The Department of Telecommunications may issue guidelines on the implementation of the Production Based Incentive (PLI) scheme for manufacturers in the region within about a week. Also, according to government officials, the department can start inviting applications for the PLI scheme within a week. Ericsson and Nokia have expressed a desire to expand their operations in India. Apart from this, foreign companies like Samsung, Cisco, Siena and Foxconn have shown interest in manufacturing telecom and networking products for the domestic market and export in India.
An official told news agency PTI, “The government has already approved production-based incentives in the telecom sector. The Department of Telecom is ready with its guidelines, application format and incentive allocation for its implementation. It will be published on the website of the Department of Telecommunications in a week.
The production-based incentive scheme for telecom and networking products was notified on 24 February 2021 by the Department of Telecommunications. Under this, there is a provision to spend Rs 12,195 crore in five years.
The telecom equipment manufacturing scheme in India is expected to give impetus to the manufacturing of equipment worth Rs 2.44 lakh crore. This will, directly and indirectly, provide employment to about 40,000 people. The scheme is expected to invest over Rs 3,000 crore. Also, it is expected to generate tax revenue of about Rs 17,000 crore.