/vnd/media/agency_attachments/bGjnvN2ncYDdhj74yP9p.png)
/vnd/media/post_banners/wp-content/uploads/2017/05/towers.jpg)
A senior government official has said that telecom gear makers, under the PLI Scheme, have notched up production worth Rs. 6,200 crore till date.
PLI Scheme Paying Dividends
The government official added that the gear makers have invested Rs. 247 crore since the PLI scheme was announced in February last year. The official said, "we will soon announce progress on the equipment productions; things are good".
Thus far, out of the Rs. 247 crore invested, Rs. 151 crore have come from the MNCs, while the large domestic manufacturers have chalked up another Rs. 86 crore. The MSMEs participating have invested Rs. 9.7 crore towards the PLI scheme.
To summarize, the government had announced the scheme for telecom gear manufacturing last year. It had earmarked 12,195 crore for the telecom industry. The government will incentivize the gear makers with the earmarked money. Notably, the government has seleected both international and domestic gear makers for the scheme.
In October last year, the government had accepted 31 proposals for investment, collectively worth Rs. 3,345 crore.
Notably, Foxconn, Nokia India, Rising Star, Flextronics, Flex, Commscope and Sabrina made up the list of selected global players. Also, Tejas Networks, VVDN Technologies, Dixon Technologies, NeoLync, Syrma, Akashastha Technologies, ITI and HFCL Group were the selected domestic players.
Later last year, a few telecom vendors had reached out to the government, seeking an extension in the scheme by another year to meet targets. However, international telcos such as Nokia and Ericsson will meet targets in the original deadline.
The Government has also been expecting equipment worth Rs. 2.44 lakh crore being manufactured in the country. Apart from this, it will also create 40,000 direct and indirect jobs. Moreover, the investors can earn incentives as high as 20 times their committed investment. This will attract more global vendors while also pushing local vendors to overseas markets.