Thursday’s approval by the Department of Telecom of 31 proposals for an investment of Rs 3.345 crore in the next four-and-a-half years was a sign of confidence.
“The initial investment of Rs 334 crore over the next 4.5 year is only the beginning. Minister of State for Communications Devusinh Chanhan stated that government is supporting you (industry players) to act as a catalyst.
Nokia India, HFCL and Dixon Technologies were selected to participate in the PLI program.
The DoT notified the PLI scheme to telecom and networking products in February 2021. It required a financial outlay totalling Rs 12,195 crore over five years.
The scheme to promote the manufacturing of telecom gear in India is expected encourage equipment production worth Rs 2.44 lakh crore, and provide direct and indirect employment for around 40,000 people.
Investors can receive an incentive to increase sales by up to 200% of their committed investment. This allows them to reach global scales, use their unutilised capacity, and ramp up production.
“This is the best scheme of all PLI schemes. It includes MSMEs. We would have been handicapped without this,” Rajesh Tuli, Coral Telecom managing director, stated.