The DOT may announce the names of companies selected under the production-linked incentive (PLI) scheme for telecom equipment manufacturing in the coming weeks considering applications by companies have been processed, as per a report by Financial Express.
“The processing has already been done and the names of the selected firms will be announced in a couple of weeks,” an official aware of the details told the publication.
To recall, 36 companies, including Nokia, Jabil, Cisco, Flex, Foxconn, among others have applied for incentives worth Rs 12,195 crore earmarked for MSME, local, and global gear makers over a period of five years.
However, Korea’s Samsung which is Reliance Jio’s sole equipment supplier had initially skipped participating in the scheme but later in July this year said it is considering approaching the government to seek an extension in the deadline of the scheme.
Under the scheme, 10 large manufacturers and 10 MSMEs will be selected to receive incentives worth Rs 12,195 crore over five years by achieving stipulated production targets.
Of this, Rs 1,000 crore has been set aside for the 10 MSMEs, three out of which will be domestic companies.
The scheme is expected to bring in investments of more than 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.
The scheme covers products such as core transmission equipment, 4G/5G next-generation radio access network and wireless equipment, access and customer premises equipment (CPE), Internet of things (IoT) access devices, other wireless equipment, and enterprise equipment like switches, routers, among others.
Officials privy to the matter had told that investment proposals have already breached past the government’s target of Rs 3,000 crore, with local and global companies offering to invest Rs 4,500 crore, to manufacture telecom gear worth Rs 2.44 lakh crore locally by 2026.
However, the actual investment approved by the government could be in the range of Rs 3,700 and Rs 3,800 crore, they had said.