Global electronics manufacturing companies Foxconn, Flex, Jabil Circuit, Sanmina SCI are among 29 companies that have registered under the Rs 12,195 crore production linked incentive scheme for the telecom sector.
Global electronics manufacturing companies Foxconn, Flex, Jabil Circuit, Sanmina SCI are among 29 companies that have registered under the Rs 12,195 crore production linked incentive scheme for the telecom sector, according to an official source. Another source said that Foxccon and its subsidiary Rising Stars Mobile have registered for the scheme separately with the project management agency of the scheme, Small Industries Development Bank of India (SIDBI).
“Telecom PLI is seeing interest from all global major investors. Foxconn, Flex, Jabil Circuits, Sanmina SCI, Nokia and several companies have registered for it. Total 29 companies have registered for it till Wednesday. There is still about a week left for the deadline. We expect more companies to come,” an official source told PTI. Jabil Circuit makes telecom gears for Ericsson in India but the Swedish firm has not registered yet, as per sources.
Domestic telecom gear makers HFCL and Coral Telecom have also registered for the telecom PLI scheme, while ITI Limited, Dixon Technologies, Tejas Networks are also planning to register and apply for the scheme. Under the scheme, an investor can get the incentive for incremental sales up to 20 times the committed investment, enabling it to reach global scales and utilise unused capacity and ramp up production. The scheme will be effective from April 1, 2021.
Investments made by successful applicants in India from April 1, 2021, onwards and up to the financial year 2024-25 will be eligible for incentives, subject to qualifying incremental annual thresholds. The support under the scheme will be provided for a period of five years from FY22 to FY26. The scheme is expected to bring an investment of over Rs 3,000 crore and generate tax revenue of about Rs 17,000 crore.
The government expects that the scheme will encourage the production of equipment worth Rs 2.44 lakh crore, with exports of around Rs 2 lakh crore over a period of five years.