There Has Been a Huge Vacuum in the Telecom Equipment Manufacturing: ICEA


Department of Telecom (DoT) had recently said that the PLI Scheme will be implemented within the overall financial limits of Rs 12,195 Crores

India Cellular and Electronics Association has welcomed the recent announcement on the PLI scheme and its guidelines for the telecom sector worth Rs 12,195 crores over five years for telecom equipment manufacturing in India to promote Make-In-India gear.

This move, as per ICEA, will help India to become a strong destination for the manufacturing of telecom equipment. The application window for participants to apply will open from 4th June 2021. The DoT will grant approval to 10 eligible applicants each in MSME and Non-MSME categories. Out of the ten applicants in the non-MSME category, at least three applicants will be eligible domestic companies.

“There has been a huge vacuum in the telecom equipment manufacturing and we are delighted that it is a good beginning by the Government of India (GOI) to build the manufacturing capabilities in this sector. This PLI scheme by the DoT has energised the global telecom equipment companies and will encourage them to participate & scale up their production activities in India for the domestic and export market,” said Pankaj Mohindroo, Chairman, ICEA.

He added, “The policy will encourage attracting large investments and employment in the telecom sector. This would give a boost to Hon’ble Prime Minister Narendra Modi’s vision of Atmanirbhar Bharat.”

Department of Telecom (DoT) had recently said that the PLI Scheme will be implemented within the overall financial limits of Rs 12,195 Crores for implementation of the scheme over a period of five years. For MSMEs, financial allocation will be Rs 1,000 crores.

The scheme stipulates a minimum investment threshold of Rs 10 Crores for MSME and Rs 100 Crores for non-MSME applicants. DoT added that it will grant approvals to 10 eligible applications each in MSME & non-MSME categories.

“We also need to support Indian companies with suitable policy intervention that will help them to build domestic R&D and design capabilities & to create an innovative product that can compete on the global stage. This will help the Indian champion companies to become globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain,” said Mohindroo.

As per the guidelines, investments made by successful applicants in India from April 1, 2021, onwards and up to FY 2024-2025 shall be eligible for the scheme, subject to qualifying incremental annual thresholds. The support under the scheme shall be provided for a period of five years, i.e. from FY 2021-22 to FY 2025-26.


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