The Department of Telecommunications (DoT) has to come out with a list of names of companies that are going to be a part of the Production Linked Incentive (PLI) scheme for the manufacturing of telecom equipment. The PLI scheme for producing telecom equipment within India has seen a lot of interest from major local and international companies, which include names such as Jabil, Cisco, Nokia, Foxconn, and others. According to a Financial Express report, the government has already completed the process and now the names of the companies will be announced in a couple of weeks.
Telecom Sector PLI Scheme Worth Rs 12,195 Crores
According to the rules of the scheme, the DoT will grant approvals to 10 MSME and 10 non-MSME companies for the scheme. In the non-MSME category, at least three companies selected will be local.
There’s one thing, though. If the government is left with more budget than estimated, then even a few more companies can be added to the scheme. The benefits will be offered to the companies who have promised to invest bigger amounts.
The telecom sector PLI scheme is worth Rs 12,195 crores. The incentives offered to the companies will range between 4% and 7% for different kinds of companies and for different tenures. MSMEs will enjoy the benefit of a 1% higher incentive in the first, second, and third years of the scheme.
To be a part of the scheme, the minimum amount that an MSME can commit to the scheme is Rs 10 crore, and the same for a non-MSME company is Rs 100 crore.
The PLI scheme for the telecom sector will push the government’s vision of ‘Make In India’ and will further reduce the costs of network deployment for the telcos since they will be able to source equipment locally. Many devices include IoT, CPE, and more, will be manufactured in India under the scheme.