The Ministry of Communications is working on a proposal to roll out a second edition of the telecom production-linked incentive scheme, focusing on design-led higher value addition, an official source said on Friday.

According to the source, the proposal will be sent for inter-ministerial consultation before being submitted for Union Cabinet approval.

"Telecom PLI is a work in progress. It has to go for inter-ministerial consultation," the source said.

The government had rolled out the first edition of the telecom PLI scheme with an outlay of Rs 12,195 crore. The scheme ended in March 2026.

As many as 42 companies, including 28 MSMEs, received approvals under the PLI scheme for telecom and networking products. Of the total, 17 companies have applied for an additional incentive of 1 per cent under design-led manufacturing criteria.

The first edition of telecom PLI scheme had attracted investment of Rs 6,073 crore against the target of Rs 4,115 crore.

The source said that the telecom ministry wants higher local value addition in India and the ecosystem should be backward integrated design and development.