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India to receive Rs 3,300 cr investment from 31 companies

Wednesday, 13 Oct 2021
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India is set to receive an investment of about Rs 3,300 crore from 31 domestic and multinational companies over a period of four years under the ambitious production-linked incentive or PLI Scheme that is expected to employ as many as 40,000 individuals in the telecom sector.

Following the incentive package unveiled early in 2021, proposals from as many as 31 companies that included 16 micro, small and medium enterprises (MSME), seven multinationals and eight domestic players have been approved by the telecom department (DoT).

The multinationals included Nokia Solutions and Networks, Foxconn Technology, Flextronics Technologies, Commscope and Jabil Circuit. In addition, HFCL, Tejas Networks, VVDN Technologies, Dixon Electro Appliances, and state-run ITI were among home grown companies declared eligible under the scheme.

The scheme is expected to facilitate production of nearly 1.82 lakh crore units, and investment of about Rs 3,345 crore was envisaged in the sector for over four years, creating an additional employment of more than 40,000 people.

In April 2021, the Centre launched a programme with an outlay of Rs 12,195 crore to promote networking equipment by incentivising incremental investments by domestic and foreign companies.

The scheme, according to the note, will boost research and development (R&D) activities locally with companies committed to spend 15 percent of their revenues for the development of new products.

The support under the scheme will be provided for a five-year term from FY22 to FY26.

The scheme for the telecom sector includes manufacturing of transmission equipment, next generation (4G and 5G) radio access network and wireless equipment, customer premise equipment (CPE), access devices, routers and switches.

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