The Department of Telecom on Thursday, October 14, approved proposals of 31 telecom and networking firms under the Production- Linked Incentive (PLI) scheme which was announced in February earlier this year. The 31 companies selected by DoT for the scheme include sixteen micro, small and medium enterprises (MSME), seven multinationals and eight domestic players.
The approved proposals entail a total investment of Rs. 3,345 crores which will be rolled out over the next 4.5 years as part of the PLI scheme whose financial outlay was notified to be Rs.12,195 crores over a period of five years.
Among companies deemed eligible for the scheme include foreign players such as Foxconn, Nokia India, Rising Star, Flextronics, Flex, Sabrina and Commscope. From the domestic telecom sector, the companies eligible include Tejas, Dixon Technologies, VVDN Technologies, NeoLycn, Syrma, Akshastha Technologies, ITI and the HCFL group.
The ambitions production-linked incentive scheme for the telecom sector is directed at boosting local production of telecom equipment, reducing dependency on imports and making India a global manufacturing hub by incentivising companies making equipment in India.
Stating that the investment of Rs. 2,345 crore is just the beginning, Minister of State for Communications Devusinh Chauhan, asserted that the government through this investment is helping telecom industry players as a catalyst.
With the initial investment of Rs. 3,345 crores, the scheme is expected to promote the production of equipment worth Rs. 2.44 lakh crore, resulting in the creation of direct and indirect employment of more than 40,000 people, the DoT stated in a note.
The PLI scheme for the telecom sector comprises manufacturing of transmission equipment, next-generation (4G and 5G) radio access network and wireless equipment, customer premise equipment (CPE), access devices, routers and switches etc. The scheme will provide support to the industry during financial years 2021-2022 to 2025-2026.