Dixon-Bharti JV To Invest Around Rs 200 Crore To Manufacture CPEs Under Telecom PLI Scheme


The said JV will start production of customer-provided equipment (CPE) through their manufacturing unit in Punjab

Telecommunications sector

Homegrown electronics manufacturer Dixon Technologies is applying for the telecom equipment manufacturing production-linked incentive (PLI) scheme through a joint venture that it has formed with conglomerate Bharti Enterprises and will invest Rs 200 crore to Rs 250 crore rupees for the same. 

In April, Dixon and Bharti had announced that it signed an agreement to form a joint venture that would file applications for the PLI scheme. Although Dixon did not finalise which of its various subsidiaries would be forming the JV, it did mention Dixon Electro Appliances – its domestic appliance manufacturing unit formed in 2020 – to be a plausible choice. Dixon would hold 74 per cent stake in the JV, while the rest would be held by Bharti. 

Now, an Economic Times report has confirmed that the company has applied for the scheme through the said JV which will start production of customer-provided equipment (CPE) through their manufacturing unit in Punjab.

“We have applied for the scheme. We are excited to be looking at the opportunity to get into telecom manufacturing. We are partnering with Bharti for CPE devices and other telecom products in future. We are looking forward to an early announcement from the DoT,” Dixon Technologies executive chairman Sunil Vachani told the publication.

The Dixon-Bharti JV is among the 37 companies that have applied for the government’s Rs 12,195 crore telecom PLI scheme. Tejas Networks, Coral Telecom, HFCL, VVDN are among the domestic players that have applied. Dixon had also previously applied for the PLI scheme for smartphone manufacturing and IT hardware manufacturing.

Under the scheme, 10 large manufacturers and 10 MSMEs will be selected to receive incentives over a five-year period by achieving stipulated production targets. Of this, Rs 1,000 crore has been set aside for the 10 MSMEs, three out of which will be domestic companies.

Telecom equipment that would be covered under the scheme includes core transmission equipment, 4G/5G next-generation radio access network and wireless equipment, access and customer premises equipment (CPE), Internet of things (IoT) access devices, other wireless equipment and enterprise equipment like switches and routers.


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