With an investment of nearly Rs 247 crore, telecom equipment makers have manufactured more than Rs 6200 crore worth of products because of the launch of the production-linked incentive (PLI) scheme for the segment.
The government official stated that they will announce the progress on the equipment production as early as possible.
Large multinational companies like Ericsson and Nokia with Indian Companies have driven the investment and production. They have sought an extension to reach the target i.e. four months to reach the first-year milestones.
Multi-National Companies have invested Rs 151 crore, Large Indian Producers have invested Rs 86 crore and the remaining amount of Rs 9.7 crore was invested by the MSMEs.
The officials shared that the MNC contributed Rs 5,471 crore, Large Indian Companies accounted Rs 641 crore and MSMEs contributed Rs 122 crore balance for the production side.
As per last month’s report, Nokia and Ericsson, Multi-National sellers were on time to reach their targets for telecom and network of the first year of the PLI scheme and have not requested any extension.
However, the multi-national and domestic contract producers have requested an extension for a year to meet their targets to the telecom departments both directly and through the industry body the Cellular Operators Association of India.
The PLI scheme was introduced on April 1, 2021, and will be effective till 2025-26. The main aim of the scheme is to develop India telecom equipment producing hub by captivating global investments and also nurturing homegrown companies.
Assuming an investment of Rs 3,345 crore over four-and-a-half years, the telecom department had sanctioned 31 proposals under the scheme.
Nokia India, HFCL, Dixon Technologies, Ericsson’s Jabil Unit, Flextronics, Foxconn, VVDN Technologies, Tejas Networks, Coral Telecom, Akashastha Technologies, and GS India are the list of the companies selected for the PLI scheme.
With financial expenses of Rs 12,195 crore over the five years, the department informed the PLI scheme on February 24, 2021.
The scheme provides incentives between 4% and 7% for different categories and tenures and a 1% higher incentive is proposed for MSMEs in year one, year two, and year three.
The financial year 2019-20 will be used as the base year for the calculation of cumulative incremental sales of produced goods net of taxes.
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