Telecom equipment makers reach Rs 6,200-crore production in first year of PLI; here are the details

Over the next five years, it is estimated that the maximum utilisation of the scheme funds will result in gradual production of around Rs 2.4 lakh crore and exports of around Rs 2 lakh crore. The scheme was launched on April 1, 2021, and is expected to bring in around Rs 3,000 crore in investments and create a large pool of direct and indirect jobs. This is in line with the bigger Make in India objective.

Big multinational players such as Ericsson and Nokia have been pushing production and investment so far, with Indian companies demanding an extension to meet their targets, reasoning they only have four months to meet the first-year milestones.

The telecom department had given its nod to 31 proposals under the PLI scheme, counting Rs 3,345 crore in investments spread over four and a half years.

The players selected as per the scheme included Nokia India, Ericsson's Jabil unit, Flextronics, Foxconn, Coral Telecom, VVDN Technologies, HFCL, Dixon Technologies, Tejas Networks, Akashastha Technologies, and GS India.

According to the government official, MNCs have invested Rs 151 crore while big Indian manufacturers contributed Rs 86 crore. MSMEs on the other hand have contributed about Rs 9.7 crore.

The official also said that global players have accounted for Rs 5,471 crore in production so far, while big Indian companies have contributed Rs 641 crore. The remaining Rs 122 crore production came from MSMEs.

The scheme provides incentives ranging from 4 percent to 7 percent depending on category and tenures. For the first three years, there is a 1 per cent higher incentive for MSMEs.