Agarwal, who was made CEO of VVdN following the untimely demise of Bhupinder Saharan, said that the guidelines of the scheme seem suitable for someone like VVDN
VVDN Technologies has plans to invest big in the recently announced PLI scheme for telecom gear. Puneet Agarwal, the new appointed CEO of VVDN in an interaction with Economic Times noted that VVDN’s investment will be much larger than what’s mentioned in the PLI scheme guidelines.
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. DoT had 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 5 years. For MSMEs, financial allocation will be Rs 1,000 crores.
Agarwal, who was made CEO following the untimely demise of Bhupender Saharan, also said that the guidelines of the scheme seem suitable for someone like VVDN. The company in the process of investing also plans to hire more and more menpower.
It is to be noted here that telecom equipment manufacturers like Nokia and HFCL will also be partaking in the telecom PLI scheme. Nokia India’s Twitter handle said, “Nokia is committed to this vision with our Chennai factory that manufactures telecom equipment from 2G to 5G, making for India and the world.”
Indian telecom company HFCL’s Managing Director Mahendra Nahata said that the scheme will make telecom equipment manufacturing in the country competitive, reduce imports and increase exports. Several domestic and foreign telecom gear makers have appreciated the initiative, calling the scheme a boost for the government’s Atmanirbhar Bharat (self-reliant India) vision.
“With the 5G revolution set to kickstart in India, we will require new investments, software and hardware development. The PLI scheme will complement the 5G ecosystem. By the time we see an increment in demand, the telecom manufacturing sector will be ready with new products and innovations,” Telecom Equipment and Services Export Promotion Council (TEPC) Chairman Sandeep Aggarwal had said earlier.
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.