exit from the existing approval and forego their investment made during Financial Year 2021-22. Can An Existing PLI
Beneficiary Company Claim Incentive For FY2021-22 With The Achieved Investment / Net Sales Figures And Also Apply For New
Application Under Design-Led PLI For The Remaining 4 Years With A Higher Committed Investment / Net Incremental Sales Forecast?
The existing company can claim the incentive for FY2021-22 with the achieved investment / net sales figures under normal rates of PLI
Scheme and higher rates for products for the rest of the 4 years only complying with Design-led Manufacturing criteria but within the
year-wise incentive amount approved for the company subject to submission of declaration for products which satisfy the Design-led
criteria during the current application window. However, if these companies want to revise the committed investments/net sales; they
have to apply as a fresh company and on selection have to forego investment as per the amended Guidelines. The existing company
cannot revise committed investment / net incremental sales forecast without participation and selection under the window provided
now.Can An Existing PLI Beneficiary Company Choose 5 Consecutive Years Of Incentives At The End Of The Scheme Tenure?The
choice of 5 consecutive years of incentives has to be made in the current application window i.e. open till 25.08.2022. What Is
Production Linked Incentive (PLI) Scheme For Telecom And Networking Products Manufacturing In India?The Production Linked
Incentive (PLI) Scheme would promote Telecom and Networking Products manufacturing in India and accordingly, a financial incentive
is proposed to boost domestic manufacturing and attract investments in the target segments of telecom and networking products in order
to encourage â€œMake in Indiaâ€​. The Scheme is also expected to boost export of telecom and networking products â€œMade in
Indiaâ€​.What Is The Scheme Outlay And Tenure?The Scheme will be implemented within the overall financial limits of Rs 12,195
Crores only (Rupees Twelve Thousand One Hundred and Ninety-Five Crore only) over a period of 5 years. The scheme is effective from
1st April, 2022. The investment will be permitted to be made in made in India from 01.04.2022 onwards and up to Financial Year (FY)
2025-2026 only, subject to qualifying incremental annual thresholds. The support under the Scheme shall be provided for a period of five
(5) years, i.e. from FY 2022-23 to FY 2026-27.Who Are The Eligible Applicants To Apply Under The PLI Scheme For Telecom And
Networking Products Manufacturing In India?Applicant for the purpose of the Scheme is a company registered in India under the
Companies Act 2013, proposing to manufacture goods covered under Scheme Target Segments as defined hereinafter, and making an
application seeking approval under the Scheme. The Applicant can set up new or use existing manufacturing facility(ies) to manufacture
goods covered under the Scheme Target Segments. The aforesaid manufacturing can be carried out at one or more locations in India,
which will however be prior intimated to Department of Telecommunications (DoT). The Applicants who are declared as Non-
Performing Asset (NPA) as per RBI guidelines or wilful defaulter or reported as fraud by any bank, financial institution or non-banking
financial company etc. would be considered as ineligible. Further, there should not be any insolvency proceedings admitted against the
Applicant in the National Company Law Tribunal (NCLT), etc.What Are The Different Categories Of Applicants Who Can Apply Under
The PLI Scheme For Telecom And Networking Products?Application can be made under following two categories: a)MSME:
Companies registered as Micro, Small & Medium Enterprises (MSME) with the Ministry of MSME, Government of India. b) Non
MSMEs: Companies which do not fall under the MSME category will be classified as Non MSMEs. The Non MSMEs category shall be
further sub-divided in two categories: i. Domestic Company: As per the FDI Policy 2020, a company is considered as â€˜Ownedâ€™ by
resident Indian citizens if more than 50% of the capital in it is beneficially owned by resident Indian citizens and / or Indian companies,
which are ultimately â€œownedâ€​ and â€œcontrolledâ€​ by resident Indian citizens. Such a company will be defined as â€œDomestic
Companyâ€​ for the purpose of these guidelines. ii. Global Company: Global Company means a company which does not qualify as
Domestic Company as defined above and is having business in one or more than one country either by itself or including its Group
Companies (Refer FAQ No.8).What Will Be The Eligibility Criteria For The Applicants Under The PLI Scheme For Telecom And
