On October 14th, the DoT has approved 31 investment proposals it invited under the Telecom PLI Scheme, first announced in February 2021. The proposals entail an investment worth Rs. 3,345 crore in the sector over the next 4.5 years.
Telecom PLI Scheme Winners Announced
The Minister of State for Communications, Devusinh Chauhan, said, "the investment of Rs. 3,345 crore in the next 4.5 years is just a beginning. Government is helping you (telecom sector players) as a catalyst".
Notably, Foxconn, Nokia India, Rising Star, Flextronics, Flex, Commscope and Sabrina made up the list of selected global players. Also, Tejas Networks, VVDN Technologies, Dixon Technologies, NeoLync, Syrma, Akashastha Technologies, ITI and HFCL Group were the selected domestic players.
The Telecom PLI Scheme will facilitate manufacturing telecom gear in India. It will also incentivize companies who will invest in the same. Basically, the "investments" here refer to the investment in the manufacturing capacity these companies will make over the next 4.5 years. To that regard, the government has set aside Rs. 12,195 crore for incentives under the scheme.
India seeks to boost the production and become a host nation for telecom gear as well, a move well-reflected in the smartphone manufacturing industry. Interestingly, the Indian government has also set up a similar PLI scheme for consumer electronics such as laptops and tablets.
The Government has also been expecting equipment worth Rs. 2.44 lakh crore being manufactured in the country. Apart from this, it will also create 40,000 direct and indirect jobs. Moreover, the investors can earn incentives as high as 20 times their committed investment. This will attract more global vendors while also pushing local vendors to overseas markets.