Emerging Laws

Guidelines for Production Linked Incentive Scheme (PLI) for Promoting Telecom & Networking Products Manufacturing in India

Key Outliners

Specified Telecom and Networking Products

  1. Core Transmission Equipment – Dense Wavelength Division Multiplexing (DWDM), Optical Transport Network (OTN), Multi Service Provisioning Platform (MSPP), Synchronous Digital Hierarchy (SDH), Packet Transport Network (PTN)/ Multi-Protocol Label Switching (MPLS), Gigabit Passive Optical Networks (GPON)/ Next Generation- Passive Optical Network (NG-PON) Optical Line Terminal (OLT), Digital Microwave Radio
  2. 4G/5G, Next Generation Radio Access Network and Wireless Equipment – 4G/ Long Term Evolution (LTE)Radio Access Network (RAN) Base Station & Core Equipment; 5G RAN Base Station & Core Equipment; Edge and Enterprise Equipment; Wireless Telecommunication Equipment in Access and Backhaul
  3. Access & Customer Premises Equipment (CPE), IoT Access Devices and Other wireless Equipment – Unified Communications Platforms, IP Multimedia Subsystem, Soft Switch, GPON Optical Network Terminal (ONT), Wireless Fidelity (Wi-Fi) Access Point and Controller, LTE CPE, 5G CPE, Short Range Devices and Associated Electronics in new technologies like 4G/5G/Fibre To The Home (FTTH) etc.
  4. Enterprise equipment: Switches, Routers – Switches, Routers, Internet protocol (IP) and Packet Switching and Routing Apparatus
  5. Any Other Product- As decided by the EGoS

Eligibility

  1. Global companies: Global Manufacturing Revenue should be more than Rs. 10,000 Crore in the base year.
  2. Domestic companies: Global Manufacturing Revenue should be more than Rs. 250 Crore in the base year.
  3. MSMEs: Global Manufacturing Revenue should be more than Rs. 10 Crore in the base year.

Eligibility threshold criteria

  1. MSMEs- Minimum Threshold of Investment Rs. 10 Crores
  2. Other than MSMEs- Minimum Threshold of Investment Rs. 100 Crores

Guidelines for Production Linked Incentive Scheme (PLI) for Promoting Telecom & Networking Products Manufacturing in India – Click to download the guidelines dated 3rd June, 2021

Investment in Plant and Machinery for Micro, Small and Medium Enterprises Development Act, 2006

Ministry of Small Scale Industries vide notification dated 5th October, 2006 specified the items, the cost of which shall be excluded while calculating the investment in plant and machinery: –

  1. Equipment such as tools, jigs, dies, moulds, and spare parts for maintenance and the cost of consumable stores;
  2. Installation of plant and machinery;
  3. Research and development equipment and population control equipment;
  4. Power generator set and extra transformer installed by the enterprise as per the regulations of the state electricity board;
  5. Bank charges and service charges paid to the National Small Industries Corporation or the State Small Industries Corporation;
  6. Procurement or installation of cables, wires, bus bars, electrical control panels (not mounted on individual machines), oil circuit breakers or miniature circuit breaker which are necessarily to be used for providing electrical power to the plant and machinery or for safety measures;
  7. Gas producer plant;
  8. Transportation charges (excluding sales-tax or value added tax and excise duty) for indigenous machinery from the place of their manufacture to the site of the enterprise;
  9. Charge paid for technical know-how for erection of plant and machinery;
  10. Such storage tanks which stores raw materials and finished products only and are not linked with the manufacturing process; and
  11. Fire fighting equipment

While calculating the investment in plant and machinery, the original price thereof, irrespective of whether the plant and machinery are new or second hand, shall be taken into account provided that in case of imported machinery, the following shall be included in calculating the value, namely:

  1. Import duty (excluding miscellaneous expenses such as transportation from the port to the site of the factory, demurrage paid at the port);
  2. Shipping charges
  3. Customs clearance charges; and
  4. Sales tax and value added tax

Source:- Investment under MSMED Act 2006

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