Networking Products Manufacturing In India?Applicants have to satisfy the following criteria to be eligible under the PLI Scheme for
Telecom and Networking Products manufacturing in India: a) Minimum Global Revenue defined as per the Scheme Guidelines for
Global, Domestic and MSME Companies. b) Eligibility will be subject to achievement of a minimum threshold of cumulative
incremental investment over a period of four years and incremental sales of manufactured goods (covered under Scheme Target
Segments) net of taxes (as distinct from traded goods) over the Base Year (FY2019-2020). The cumulative investment can be made at
one go, subject to annual cumulative threshold as prescribed for four years being met. An applicant is expected to meet all the minimum
threshold conditions to be eligible for disbursement of incentive. The Company/entity may invest in single or multiple eligible products
to meet minimum incremental investment and sales threshold. c) There will be a minimum investment threshold of â‚¹ 10 Crores for
MSME an â‚¹ 100 Crores for others. Land and building cost will not be counted as investment. Total number of beneficiaries will be
limited owing to the fixed ceiling of the budgetary outlay.What Is The Eligibility Qualification Criteria For Global Revenue As Per The
PLI Scheme For Telecom And Networking Products?The following will be the eligibility qualification criteria for Global Revenue as per
the PLI Scheme for Telecom and Networking Products: a) MSMEs: Global Revenue should be more than Rs. 10 Crore in the base year
(2019-20). b) Domestic Companies: Global Revenue should be more than Rs.250 Crore in the base year. c) Global Companies: Global
Revenue should be more than Rs. 10,000 Crore in the base year. In case of Group companies of Applicant, whose revenues for the Base
year have not been consolidated in INR, the revenue in the respective currency shall be converted to INR at an average of currency
exchange rates as on April 01, 2019 and March 31, 2020.Whether Global Revenue Includes Taxes?Yes, the global revenue is
Consolidated Gross Revenue.Whether Global Revenue Includes Revenue From Contract Manufacturing?Yes, the Global revenue
includes all the revenues in the electronics, IT/ITES including software, telecom and networking segments. What Is Group Company
With Reference To The Global Revenue As Defined In The PLI Scheme For Telecom And Networking Products?As per the Scheme
Guidelines, Group Company means two or more enterprises which, directly or indirectly, are in a position to: a) Exercise twenty-six
percent or more of voting rights in other enterprise; or b) Appoint more than fifty percent of members of board of directors in the other
enterprise. My Group Company Is Located In A Country Where The FY Starts In Jan 2021. How To Provide You The Gross Revenue?In
case any group company of the applicant is located in a country where FY doesnâ€™t match with FY as in India, they would provide
revenues of the company for the period of the base year, instead of their FY.How To Convert The Global Revenue In Any Foreign
Currency To INR While Applying?In case of Group companies of Applicant, whose revenues for the Base year have not been
consolidated in INR, the revenue in the respective currency shall be converted to INR at an average of currency exchange rates as on
April 01, 2019 and March 31, 2020.What Are The Scheme Target Segments?The Scheme Target Segments consists of Specified
Telecom and Networking Products which will be allowed to be manufactured under this PLI Scheme. The list of products have been
classified as mentioned below: a) Core Transmission Equipment. b) 4G/5G, Next Generation Radio Access Network and Wireless
Equipment. c) Access & Customer Premises Equipment (CPE), Internet of Things (IoT) Access Devices and Other Wireless Equipment.
d) Enterprise equipment: Switches, Routers. New Product have been added vide DoT Office Memorandum dated 20-06-2022. For
complete list of the Specified Telecom & Networking Products please visit our website.Whether Companies Would Need To Predict All
Products Which It Will Manufacture In Future And Take Approval In The Application, Or The Products Can Be Added At A Later
Stage. For E.G. If A Company Files Application With 5 Categories Of Products. However, In Future It Manufactures 7 Products.
Whether All The Products Need To Be Added In The Application At This Stage Itself.Yes, the claim can only be filed for the products
covered under the approval letter issued to the Applicant company. New product cannot be added at a later stage. What Will Be The
Baseline For Investment & Net Sales Of Goods Manufactured In India?Baseline for investment in the Scheme will be as on 31/03/2022.
Base Year for Net Sales of Goods Manufactured in India (covered under the Scheme Target Segment) will be from 01.04.2019 to
