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

Press Information Bureau:  October 18, 2021

Mr. Devusinh Chauhan, Minister of State of Ministry of Communications, launched Production Linked Incentive (PLI) Scheme for Telecom and Networking Products. Ms. 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 productsand 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 Rs. 12,195 crore. The scheme is effective from 1st April, 2021. Investment made by successful applicants in India from 1st 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:

  •  Coral Telecom Limited
  •  Ehoome IoT Private Limited
  •  Elcom Innovations Private Limited
  •  Frog Cellsat Limited
  •  GDN Enterprises Private Limited
  •  GX India Private Limited
  •  Lekha Wireless Solutions Pvt Ltd
  •  Panache Digilife Limited
  •  Priyaraj Electronics Limited
  •  Sixth Energy Technologies Private Limited
  •  Skyquad Electronics and Appliances Private Limited
  •  STL Networks Limited
  •  Surbhi Satcom Private Limited
  •  Synegra Ems Limited
  •  Systrome Technologies Private Limited
  •  Tianyin Worldtech India Private Limited

The eligible domestic companies under Non MSME category are

  •  Akashastha Technologies Private Limited,
  •  Dixon Electro Appliances Private Limited,
  •  HFCL Technologies Private Limited,
  •  ITI Limited,
  •  Neolync Tele Communications Private Limited,
  •  Syrma Technology Pvt Ltd,
  •  Tejas Networks Limited and
  •  VVDN Technologies Private Limited.

The eligible global companies under Non MSME category are

  •  Commscope India Private Limited,
  •  Flextronics Technologies (India) Pvt Limited
  •  Foxconn Technology (India) Private Limited,
  •  Jabil Circuit India Private Limited,
  •  Nokia Solutions and Networks India Private Ltd,
  •  Rising Stars Hi-Tech Private Limited,
  •  Sanmina-SCI India Private Limited.

As per commitments given by applicants, these 31 applicants are expected to invest Rs. 3345 crore in the next 4 years and generate incremental employment of more than 40,000 people with expected an incremental production of around Rs. 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”.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.