The Production Linked Incentive (PLI) scheme is one of the biggest flagship bets by the central government in recent times when it comes to electronics manufacturing. This scheme might prove to be a gamechanger in the arena of telecom equipment. Currently, in the market, there is a prevalent skepticism towards the Chinese equipment manufacturers, whereas the replacement of the same, Nokia and Ericsson, are pricier options for the telecom companies. The government thinks that domestic manufacturers might fill the vacuum. In a new development, Dixon Technologies has decided to invest Rs 200 to Rs 250 crore along with Bharti Enterprises in its Punjab plant for manufacturing. The said company will be making the investment through its subsidiary.
Other Players Apply to PLI As Well
Sunil Vachani, Dixon Technologies Executive Chairman, said that the company is looking forward to this opportunity and is excited. He also added that in partnership with Bharti Enterprises, they would be manufacturing telecom equipment and CPE (Consumer Provided Equipment). It is worth noting that Dixon is not the only one who has applied under the PLI scheme, as per an ET Telecom report, other players like HFCL, Coral Telecom, VVDN, and Tejas Networks have also got the green flag for the same. Dixon had previously got the go-to for PLI under the IT hardware and mobile handset category.
Huge Benefits to MSMEs Under Scheme
The new pipeline of telecom equipment manufacturers was opened by DoT last week by issuing guidelines for telecom manufacturers in India. 10 large manufacturers and 10 Small, Micro, and Medium-sized manufacturers will be given the benefits of this scheme upon selection. Interest subvention happens to be one of the benefits among many under the PLI scheme, for which it seems to be getting a lot of traction. The incentives to be distributed to the recipients amount to Rs 12,195 crore over a five-year period on reaching stipulated targets.
Out of the total amount, Rs 1,000 crore happens to be allocated for the MSMEs, which will be ten in total. Out of these ten companies, three are supposed to be domestic manufacturers. The scheme is likely to bring a total investment of Rs 3,000 crore and will possibly add to the central tax revenue a figure of Rs 17,000 crore.
