November 24, 2022
The Department of Telecommunications (DoT) is planning to assist all 42 companies selected under the PLI scheme
Due to national security concerns, the government has been recently promoting self-reliance across various sectors and telecom is one of them
With an increase in demand for 5G equipment, various companies have increased their investment towards manufacturing them under the PLI scheme
Sales of INR 2.45 trillion and more than 44,000 new jobs are expected to be created over the five-year period of the scheme
To increase local manufacturing, the Indian government aims to provide assistance to companies selected under the telecom Product Linked Incentive (PLI), according to media reports.
The reports said that the Department of Telecommunications (DoT) is planning to assist all 42 companies selected under the PLI scheme, with issues related to manufacturing, finance and supply chain planning, among others.
Due to national security concerns, the government has been recently promoting self-reliance across various sectors and telecom is one of them. As a part of the initiative, only Indian companies were allowed to participate in bidding to roll out the 4G network of state-run Bharat Sanchar Nigam Ltd (BSNL).
With an increase in demand for 5G equipment, various companies have increased their investment towards manufacturing them under the PLI scheme. Additionally, sales of INR 2.45 trillion and more than 44,000 new jobs are expected to be created over the five-year period of the scheme.
According to the reports, 42 firms, including 28 medium and small enterprises, have been selected for the updated telecom PLI scheme and they have made a total investment commitment of INR 4,115 crore. Last year, 31 companies had been selected with projected investments of INR 3,344.90 crore.
The PLI scheme was launched by the DoT in February 2021 with an outlay of INR 12,195 crore over five years. About 33% of the amount has been allocated for additional incentives.
With the further penetration of 5G, India’s telecom will turn into one of the country’s major economic drivers.
Source: Economic Times