DoT to meet telecom gear makers on Jun 3 on product link incentive scheme

The Department of Telecom has called a meeting of telecom equipment makers, including foreign firms – Nokia, Ericsson, Samsung, and Huawei, to discuss formulation of product link incentive scheme on June 3, according to official sources. A similar scheme was notified by the government on April 1, with an incentive of about Rs 41,000 crore to push electronics manufacturing in the country with special focus on the mobile devices segment.

“The DoT has called a meeting of telecom equipment makers on June 3 to discuss a PLI scheme for the sector. The intention of the government is to push manufacturing of products in the 5G space and curb the imports. The meeting will be held online,” one of the sources told PTI. The draft of the scheme is almost ready and the meeting will be around the companies’ roadmap if they get incentive support from the government.

According to industry sources, the draft proposes 4 to 6 percent incentives of about Rs 10,000 crore on incremental sales of goods manufactured in India over a period of five years. “The intention of the government is also to attract companies who are looking to shift their base or portion of manufacturing from China to any alternate destination,” a source said.

—Devdiscourse