The Union Cabinet today approved the Production Linked Incentive (PLI) scheme for telecom and networking products worth Rs 12,195 crore.
Briefing the media after a Cabinet meeting, Communications Minister Ravi Shankar Prasad said that the Centre is positioning India as a global hub for manufacturing and has created a conducive environment for ease of doing business.
He said that the government expects that the scheme will lead to enhanced production of more than Rs 2,44,200 crores of telecom equipment in the country, export worth Rs 1,95,360 crores, create 40,000 new jobs and generate around Rs 17,000 crore worth of tax revenue in the coming five years.
The minister also said that the government will soon come up with a PLI scheme to encourage the production of laptops and tablet PCs in the country.
The eligibility for the scheme will be subject to achievement of a minimum threshold of cumulative incremental investment and incremental sales of manufactured goods net of taxes, the government release said. Financial Year 2019-20 shall be treated as the Base Year for computation of cumulative incremental sales of manufactured goods net of taxes, it added.
The scheme will be operational from April 1, 2021.