Telecom PLI Scheme to Help India Become Self-Reliant: DoT Official

A recent report that mentions quotes from a DoT official states that the PLI scheme will allow India to become self-reliant and help in 5G related matters

Telecom PLI

A recent report by PTI has surfaced with a statement from a senior DoT official, who wished to remain anonymous, stating that the main objective of the Rs 12,195-crore production linked incentive or PLI scheme for the telecom sector is to help domestic production, reduce import dependency as well as create jobs.

The official said that the scheme had been designed post wide and regular consultations with the industry, inclusive of discussions in relation to the provision around research and development.

Via PLI, the DoT’s objective is to boost local production of telecom equipment, reduce dependency on imports and provide opportunities to domestic manufacturers to focus on exports. India wants to “make for the world” was also stated by the individual.

In case you missed it, the Department of Telecom (DoT) recently started accepting applications for the PLI scheme meant for the telecom sector that intends to provide an incentive for manufacturing of network equipment such as routers, broadband transmission equipment, 5G equipment as well as consumer-related devices and electronics items that are necessary for providing optical fibre-based connections.

What Does The PLI Scheme Specify?

According to the scheme, an investor can be given an incentive for incremental sales of up to 20 times the committed investment, which in turn enables them to reach global production scales as well as utilise their unused capacity to ramp up production.

Top leaders like Nokia and HFCL have shown interest when it comes to participating in the scheme, whilst both international and domestic players have appreciated the move. Famed Korean electronics giant Samsung has also reached out to the DoT with backing for the scheme.

Samsung, in a letter to the DoT, stated that during these unprecedented times, proper and continuous policy support, as well as the creation of a conducive policy environment for the electronics sector, intends to show the Indian government’s commitment to make the country a manufacturing hub.

In a statement within the letter, it is mentioned that Samsung sincerely appreciates and wholeheartedly supports the government’s initiative network PLI. The scheme will not only allow in complementing the next generation telecom services, including the 5G rollout, but it will also support India’s flagship programme. Programmes like Make in India will also benefit from the same.

Furthermore, government sources have also hinted that Foxconn Technology Group has also shown interest and supported the scheme, which could be signs of great things to come for the Indian manufacturing scene as a whole.

Shloke is your go-to guy when it comes to consumer tech. Specializing in In-Depth pieces, he's also getting to grips with Telecom. His hobbies consist of Formula One and Gaming.

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