42 companies now have approval for PLI in telecom -; networking equipment segment

1 Nov 2022 , 09:26 AM

The production-linked incentive (PLI) plan for telecom and networking products has been increased by the ministry of communications. A total of 42 companies, including 28 medium and small enterprises (MSMEs), have been approved to receive sops for a total investment of Rs4,115 crore.

According to design-led manufacturing criteria, 17 of the chosen companies have asked for an additional 1% incentive, the government said in a statement on Monday. Global powerhouses like Samsung, Nokia, Jabil, Rising Star (Foxconn), and Flextronics are among the companies chosen under the programme, as are regional contenders like HFCL, ITI, VVDN, and Tejas Networks, among others.

The government claimed in the statement that “India is positioned to emerge as a design and manufacturing centre for telecom and networking equipment.”

Over the course of the five-year scheme, the government predicts an increase in sales of Rs2.45 lakh crore and the creation of more than 44,000 new employment.

For context, the PLI plan for telecom and networking devices was announced by the Department of Telecommunications (DoT) in February 2021 with an investment of Rs12,195 crore. On October 14, 2021, the scheme received clearance for a total of 31 companies.

In April of this year, the programme was changed to encourage design-led production by adding an extra 1% incentive rate on top of already existing incentive rates. It received an amount of Rs4,000 crore out of the Rs12,195 crore. The majority of the chosen companies were unable to meet the production goals because to supply chain delays caused by Covid, hence the programme was prolonged by a year.

The PLI scheme’s existing enterprises were permitted to apply for the design-led PLI scheme and add further goods. Additionally, they received the benefit of a one-year extension to the five-year PLI plan period. Thirteen of the twenty-two enterprises that took advantage of the possibility to move during their first year were fresh applicants.

The DoT claimed in its statement that the enthusiastic reaction from local and international businesses to manufacture telecom equipment in the nation shows a high level of confidence in government activities.

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