Production Linked Incentive Scheme for Promoting Telecom and Networking Products Manufacturing in India

Production Linked Incentive Scheme for Promoting Telecom and Networking Products Manufacturing in India helps domestic manufacturing grow, brings in global investment, and raises exports of telecom and networking equipment. The Department of Telecommunications (DoT) runs this scheme with a total outlay of ₹12,195 Crores spread over five years. It supports companies making telecom and networking products in India and strengthens the Make in India push in this sector.

The scheme is open for eligible manufacturers, and the government has also updated its rules to make it more useful. As on 31st January 2025, approved companies had invested ₹4,081 Crores and generated sales worth ₹78,672 Crores, including exports of about ₹14,963 Crores. The scheme has also created around 26,351 jobs in the telecom manufacturing industry.

Production Linked Incentive Scheme for Telecom and Networking Products - Introduction

Production Linked Incentive Scheme for Promoting Telecom and Networking Products Manufacturing in India encourages domestic production, raises investment, and expands exports in the telecom and networking sector. The Department of Telecommunications (DoT) notified this scheme on 24th February 2021 with a total financial limit of ₹12,195 Crores covering a five-year implementation period.

For the MSME category, a separate allocation of ₹2,500 Crores is set aside. Small Industries Development Bank of India (SIDBI) works as the project management agency for this program. The scheme began on 1st April 2021, and benefits are available for five years, from the financial year 2021-22 through 2026-27.

The scheme now covers 33 telecom and networking products, and companies can claim incentives on the net incremental sales of these products. Incentive rates range from 4% to 7% depending on the product and the year of claim.

In March 2025, the government amended the scheme guidelines to bring in several changes. An additional 1% incentive is now available for products designed, developed, and manufactured in India, which supports design-led manufacturing. Eleven new products were added to the approved list based on industry needs. Companies can now add one or more products from the approved list at any time during the scheme tenure, and they can apply for incentive claims on a quarterly basis.

Key Information

Benefits

This scheme gives cash incentives based on investment thresholds and growth in net incremental sales over the base year. An additional incentive of 1% is available for products that qualify under design-led manufacturing, meaning products designed, developed, and manufactured in India.

Incentive rates are worked out every year based on the increase in net sales over the base year. For example, a company like Aravind Electronics (an MSME) that meets the investment criteria can calculate its incentive using the year-wise percentage set by the notification. The project management agency checks the detailed incentive slabs using the audit reports submitted by the company.

Companies can now claim incentives on a quarterly basis under the amended guidelines, which makes the payment process faster and more flexible. They can also add one or more products from the approved list at any time during the scheme tenure.

Eligibility

To qualify for this support, a company should manufacture goods within the identified target segments in India. Any foreign investment must follow the prevailing FDI policy of 2020.

Eligibility depends on global manufacturing revenue criteria:

A company should meet the total incremental investment and sales targets each year to receive payments. If a company fails to meet targets in one year, it does not lose eligibility for future years, but it will not get incentives for that non-compliant year. A company should also make sure it is not claiming double benefits for the same product under different central schemes.

Application Process

Online

Apply Link: Apply via official DoT scheme page

STEP 1 - Visit the official scheme page of the Department of Telecommunications and read the latest guidelines and notifications carefully before applying.

STEP 2 - Register the company on the scheme implementation portal using the official link. After submitting the details, a verification link is sent to the nodal officer's email.

STEP 3 - Once the project management agency verifies the records, a confirmation is received within two working days. The nodal officer should then sign in with a registered mobile number and OTP to complete the application.

STEP 4 - Pay the non-refundable application fee of ₹1 Lakh through RTGS or NEFT to the bank account of PAOHQDOTNEWDELHI at the Indian Overseas Bank (IFSC: IOBA0002565). Any deficiencies found during the initial 15-day scrutiny period must be fixed within 15 working days to move ahead with the application.

Documents

These documents are required while applying for the scheme:

• PAN card of the company.
• Authority letter naming the nodal officer.
• Certificate of incorporation.

All documents should be scanned clearly before uploading them to the implementation portal.

References

Official PLI Scheme page on Department of Telecommunications

PIB press release on PLI scheme for telecom and networking products

FAQ's

Can an existing PLI beneficiary company claim additional incentives for design-led manufacturing?

Yes. Existing beneficiaries and new applicants can claim an additional 1% incentive for products designed, developed, and manufactured in India. A declaration for specific products must be given during the application window to qualify.

How does the scheme handle a mix of compliant and non-compliant products?

If a company makes a mix of products, those meeting the design-led criteria get the higher incentive rate, while others are treated under normal rates. The company should show its ability to meet these criteria during the application scrutiny.

Can companies claim incentives on a quarterly basis?

Yes. Under the amended guidelines, companies can apply for incentive claims on a quarterly basis instead of waiting for a full year. This change was introduced in March 2025 to speed up payments.

What happens if my investment or sales forecast changes?

If a company wants to revise its investment or sales forecasts, it should apply as a fresh applicant and give up any previous approvals and investments made during the earlier period.

Are land and building costs considered as eligible investments?

No, spending on land and building is not counted. However, civil works directly linked to the installation of plant and machinery are counted toward investment eligibility.

Is the application fee refundable if my application is rejected?

No, the application fee of ₹1 Lakh is strictly non-refundable.