Dated 18th February, 2021

The taxability dispute on ocean freight has been finally decided by the Gujarat High Court, which held that taxing ocean freight is ultra vires and leads to double-taxation

Cabinet Approves PLI Scheme for Telecom Sector


The union cabinet has approved Production Linked Incentive (PLI) Scheme worth Rs. 12,195 crore for telecom manufacturing equipment including the next generation 5G technology. The core reason behind this decision is to reinforce it with “Made in India” products both for domestic market and exports and to offset the imports of telecom equipment worth more than Rs. 50,000 crore.

After the encouraging success of PLI related to mobile and component manufacturing, which was announced in April 2020 during the height of the pandemic, the government expects that this will scheme lead to Rs.2.4 trillion increment in productions of telecom equipments also in the country in next five years and will bring investment of more than Rs.3000 crore along with generation of direct and indirect employment. The scheme will be operational from 1st April 2021.

Product Line

  • i Core Transmission Equipment
  • ii 4G/5G, Next Generation Radio Access Network and Wireless Equipment
  • iii Access & Customer Premises Equipment (CPE), Internet of Things(IoT), Access Devices and other Wireless Equipment.
  • iv Enterprise equipment: Switches and Router


The scheme will be eligible subject to achievement of minimum threshold of cumulative incremental investment of Rs.100 crores and Rs.10 crore for MSME. Incentive would be applied on incremental sales of manufactured goods net of tax. (F.Y. 2019-20 shall be treated as the base year).

Incentive Structure


Year 1

Year 2

Year 3

Year 4

Year 5














  •  The companies should immediately commence project planning and strategy to apply for benefits for telecom manufacturing projects in India.
  •   Production, marketing and sales planning for next 5 years and beyond would be critical to identify potential benefit under the scheme.
  •   The PLI Scheme combined with incentives under the respective state industrial policies, manufacturing under customs bonded warehouse programme and a reduce corporate tax rate for new manufacturers, does provide significant benefit to the target segment.
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