The Indian government is reportedly planning to revamp the telecom production-linked incentive (PLI) scheme. The telecom PLI scheme was announced by the government in February 2021. A total outlay of Rs 12,195 crore was given for the scheme. In FY 23, less than half of the 42 companies that participated in the scheme could meet their targets, leaving Rs 1,500 crore unutilised. Looking at this, the Indian government is planning to revamp the scheme, so that more equipment could become eligible for the scheme (for production targets) and fresh bids could come, said an ET report.
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It is worth noting that in 2022, the government amended the telecom PLI scheme to also include and promote design-led manufacturing, with an additional incentive of one percent. In the near future, the sector may witness more products getting added to the scheme. This will help and promote the companies to produce more within India and also reach their targets to get financial benefits.
As per the report, some of the products such as gigabit passive optical network (GPON) terminals are in huge demand in India. This is because of the rapid 5G deployment by Airtel and Jio. In FY23, twenty (20) companies could meet their production targets. Some of these companies include names such as Jabil, VVDN, Nokia, Sanmina, HFCL, Coral, and Tejas Networks. These companies will be eligible to receive financial benefits amounting to approximately Rs 400 crore.
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The telecom PLI scheme will boost job creation in India as companies aim for higher targets and more companies become a part of it. The government is promoting the growth of both MSMEs (micro, small and medium-sized enterprises), along large corporations with the scheme. PLI scheme will not only make India a manufacturing hub but will also add to the growth of its economy.
