Incentive Scheme – Telecom Sector

“Global Revenue” to be considered instead of “Global Manufacturing Revenue” as Selection Criteria

• To boost domestic manufacturing and attract investments
• To boost export of telecom and networking products
• ₹12,195 Crores outlay is targeted under this scheme

The incentive is given

• If minimum incremental sale target is achieved, and
• Is subject to the maximum limit as per ceiling.
• These incentive rates are independent for every tax period. In case target is not met for any tax period, incentive would not be given only for that period.

• Investment to be made in cumulative 4 years. Baseline for investment is 31.03.2021.
  
  • ₹10 Crores by MSME and ₹100 Crores by others
  • Date of tax invoice would be considered as date of investment
  • Cost not included
    
    • Land and building cost is not counted for the purposes of investment
    • Consumable and raw material used for manufacturing
  • Cost included
    
    • Plant, machinery, equipment and associated utility
    • Research & Development
    • Transfer of Technology Agreements
• Incremental slab of sales of manufactured goods over a period of 5 years
• Schedule of investment and incremental sales

  Year	Cumulative investment	Minimum incremental sales	Maximum eligible sales – for ceiling over maximum amount of incentive
  1	Greater than or equal to 20% of X	3*( 20% of X)	20*( 20% of X)
  2	Greater than or equal to 40% of X	3*( 40% of X)	20*( 40% of X)
  3	Greater than or equal to 70% of X	3*( 70% of X)	20*( 70% of X)
  4	Greater than or equal to X	3*X	20*X
  5		3*X	20*X

  Note: X is the total committed amount of investment

• Submit application to Project Management Agency (PMA)/DoT through portal www.pli-telecom.udyamimitra.in 
• Non-refundable application fee of ₹1,00,000/- to be paid electronically as per details given below:
  
  • Bank Name: Indian Overseas Bank
  • Beneficiary Name: PAOHQDOTNEWDELHI
  • Account No.: 256502000001000
  • Branch: Sanchar Bhawan Branch, 20 Ashoka Road, New Delhi
  • IFSC Code: IOBA0002565 
• Application is to be submitted by 03rd July 2021.
• PMA acknowledges and approves the application
• Certificate of investment made in India as on 31.03.2021 is required from Statutory Auditor

• 10 eligible applications each in MSME and non-MSME to be selected. In Non-MSME, atleast 3 applicants will be eligible domestic companies.
• Priority given to those applicants who commits higher amount of committed cumulative incremental investment.
• Higher ‘Global Manufacturing Revenue’ is also to be considered.

• Selected applicant has to be submit claim within 9 months from the end of financial year.
• Reconciliation statement for incremental sales and investment is also to be submitted within 15 days of 31st December. The credit notes issued till 31st December are to be considered.
• The PMA shall process the claim and make appropriate recommendations of the competent authority
• Disbursement would be in form of direct bank transfer through PFMS

PLI Scheme for Telecom Sector