Telecom equipment: Selected firms for PLI to be announced soon

By: |
August 24, 2021 4:50 AM

The government has received 36 applications from global and local firms, including Nokia, Jabil, Cisco, Flex, Foxconn among others.

The scheme is expected to offset huge imports of telecom equipment worth more than Rs 50,000 crore and reinforce it with Made-in-India products both for domestic markets and exports.The scheme is expected to offset huge imports of telecom equipment worth more than Rs 50,000 crore and reinforce it with Made-in-India products both for domestic markets and exports.

The department of telecommunications (DoT) will soon announce the list of companies selected for the production-linked incentive (PLI) scheme for the manufacture of telecom equipment. The government has received 36 applications from global and local firms, including Nokia, Jabil, Cisco, Flex, Foxconn among others.

“The processing has already been done and the names of the selected firms will be announced in a couple of weeks,” said an official aware of details.

The DoT will grant approvals to 10 eligible applications each in the MSME and non-MSME categories. Of the 10 applications in non-MSME category, at least three applicants will be eligible domestic companies. The applications will be short-listed from highest to lowest on the basis of committed cumulative incremental investment during the scheme period.

However, the guidelines say that if the government is left with the budgetary allocation, more companies can be selected. Also, a fewer number of firms can be selected if budgetary outlay is exhausted. In that case, companies which have committed a bigger amount of investment will be selected.

The scheme, with an outlay of Rs 12,195 crore, offers incentives in the range between 4% and 7% for different categories and tenures. For the MSMEs, a 1% higher incentive is proposed in year 1, year 2 and year 3.

The financial year 2019-20 will be treated as the base year for computation of cumulative incremental sales of manufactured goods net of taxes.

The minimum investment threshold for MSMEs has been kept at Rs 10 crore and for others at Rs 100 crore.

It is estimated that full utilisation of the scheme funds is likely to lead to an incremental production of around Rs 2.4 lakh crore with exports of around Rs 2 lakh crore over five years. It is also expected that the scheme will bring in investments of around Rs 3,000 crore and generate huge direct and indirect employment. This is in line with the larger objective of “Make in India”.

Telecom equipment that would get covered under the scheme, includes core transmission equipment, 4G/5G next-generation radio access network and wireless equipment, access and customer premises equipment (CPE), Internet of things (IoT) access devices, other wireless equipment and enterprise equipment like switches, routers, etc.

The scheme is expected to offset huge imports of telecom equipment worth more than Rs 50,000 crore and reinforce it with Made-in-India products both for domestic markets and exports.

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