31.03.2020 What Are The Eligible Categories Of Investment As Per The PLI Scheme For Telecom And Networking Products?
Investment under the PLI Scheme for Telecom and Networking Products can be made in the Scheme Target Segments, capitalized in the
books of accounts of the Applicants under the following categories: a) Plant, Machinery, Equipment and Associated Utilities. b) Research
and Development. c) Transfer of Technology (ToT) Agreements.Will There Be Any Upper Limit On The Eligible Categories Of
Investment As Per The PLI Scheme For Telecom And Networking Products?As per the amendments to the Scheme Guidelines dated 20-
06-2022, the limits on the eligible investment made in Research & Development and the Transfer of Technology Agreements have been
removed.Are Taxes And Duties Included In The Expenditure That Is Considered Towards Investment In The Scheme?All non-creditable
taxes and duties would be included towards the expenditure incurred on eligible category of investment as per the PLI Scheme for
Telecom and Networking Products.Will The Expenditure Incurred On Land And Building Be Considered Under Eligible Category Of
Investment As Per The PLI Scheme For Telecom And Networking Products?The expenditure incurred on land and building (including
factory building / construction) required for the project / unit is not covered under the Scheme and, therefore, will not be considered for
determining eligibility under the Scheme. However, expenditure incurred on civil works associated with installation and erection of plant,
machinery, equipment, and associated utilities shall be eligible.In Case There Is Any Plant, Machinery Or Equipment Which Is Common
For Target Product And Other Product, The Cost Of Such Equipment Will Be Regarded As Eligible Investment.Yes. The usage of such
machinery for manufacturing of other products also is not prohibited. However, the Applicant must submit a declaration about usage of
machinery for each year during the period that such Applicant is claiming incentive under the Scheme.Base Line Turnover Is Required
To Be Provided For Each Product. Whether Incremental Turnover Will Be Considered Product Wise Or For Company As Whole. For
Example, If A Company Is Manufacturing 5 Products At Present And In Future It Manufactures Only 3 Whether Base Line For Only
Such 3 Products Will Be Considered To Calculate Incremental Turnover Or All 5 Products.As per clause 9.1 of the Scheme Guidelines,
the baseline will be considered for all the products covered in the Scheme Target Segments (as per Annexure 1 of the scheme guidelines)
net of taxes. For Example, if in the base year, the company is manufacturing 5 products under the Scheme Target Segment, the baseline
will be considered for all 5 products for calculating incremental turnover, irrespective of whether the company produces only 3 of those
5 products in the claim year. If Company Adds Any Additional Product Which It Is Not Manufacturing Currently And Baseline For
Such Product Is Zero. Whether All Turnover Pertaining To Said Product Will Be Considered As Incremental.Yes, all turnover pertaining
to the additional product will be considered for calculation of net incremental sales, provided the product is covered under the Scheme
Target Segment and mentioned in the approval letter issued to the Applicant company by the PMA (as per clause 10.6.3)Can A
Company Claim Incentive For The Products Under Scheme Target Segment Manufactured At Location Other Than Those Mentioned In
Application Form?The manufacturing can be carried out at one or more locations in India, which is however to be prior intimated to DoT
i.e. before commencement of manufacturing activity at the new location. If A Company Is MSME During The Time Of Application.
However, During The Duration Of The Scheme, The Company Moves Out Of MSME Category, Can It Still Claim Incentives Under
MSME Segment.Yes, as per clause 3.8, the status of Applicants as MSMEs or Non-MSMEs will be determined at the time of selection
only and it will remain so during the entire duration of the Scheme.What Will Be The Application Fee For Applications Submitted Under
The PLI Scheme For Telecom And Networking Products?A non-refundable application fee of INR 1,00,000 would be payable for each
application. The application fee, as specified, would be accepted electronically only. The account details are as under: Bank Name :
Indian Overseas Bank: Beneficiary Name: PAOHQDOTNEWDELHI Account No.: 256502000001000 Branch Sanchar Bhawan Branch,
20 Ashoka Road, New Delhi IFSC Code IOBA0002565Sources And ReferencesTelecom PLI SchemeOkWas this helpful?News and
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for schemesCancelIt seems you have already initiated your application
earlier.To know more please visit CancelApply NowMinistry Of CommunicationProduction Linked Incentive Scheme
(pli) For Promoting Telecom & Networking Products Manufacturing In IndiaElectronic ManufacturingMake In IndiaNetworking
ProductsPLIProduction Linked Incentive SchemeTelecom EquipmentsDetailsBenefitsEligibilityApplication ProcessDocuments
RequiredFrequently Asked QuestionsWith the objective to boost domestic manufacturing, investments and export in the telecom and
networking products Department of Telecommunications (DoT) notified the â€œProduction Linked Incentive (PLI) Schemeâ€​ on 24th
February 2021.The PLI Scheme will be implemented within the overall financial limits of â‚¹ 12,195 Crores only (Rupees Twelve
Thousand One Hundred and Ninety-Five Crore only) for implementation of the Scheme over a period of 5 years. For MSME category,
financial allocation will be â‚¹2500 Crores. Small Industries Development Bank of India (SIDBI) has been appointed as the Project
Management Agency (PMA) for the PLI scheme.The scheme is effective from 1st April, 2021. Investment made by successful
applicants in India from 1 st April, 2021 onwards and up to Financial Year (FY) 2024-2025 shall be eligible, subject to qualifying
incremental annual thresholds. The support under the Scheme shall be provided for a period of five (5) years, i.e. between FY 2021-22
and FY 2026-27.Support under the Scheme will be provided to companies who will manufacture specified telecom and networking
products in following 4 product categories in India :1. Core transmission Equipment2. 4G/5G, Next Generation RAN and Wireless
Equipment3. Access & CPE, IoT Access Devices and Other Wireless Equipment4. Enterprise Equipment: Switch and Routerï»¿OkWas
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