To produce qualifying telecom items, domestic telecom equipment manufacturer HFCL intends to invest Rs 425 crore under the Production Linked Incentive (PLI) scheme.
In a regulatory filing on Tuesday, HFCL stated that the Small Industries Development Bank of India (SIDBI), the Project Management Agency (PMA), and the Competent Authority designated by the Centre had cleared the business to earn an incentive of up to Rs 652.79 crore.
The announcement from HFCL comes a day after the Ministry of Communications enlarged the PLI scheme for telecom and networking products to include 42 businesses, including 28 MSMEs, who have been approved to get incentives for an overall investment of Rs 4,115 crore.
A further 1% incentive under the design-led manufacturing criteria has been requested by 17 of these enterprises. In addition to HFCL, the chosen companies also include domestic firms ITI, VVDN, and Tejas Networks as well as international competitors Samsung, Nokia, Jabil, Rising Star, and Flextronics.
Around the course of the five-year scheme, the ministry forecasts an increase in sales of Rs 2.45 lakh crore and the creation of over 44,000 new employment.
By integrating “margin-accretive products” in its portfolio, HFCL said the incentives that will be given out from FY2022-23 to 2026-27 will help it become competitive on a worldwide basis.
The PLI scheme was introduced by the Central government in 2020 with the aim of promoting domestic product development, domestic manufacturing, investments, and export of telecom and networking products. It assists domestic companies in the development and deployment of equipment and solutions in the telecom industry.
The Union Budget 2022–23 gave this plan for building a strong 5G ecosystem in India more emphasis by adding an extra incentive of 1% on top of the current incentives for goods that are designed and made in India.