The Department of Telecommunications (DoT) has approved investment proposals of 31 companies amounting to Rs 33.45 billion over the next four years under its production-linked incentive (PLI) scheme for telecom and network equipment manufacturing.
The 31 companies include 16 micro, small and medium enterprises (MSMEs) and 15 non-MSMEs (8 domestic and 7 global). The MSME category includes Coral Telecom, Elcom Innovations, Frog Cellsat, GDN Enterprises, GX India, Lekha Wireless Solutions, Panache Digilife, STL Networks, and eight others.
The eligible domestic companies under the non-MSME category inclue Akashastha Technologies, Dixon Technologies, HFCL, ITI Limited, Neolync, Syrma Technology, Tejas Networks, and VVDN Technologies. While the eligible global companies under the non-MSME category include Commscope, Flextronics, Foxconn, Jabil Circuit, Nokia Solutions and Networks India, Rising Stars Hi-Tech, and Sanmina-SCI India.
The DoT released the PLI scheme for telecom and network equipment manufacturing on February 24, 2021, with an outlay of Rs 121.95 billion spread over five years (2021-22 to 2025-26).
Commenting on the government’s approval, prof N.K. Goyal, chairman emeritus Telecom Equipment Manufacturers Association of India (TEMA), said, “This will boost R&D, innovations and help in domestic manufacturing of 4G and 5G. India will soon be the supplier to the world for 4G and 5G. The expected turnover of more than Rs 1.82 trillion will raise Indian manufacturing to a global level. TEMA expects this will give direct and indirect employment opportunities to about 1,00,000 persons, over next five years”.
“It is great to see that during the 75th year of independence, the landmark of this decision to put MSME at par with large and global companies, by an announcement for 16 MSMEs and 15 non-MSME at the same time with MSME getting 1 per cent additional benefit. There has been equal treatment between domestic and global companies as both got 8 and 7 winners respectively”, he added.