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Telecom equipment PLI scheme a ‘game changer’: DoT Secy , check specifications

Photo: Connect

Telecom secretary Anshu Prakash has stated that the Production Linked Incentive (PLI) scheme for telecom equipment and networking products will be a major “game changer” and the primary response from the industry has been positive.

“The special features of the scheme include separate earmarking of funds for MSMEs and incentivizing sales up-to 20 times of minimum cumulative yearly investment for the purpose of benefits,” Prakash told in an article published by ET a day after the government released guidelines for organisation to benefit under the scheme.

Prakash mentioned that the registration portal was open and a window of 30 days had been allowed for organisations to apply.

The government released the guidelines , on Thursday , under which 10 large organisations and 10 MSMEs will be selected to get sops, with the Centre hoping to encourage investments of Rs 3,000 crore and spur local manufacturing worth Rs 2.4 lakh crore over five years.

“As the first company to manufacture telecom equipment in India since 1994, we welcome the PLI scheme since it will boost the manufacturing eco system in the country,” Nitin Bansal, managing director, Ericsson India, said in a statement.

Local companies like Sterlite, HFCL, Coral Telecom, Dixon Technologies and VVDN Technologies also plan to increase their facilities.

“We have formulated a plan to invest in manufacturing consumer premise equipment, switches and routers. Dixon has also announced a joint venture with Bharti Enterprises to manufacture telecom gear in India,” Sunil Vachani, executive chairman, Dixon Technologies had claimed.

According to guidelines, non-MSMEs will be allowed for incentives ranging from 4% to 6% of incremental production in a year. The plan offers a bigger incentive of 4%-7% to micro, small and medium enterprises that must invest Rs 10 crore, while large companies have an investment threshold of Rs 100 crore. FY19-20 will be treated as the base year, while the five-year period will begin from April 1, 2021.