NEW DELHI: The Department of Telecommunications on Thursday approved investment proposals of 31 companies amounting to Rs 3,345 crore over the next 4 years, under the Production Linked Incentive (PLI) scheme for telecom.

“The investment of Rs 3,345 crore in the next 4.5 years is just a beginning. Government is helping you (industry players) as a catalyst,” Minister of State for Communications Devusinh Chauhan was quoted as saying by the news agency PTI.

These 31 companies comprise 31 companies 16 MSMEs and 15 non-MSMEs (8 domestic and 7 global companies).

Companies eligible under the MSME category are — Coral Telecom, Elcom Innovations, Frog Cellsat, GDN Enterprises, GX India, Lekha Wireless Solutions, Panache Digilife, STL Networks, and eight others.

The eligible domestic companies under the non-MSME category are — Akashastha Technologies, Dixon Technologies, HFCL, ITI Limited, Neolync, Syrma Technology, Tejas Networks, and VVDN Technologies.

The eligible global companies under the non-MSME category are — Commscope, Flextronics, Foxconn, Jabil Circuit, Nokia Solutions and Networks India, Rising Stars Hi-Tech, and Sanmina-SCI India.

The DoT had come out with the PLI scheme of Rs 12,195 crore outlay on February 24, 2021, spread over five years (2021-22 to 2025-26), to encourage domestic manufacturing of telecom equipment.

The scheme is expected to facilitate the production of nearly 1.82 lakh crore, and investment of about Rs 3,345-crore which is envisaged in the sector for over four years, creating additional employment of more than 40,000 people, the telecom department had said in a note.

The scheme is expected to additionally employ as many as 40,000 individuals in the telecom sector.

The scheme for the telecom sector includes manufacturing of transmission equipment, next-generation (4G and 5G) radio access network and wireless equipment, customer premise equipment (CPE), access devices, routers, and switches.

Coral Telecom MD Rajesh Tuli while highlighting the inclusion of MSMEs said the company would have been “handicapped” without the scheme.
Meanwhile, hailing the approval of proposals, homegrown telecom gear makers’ body Telecom Equipment Manufacturers Association of India (TEMA) said the scheme will boost research and development (R&D), innovations, and encourage the domestic manufacturing of 4G and 5G which will enable India to become a global supplier.

TEMA expects this will create direct and indirect employment opportunities for about 1 lakh individuals over the next five years.

“This step is in the right direction to make India Atma Nirbhar Bharat in Telecom Sector. The decision has come right time and investment of the order of Rs 5,000 crores has been committed, as besides PLI beneficiaries Rs 3,345 crores, there would be an investment in ancillaries and startups of about Rs 1,600 Crores,” said NK Goyal, Chairman Emeritus TEMA.

“This will boost R&D, Innovations and help in domestic manufacturing of 4G and 5G. India will soon be suppliers to world for 4G and 5G. The expected turnover of more than Rs 1.82 lakh crores will raise Indian manufacturing to global level,” Goyal added.

Terming it a “landmark decision”, Goyal added that MSMEs have been put at par with large and multinational companies, with the announcement for 16 MSMEs and 15 non-MSMEs at the same time, with the MSME getting 1% additional benefit.

“There has been equal treatment between domestic and global companies as both got 8 and 7 winners respectively,” he said.