Nokia and HFCL are interested in being part of the Production Linked Incentive (PLI) scheme introduced by the government for the telecom sector. The telecom PLI scheme is worth over Rs 12,195 crore, and the centre will start accepting applications for the same from the interested companies on Friday.
According to a PTI report, both Nokia and HFCL are looking to be a part of the telecom PLI scheme and gain benefits from the incentives. For the unaware, under the scheme, an investor/company can get up to 20 times more incentives than their committed investment if they reach their production targets. This will help India in becoming a global manufacturing hub since companies will manufacture more and more to meet the targets and then will further export to other nations.
PLI Scheme for Telecom Will Make India Self-Reliant
The PLI scheme for the telecom industry will make India self-reliant. Managing Director at HFCL, Mahndra Nahata, said the telecom PLI scheme would reduce the overall imports to India and help in increasing exports. Nahata further said the scheme would help the country in achieving the Atmanirbhar Bharat goal faster.
Nokia India also showed its support by tweeting that it is fully committed to the vision of the telecom PLI scheme. Nokia already manufactures a wide range of telecom equipment from 2G to 5G in its Chennai facility and will keep doing so.
The PTI report highlights that Nokia will be going through the final guidelines announced by the government and then participate in the scheme. The scheme has been effective from April 1, 2021. The Department of Telecommunications (DoT) couldn’t come out with the guidelines earlier because of the ongoing pandemic.
The scheme is expected to bring investments of about Rs 3,000 crore in India and also generate around Rs 17,000 crore in taxes for the government. Other telecom gear manufacturers such as Ericsson are also very interested in the scheme.
With 5G coming to India in the near-to-medium future, this scheme couldn’t have come at a more appropriate time for the country. Hopefully, the PLI scheme for the telecom industry helps India in achieving self-reliability when it comes to mobile networks and equipment.