DESIGN-LED MANUFACTURING SCHEME PROPOSED BY BUDGET-2022-23 TO BUILD A STRONG ECOSYSTEM FOR 5G

REQUIRED SPECTRUM AUCTIONS TO BE CONDUCTED IN 2022 TO FACILITATE ROLLOUT OF 5G MOBILE SERVICES WITHIN 2022- 23

5% OF ANNUAL COLLECTIONS UNDER USOF TO BE ALLOCATED TO ENABLE AFFORDABLE BROADBAND AND MOBILE SERVICE PROLIFERATION IN RURAL & REMOTE AREAS

CONTRACTS FOR LAYING OPTICAL FIBRE IN ALL VILLAGEST TO BE AWARDED UNDER THE BHARATNET PROJECT THROUGH PPP IN 2022-23

The Union Budget 2022-23 seeks to  lay the foundation and give a blueprint to steer the economy over the Amrit Kaal of the next 25 years – from India at 75 to India at 100. While presenting the Union Budget, Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman said, “It continues to build on the vision drawn in the Budget of 2021- 22. Its fundamental tenets, which included transparency of financial statement and fiscal position, reflect the government’s intent, strengths, and challenges.”

The Government aims to attain the vision of promoting digital economy & fintech, technology enabled development by achieving certain goals during the Amrit Kaal.

Telecom Sector:

Union Budget 2022-23 has proposed to launch a scheme for design-led manufacturing to build a strong ecosystem for 5G as part of the Production Linked Incentive (PLI) Scheme. The Union Finance Minister has stated that the Productivity Linked Incentive in 14 sectors for achieving the vision of AtmaNirbhar Bharat has received excellent response, with potential to create 60 lakh new jobs, and an additional production of ₹ 30 lakh crore during next 5 years.

Smt Nirmala Sitharaman highlighted that the telecommunication in general, and 5G technology in particular, can enable growth and offer job opportunities. Required spectrum auctions will be conducted in 2022 to facilitate rollout of 5G mobile services within 2022- 23 by private telecom providers.

Further, in order to enable affordable broadband and mobile service proliferation in rural and remote areas, the Budget has proposed to allocate five per cent of annual collections under the Universal Service Obligation Fund (USOF). This will promote R&D and commercialization of technologies and solutions.

To bring access to e-services, communication facilities, and digital resources in all villages in par with the access of same in urban areas, the Union Budget has announced that the contracts for laying optical fibre in all villages, including remote areas, will be awarded under the Bharatnet project through PPP in 2022-23. Completion is expected in 2025. Measures will be taken to enable better and more efficient use of the optical fibre.

Design-led manufacturing for 5G ecosystem promoted under PLI, with spectrum auctions and rural broadband support. A design-led manufacturing scheme under the Production Linked Incentive is proposed to build a domestic 5G ecosystem; spectrum auctions will be conducted to facilitate 5G rollout by private providers. Five per cent of annual Universal Service Obligation Fund collections is to be allocated to enable affordable broadband and mobile services in rural and remote areas and to promote R&D and commercialization. Bharatnet contracts for optical fibre to all villages will be awarded through PPP to extend digital access and improve efficient use of the fibre network.