PLI Scheme for Telecom and Networking Products Manufacturing

What is the PLI Scheme for Telecom and Networking Products?

The Production Linked Incentive (PLI) Scheme for Promoting Telecom and Networking Products Manufacturing in India is a scheme of the Department of Telecommunications (DoT), Ministry of Communications, Government of India. According to DoT, the scheme was approved in 2021 with a budgetary outlay of about Rs 12,195 crore to boost domestic manufacturing of telecom and networking equipment and reduce India's dependence on imports in a strategically important sector.

The scheme pays an incentive on the incremental sales of eligible India-manufactured products, that is, sales above a base-year level: to companies that make a committed investment in manufacturing. It is a classic production-linked incentive: the government rewards additional domestic production and sales rather than paying an upfront capital subsidy. Because it is an industry incentive, there is no citizen application and no individual benefit.

Products the scheme targets

• Core transmission equipment.
• 4G/5G and next-generation radio access network and wireless equipment.
• Access equipment and customer premises equipment.
• Enterprise equipment such as switches and routers.
• Other notified telecom and networking products.

A design-led manufacturing element was added to encourage products designed as well as made in India, carrying an additional incentive over the base rates.

Who is eligible for the telecom PLI scheme?

A company can apply if:

• It is a company registered in India manufacturing eligible telecom and networking products.
• It commits the minimum investment — around Rs 10 crore for MSMEs and around Rs 100 crore for non-MSME applicants, over the scheme period, counted on plant, machinery and eligible items (land and building are excluded).
• It can demonstrate incremental net sales of eligible manufactured goods over the base year.
• It meets the other conditions in the DoT scheme guidelines, including the application within the notified window.

Who cannot apply: Individuals, students, sole proprietors seeking a personal grant, and the general public cannot apply. This is not a personal benefit. Traders or assemblers who do not genuinely manufacture eligible products, and companies that fail to meet the investment threshold or the incremental-sales condition, are not eligible for the incentive. A citizen looking for a personal subsidy will find nothing to claim here; the only route into the scheme is as a qualifying manufacturing company.

What documents are required?

How to apply for the telecom PLI scheme

The scheme is applied for by companies, online, through the process notified by DoT and its project management agency. There is no walk-in or individual application.

1. Check the DoT portal (dot.gov.in) for the PLI scheme guidelines and the status of the application window, which is time-bound.
2. Confirm that the company manufactures eligible products and can meet the applicable investment threshold (Rs 10 crore for MSMEs, Rs 100 crore for others) over the scheme period.
3. Register and file the online application with the DoT-appointed project management agency, submitting company, investment, product and financial details.
4. Provide audited financials and the base-year data so eligible incremental sales can be measured.
5. On selection, meet the committed investment and production targets, and file periodic claims with supporting records to draw the incentive.

Because the application windows open and close on fixed dates, a company must act within the notified period; the scheme is not a standing, always-open programme.

How much does the scheme provide?

The scheme pays incentives as a percentage of eligible incremental sales, at rates in the range of roughly 4% to 7% across the scheme years, with a small additional edge for MSMEs and an added incentive for the design-led manufacturing category. The overall programme is capped by the approved outlay of about Rs 12,195 crore, and each selected company's payout depends on its incremental sales against committed investment. Because the exact year-wise rates, ceilings per company and definitions are set in the DoT scheme guidelines and notified amendments, these should be read from the current guideline document on the DoT portal rather than assumed.

Help and where to verify

• Official portal: dot.gov.in, under the PLI scheme section.
• The scheme does not run a citizen helpline; company queries go through the DoT project management agency named in the scheme guidelines.

This is an industry incentive with time-bound application windows and company-level eligibility. Individuals cannot apply for a personal benefit. Companies should treat the current DoT PLI guidelines and notifications as the authoritative source for rates, thresholds, product lists and the open/closed status of the scheme.