The government is reportedly planning to invest Rs 100 billion to promote indigenous manufacturing of telecom equipment in the country. Out of the total investment, the government will extend subsidy worth Rs 60 billion to the local telecom equipment manufacturing companies in India.
The government will offer long-term loans at lower interest rates to the domestic telecom product manufacturers. Soft-loans worth Rs 10 billion at the interest rate of three per cent will be provided to the telecom equipment manufacturing companies to help them meet initial product development and marketing costs. Meanwhile, Rs 8 billion will be disbursed as an ?initial deployment incentive? to help companies meet the difference between the manufacturing cost of the products and the revenue earned. In addition, the government will also provide support worth Rs 1200 billion to the Indian telecom product makers for exports. Further, the government has set aside Rs 10 billion for incentivising mobile phone companies to buy ?Made in India? telecom products from local manufacturers.
