Production Linked Incentive (PLI) Scheme for Promoting Telecom and Networking Products Manufacturing in India

· 31 companies comprising 16 MSMEs and 15 Non-MSMEs (8 Domestic and 7 Global companies), get approval under the Scheme

· Expected Incremental production of around ₹1.82 Lakh Crore

· Investment of around ₹3345 crore envisaged in the sector over 4 years creating additional employment of more than 40 thousand people

· Objective to boost domestic manufacturing in the telecom and networking products by incentivising incremental investments and turnover with total outlay of ₹ 12,195 crore

Devusinh Chauhan, Minister of State of Ministry of Communications, launched Production Linked Incentive (PLI) Scheme for Telecom and Networking Products on 14 October, 2021. Smt Anita Praveen, Special Secretary and other senior officers from Department of Telecommunications, Ministry of Communications also attended the event.

Speaking at the occasion, Mr. Chauhan said that PLI Scheme in telecom sector has been launched to realize the Prime Minister’s vision of Atmanirbhar Bharat. It will help in reducing India’s dependence on other countries for import of telecom and networking products. He called upon the industry leaders to focus on making high quality products and expressed the commitment to provide incentives and support to promote world class manufacturing in the country.

The PLI Scheme is being launched by DoT with the objective to boost domestic manufacturing in the telecom and networking products by incentivising incremental investments and turnover with total outlay of ₹ 12,195 crore. The scheme is effective from 1^st April, 2021. Investment made by successful applicants in India from 1^st April, 2021 onwards and up to FY 2024-25 shall be eligible, subject to qualifying incremental annual thresholds. The support under the Scheme shall be provided for a period of five (5) years, i.e. from FY 2021-22 to FY 2025-26.

As per Scheme and Scheme Guidelines, a total of 31 companies, comprising of 16 MSMEs and 15 Non-MSMEs (8 Domestic and 7 Global companies) have been found eligible and are being given approval under Production linked Incentive (PLI) Scheme of Department of Telecommunications (DoT), Ministry of Communications. The eligible MSME companies are:

i. Coral Telecom Limited

ii. Ehoome IoT Private Limited

iii. Elcom Innovations Private Limited

iv. Frog Cellsat Limited

v. GDN Enterprises Private Limited

vi. GX India Private Limited

vii. Lekha Wireless Solutions Pvt Ltd

viii. Panache Digilife Limited

ix. Priyaraj Electronics Limited

x. Sixth Energy Technologies Private Limited

xi. Skyquad Electronics and Appliances Private Limited

xii. STL Networks Limited

xiii. Surbhi Satcom Private Limited

xiv. Synegra Ems Limited

xv. Systrome Technologies Private Limited

xvi. Tianyin Worldtech India Private Limited

The eligible domestic companies under Non MSME category are:

i. Akashastha Technologies Private Limited,

ii. Dixon Electro Appliances Private Limited,

iii. HFCL Technologies Private Limited,

iv. ITI Limited,

v. Neolync Tele Communications Private Limited,

vi. Syrma Technology Pvt Ltd,

vii. Tejas Networks Limited and

viii. VVDN Technologies Private Limited.

The eligible global companies under Non MSME category are:

i. Commscope India Private Limited,

ii. Flextronics Technologies (India) Pvt Limited

iii. Foxconn Technology (India) Private Limited,

iv. Jabil Circuit India Private Limited,

v. Nokia Solutions and Networks India Private Ltd,

vi. Rising Stars Hi-Tech Private Limited,

vii. Sanmina-SCI India Private Limited.

As per commitments given by applicants, these 31 applicants are expected to invest ₹ 3345 crore in the next 4 years and generate incremental employment of more than 40,000 people with expected an incremental production of around ₹ 1.82 Lakh Crore over the scheme period. The scheme is expected to boost domestic Research & Development of new products on which 15% of the committed investment could be invested.

The enthusiastic response to the scheme by domestic and global manufacturers indicates strong confidence in the “Atmanirbhar Bharat” - Make in India and achievement of scheme objective of creating global champions out of India who have the potential to grow in size and scale using cutting edge technology and thereby penetrate the global value chains. Telecom products play an important role in the larger vision of “Digital India”.