Table of Contents
What has happened?
- The government has shortlisted 33 companies that will be awarded Rs 12,195-crore benefits under the production-linked-incentive (PLI) scheme for telecom and networking equipment.
- The scheme has received 36 applications, three of which are being rejected.
- The winners who would be notified soon have committed Rs 3,455 crore as proposed investments.
- Applications of Tech Mahindra, Sterlite Technologies and Kenstel Networks are likely to be rejected on technical grounds.
Global companies
- Of the eight global companies that have applied, seven applicants have made the cut:
- Taiwanese Foxconn (proposed investment Rs 208 crore), Rising Stars Hi-Tech (Rs 125 crore), Finnish Nokia Solutions
- (Rs 125 crore), American makers Flextronics (Rs 102 crore), Jabil Circuit (Rs 176 crore), CommScope (Rs 209 crore), and Sanmina-SCI (Rs 110 crore).
Domestic companies
- On the domestic side, 26 companies have made the cut, nine large ones, and 17 in the MSME
- The Indian companies include Akashastha Technologies (proposed investment Rs 593 crore), VVDN Technologies (Rs 400 crore), Neolync Tele Communications (Rs 188 crore), Dixon Electro Appliances (180 crore), ITI (Rs 120 crore), Tejas Networks (111 crore), GDN Enterprises (Rs 46 crore) and STL Networks (Rs 49 crore).
rejections
- The application of Sterlite Technologies filed under the global companies category is being rejected for falling short of the minimum threshold criteria of Rs 10,000-crore revenue.
- On the domestic side, the application of Tech Mahindra is being rejected as it is not engaged in manufacturing of telecom equipment, but only in software.
- Kenstel Networks, which applied under MSME, has certified its revenues at Rs 6.4 crore, which is less than the stipulated Rs 10 crore threshold mandated for the category.
About the PLI scheme for Telecom sector
- Following the launch of a production-linked incentive (PLI) scheme
- for manufacturing, India this year launched the scheme for telecommunications (telecom) and networking products, with an outlay of Rs 12,195 crore over five years.
- The Cabinet approved PLI for manufacturing telecom equipment, including core transmission equipment, 4G/5G next-generation radio access network and wireless equipment,
- Access and customer premises equipment, Internet of Things-access devices, other wireless equipment, and enterprise equipment like switches, routers, etc.
Higher incentive for MSME
- The scheme also has higher proposed incentives for micro, small and medium enterprises (MSMEs). For MSMEs, the government has proposed 1 per cent higher incentive in the first three years.
- The minimum investment threshold for MSMEs has been kept at Rs 10 crore; for others, at Rs 100 crore.
- An investor who qualifies for the scheme will be incentivised up to 20 times the minimum investment threshold, enabling them to utilise their unused capacity, said the government statement.
- The PLI scheme for mobile manufacturing was set in motion, with 16 project approvals last July.
- According to internal estimates, the scheme, if successful, has the potential to raise local value addition for feature phones to 70-80% and for smartphones to over 35%.
conclusion
- Telecom Minister Ravi Shankar Prasad said while launching the scheme for telecom equipment that,
- The Centre was positioning India as a global hub for manufacturing and had created a conducive environment for the ease of doing business.
Q) Which of the following is not correct regarding Startup India Seed Fund Scheme?
- Provide funding to Startup at initial stage
- The Startup must not be more than 2 years old
- The scheme is applicable for 4 years
- Foreign controlled Startups are also eligible
Latest Burning Issues | Free PDF
WhatsApp