DoT has proposed a 2 per cent R&D cess on telecom companies to promote the design and manufacture of mobile handsets and infrastructure systems by Indian companies. This will help the government mop up over Rs 15 billion. Of this, Rs 250 million will be used in the form of grants and up to Rs 500 million as sevenyear interest-free loans, which will be granted to six Indian companies that venture into manufacture and design.