NEW DELHI: Homegrown telecom gear maker HFCL plans to invest Rs 425 crore under the Production Linked Incentive (PLI) scheme to manufacture eligible telecom products.
HFCL has been approved to receive an incentive of up to Rs 625.79 crore from the Small Industries Development Bank of India (SIDBI), the Project Management Agency (PMA) and Competent Authority designated by the Centre, on the company’s application for participation in the PLI scheme, it said in a regulatory filing on Tuesday.
HFCL’s statement comes a day after the Ministry of Communications expanded the PLI scheme for telecom and networking products with a total of 42 companies, including 28 medium and small enterprises (MSMEs), that have been cleared for receiving incentives for a total investment of Rs 4,115 crore.
Of these, 17 companies have applied for an additional 1% incentive under the design-led manufacturing criteria. In addition to HFCL, selected companies include global players Samsung, Nokia, Jabil, Rising Star, and Flextronics, as well as, homegrown ITI, VVDN, and Tejas Networks, among others.
Additional sales of Rs 2.45 lakh crore are expected to be generated while more than 44,000 additional jobs are likely to be created over the five-year scheme period, the ministry said.
HFCL said the incentives that will be distributed from FY2022-23 to 2026-27 will enable it to become competitive at a global scale by including “margin-accretive products” in its portfolio.
Launched by the Central government in 2020, the PLI scheme supports domestic companies in the development and deployment of equipment and solutions in the telecom industry with an objective to boost indigenous product development, domestic manufacturing, investments and export of telecom and networking products.
The Union Budget 2022-23 further laid thrust on this scheme for the creation of a strong 5G ecosystem in India by providing an additional incentive of 1% over and above the existing incentives for products that are designed and manufactured in India.