Top global and local companies set to apply for telecom equipment PLI Scheme

Leading global telecom equipment manufacturers Cisco, Nokia, Ericsson, Jabil and contract manufacturer Flex and Foxconn are likely to apply for the Rs 12,195-crore Production-Linked Incentive Scheme for the sector announced by the government recently. 

According to industry sources, formal applications from these manufacturers are likely once the Department of Telecommunications announces the final guidelines. Tejas Networks and HFCL are among the local players that have evinced interest, and the government expects more companies to follow suit. 

The guidelines will specify how many global and local players would be selected. For the mobile phones PLI scheme, five global and five local companies have been chosen. The PLI scheme for telecom equipment is designed to offer incentives to the chosen firms for incremental production over the base year. Through such incentives, the government is aiming to reduce imports, boost domestic production, increase employment and export competitiveness. 

The scheme, which would be operational from April 1, would lead to incremental production of around Rs 2.4 lakh crore with exports of around Rs 1.95 lakh crore over five years. Sources in the government said the scheme is expected to create 40,000 jobs, revenues of around Rs 8,500 crore in direct taxes and Rs 8,700 crore in indirect taxes. like GST. It is expected to bring in investments of over Rs 3,000 crore. 

Telecom equipment that would be covered under the scheme includes core transmission equipment, 4G and 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 so on.

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