PLI Telecom & Networking — 4-7% Incentive for Manufacturers
Production Linked Incentive (PLI) scheme by the Department of Telecommunications offering 4-7% incentives on incremental sales of telecom and networking products manufactured in India, with an extra 1% for Design-led Manufacturing.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Department of Telecommunications (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Production Linked Incentive (PLI) Scheme for Promoting Telecom & Networking Products Manufacturing in India is an initiative by the Department of Telecommunications (DoT) to transform India into a global hub for telecom and networking product manufacturing. Notified on 24th February 2021, the scheme aims to boost domestic manufacturing, attract substantial investments, and enhance exports.
The scheme has a total outlay of ₹12,195 Crores over five years. Of this, ₹2500 Crores is earmarked for MSMEs, with a cap of ₹1000 Crores on MSME incentives. The Small Industries Development Bank of India (SIDBI) serves as the Project Management Agency (PMA), overseeing implementation and monitoring.
The scheme is effective from 1st April 2021 and supports investments made between this date and FY 2024-2025. Incentives are provided for five years, from FY 2021-22 to FY 2026-27, incentivizing companies to reduce import dependence and strengthen local production.
Highlights
- Incentives of 4-7% on incremental sales for 5 years
- Support period: FY 2021-22 to FY 2026-27
- Dedicated allocations for MSMEs (₹2500 Crore pool, ₹1000 Crore cap)
- Additional 1% incentive for Design-led Manufacturing
- Eligibility based on base-year revenue thresholds
- Investments up to FY 2024-2025 and possible FY 2025-26, but incentive ends FY2026-27
Who can apply
Who can apply: Companies registered in India that manufacture specified telecom and networking products. Both domestic and global companies, including MSMEs, may apply.
Revenue criteria (base year): Applicants must meet Global Manufacturing Revenue thresholds:
- Global companies: More than ₹10,000 Crore
- Domestic companies: More than ₹250 Crore
- MSMEs: More than ₹10 Crore
Foreign (non-resident) investment must comply with the FDI Policy 2020.
Companies must commit to minimum incremental investments (₹10 Crore for MSMEs and ₹100 Crore for non-MSMEs) and achieve incremental sales targets over the base year. Failure to meet annual thresholds results in ineligibility for that year's incentive, with no carryover.
Applicants cannot avail benefits under other Central Government PLI schemes for the same product, but state/UT schemes do not affect eligibility. The status (MSME/non-MSME) is fixed for the scheme duration.
PLI Telecom & Networking — 4-7% Incentive for Manufacturers is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
PLI Telecom & Networking — 4-7% Incentive for Manufacturers accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
The scheme provides Production Linked Incentives of 4% to 7% on incremental net sales of eligible products for five years, from FY 2021-22 to FY 2026-27.
An additional 1% incentive is granted for products qualifying under Design-led Manufacturing.
To receive these incentives, companies must meet minimum cumulative incremental investment thresholds (₹10 Crore for MSMEs, ₹100 Crore for others) and achieve specified incremental sales targets.
The overall fund outlay is ₹12,195 Crore, with a dedicated ₹2500 Crore for MSMEs, capped at ₹1000 Crore.
About the provider
PLI Telecom & Networking — 4-7% Incentive for Manufacturers is offered by Department of Telecommunications, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.
How to apply
Applications are submitted on the official portal. Confirm the current deadline and document checklist there before you start.
Selection process
Applications are initially scrutinized by the Project Management Agency (PMA) within 15 working days from the last date of submission. The PMA checks completeness of information, documents, certificates, and proof of application fee payment.
If deficiencies are found, the applicant is notified and must rectify them within 15 working days. After successful scrutiny, the PMA recommends the list of shortlisted eligible applications to the Department of Telecommunications (DoT) for final approval by the competent authority.
Documents you’ll need
Before you apply to PLI Telecom & Networking — 4-7% Incentive for Manufacturers, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Frequently asked questions
What is the primary objective of the PLI Scheme for Telecom & Networking Products?
The scheme aims to boost domestic manufacturing, investments, and exports in telecom and networking products in India, promoting self-reliance and reducing imports.
Who is eligible to apply?
Companies manufacturing specified telecom and networking products in India, including domestic companies, global companies, and MSMEs, are eligible. They must meet base-year revenue thresholds: ₹10,000 Crore (global), ₹250 Crore (domestic), and ₹10 Crore (MSMEs).
How much funding is offered?
The scheme offers production-linked incentives of 4% to 7% on incremental net sales for five years, with an additional 1% for design-led products. There is also a total outlay of ₹12,195 Crore for the scheme.
Is there a deadline for applying?
The scheme is rolling, but investments made between 1st April 2021 and FY 2024-25 are eligible for support. The incentive period extends to FY 2026-27.
Does the scheme take equity in my company?
No, this is a subsidy or incentive scheme and does not take equity in your company.
What are the investment requirements?
Applicants must commit to a minimum cumulative incremental investment over four years: ₹10 Crore for MSMEs and ₹100 Crore for other companies.
Can I avail benefits from other PLI schemes simultaneously?
No. If you have applied for or availed benefits under any other Central Government PLI scheme for the same product, you cannot avail benefits under this scheme. However, state/UT schemes do not impact eligibility.
Who is the Project Management Agency for this scheme?
SIDBI (Small Industries Development Bank of India) is the Project Management Agency responsible for implementation and oversight.
What documents are typically required during application?
The application requires product specifications, production milestones, financials, and details to verify eligibility (e.g., revenue and investment plans). Specific requirements are detailed on the portal: https://pli-telecom.udyamimitra.in.
Is DPIIT recognition required for PLI Telecom & Networking — 4-7% Incentive for Manufacturers?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for PLI Telecom & Networking — 4-7% Incentive for Manufacturers, though having it can strengthen your application and unlock other benefits.
Who offers PLI Telecom & Networking — 4-7% Incentive for Manufacturers?
PLI Telecom & Networking — 4-7% Incentive for Manufacturers is offered by Department of Telecommunications, a government body. It is provided as non-dilutive funding.
How do I apply for PLI Telecom & Networking — 4-7% Incentive for Manufacturers?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
More funding from Department of Telecommunications
Department of Telecommunications runs another program listed on startupfunds — compare them before you decide where to apply.
Alternatives to PLI Telecom & Networking — 4-7% Incentive for Manufacturers
Not sure PLI Telecom & Networking — 4-7% Incentive for Manufacturers is the right fit, or already applied? These are other subsidies open to Indian startups that founders shortlist alongside it.
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