Nokia, HFCL among 25 companies register under PLI scheme for telecom sector

Topics Nokia | HFCL | PLI scheme

Around 25 telecom gear makers -- including Nokia and HFCL -- have applied under the Rs 12,195 crore production linked incentive scheme for the sector, according to official sources.

Indigenous companies Tejas Networks and Dixon Technologies have confirmed that they will apply for the scheme before the deadline ends on July 3.

"25 companies have registered for the PLI scheme till date. We have received interest from big companies as well. They are expected to apply before the deadline ends," an official source told PTI.

Under the scheme, an investor can get the incentive for incremental sales up to 20 times the committed investment, enabling them to reach global scales and utilise their unused capacity and ramp up production.

HFCL Managing Director Mahendra Nahata and Coral Telecom confirmed that they have applied for the scheme.

Another official source said that Nokia has also registered for the scheme.

Coral Telecom managing director Rajesh Tuli said there are no choice for any micro, small and medium enterprises because they will become non-competitive by 7 per cent if they don't participate in the scheme and die.

He said the telecom sector PLI is an excellent scheme, but large weightage should be given to 'the domestic value addition to the selection criteria.

"Otherwise, you may get 10 big investors or even traders bidding in MSME category each committing to invest Rs 50 crore who would do soldering and assembly which is about 7 per cent of the manufacturing cost.

This 7 per cent would be reimbursed by the government. One has to be careful and safeguard against such situations where we may only create traders who upscale themselves by one step," Tuli said.

Tejas Networks chief executive officer and managing director Sanjay Nayak and Dixon Technologies executive chairman Sunil Vachani said they will be applying for the scheme.

State-owned telecom gear maker ITI Limited is also in the process of submitting applications.

The scheme will be effective from April 1, 2021.

Investments made by successful applicants in India from April 1, 2021, onwards and up to the financial year 2024-25 will be eligible for incentives, subject to qualifying incremental annual thresholds.

The support under the scheme will be provided for a period of five years from FY22 to FY26.

The scheme is expected to bring an investment of over Rs 3,000 crore and generate tax revenue of about Rs 17,000 crore.

The government expects that the scheme will encourage the production of equipment worth Rs 2.44 lakh crore, with exports of around Rs 2 lakh crore over a period of five years.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel