Nokia, HFCL Will Participate in Telecom PLI Scheme

On Thursday, telecom gear makers Nokia and HFCL said that they will participate in the 12,195-crore telecom PLI scheme.

Nokia, HFCL First to Confirm Participation in Telecom PLI Scheme

The registration for the PLI scheme in Telecom infrastructure is now underway from today and will go on till 3rd July.

Under the scheme, an investor can get incentive for incremental sales up to 20 times the committed investment. The government hopes that the scheme will enable the investors to reach global scales and ramp up production.

Nokia India took to Twitter to congratulate the telecom department which announced the guidelines for the PLI Scheme late on Thursday.

https://twitter.com/NokiaIndia/status/1400453524173975552

A company official told PTI that Nokia will go through the guidelines and participate in the scheme.

Furthermore, HFCL MD Mahndra Nahata said that the scheme will make telecom equipment manufacturing competitive, and reduce trade deficit. He said, "PLI scheme will go long way in achieving the objective of Atmanirbhar Bharat. We will participate in the scheme".

As per the guidelines announced yesterday, the scheme will come into effect April 1, 2021 onwards. All the investments made from the starting date to the end of FY 24-25 will be eligible for incentives. The government will provide support under the scheme for a period of five years, that is, from FY22 to FY26. Also, estimates suggest that the scheme will bring an investment of over Rs 3,000 crore and generate a tax revenue of about Rs 17,000 crore.

The government has also specified the eligible companies. These are,

• Global companies with annual turnover of Rs 10,000 crore.
• Domestic companies with over Rs 250 crore annual turnover.
• MSMEs with annual turnover of over Rs 10 crore.

The government expects that the scheme will encourage production of equipment worth Rs 2.44 lakh crore. Over 5 years, the scheme will also promote exports of around Rs 2 lakh crore. Also, the scheme will generate direct and indirect employment for about 40,000 people.

A PLI Scheme to Make India Atmanirbhar in Telecom Infra

Ericsson India MD Nitin Bansal said on the occasion, "as the first company to manufacture telecom equipment in India since 1994, we welcome the PLI scheme as it will boost the manufacturing ecosystem in the country".

Telecom operators' body COAI said that initiatives under the PLI scheme will further boost local manufacturing and also create employment.

SP Kochhar, DG, COAI, said, "India is already the second-largest telecom market globally, and this will go a long way in making the country a global hub for telecom innovation".

TEMA said the scheme has come at the most appropriate time. Chairman Emeritus NK Goyal said, "we complement the DoT for a very out-of-the-box initiative to reserve three applicants in each category only for domestic companies. This is much-needed effort and will result in Indian global champions with Rs 12,195 crore incentive over next five years".

Telecom Equipment and Services Export Promotion Council (TEPC) Chairman Sandeep Aggarwal said the fresh investments under the telecom PLI scheme will give a boost to the economy and also create jobs. He added, "the PLI scheme will complement the 5G ecosystem. By the time we see an increment in demand, the telecom manufacturing sector will be ready with new products and innovations," Aggarwal said.