HFCL Limited has announced that they have received an approval to avail incentive upto Rs.652.79 crore from Small Industries Development Bank of India (SIDBI), Project Management Agency (PMA) and Competent Authority designated by the Government of India on its application for participation in production-linked incentive (PLI) scheme. Supporting Government’s ‘Make in India’ initiative, HFCL has participated in the PLI scheme with an aim to build a digital India driven by innovation and growth and will offer equal social and economic development.
There has been a commitment of Rs. 4115 crore of investments from all the participating companies under the PLI Scheme, out of which, HFCL has committed an investment of ~Rs.425 crore towards development and manufacture of various eligible products under the PLI scheme. The incentive amount will be distributed over a period of 5 years commencing from FY 2022-23 to 2026-27, allowing HFCL to be more competitive globally by adding margin-accretive products under its portfolio.
Launched by the Government in 2020, PLI Scheme supports domestic companies in the development and deployment of futuristic equipment and solutions in the telecom industry with an objetive to boost indigenous product development, domestic manufacturing, investments and export of the 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.
Commenting on this development, Mahendra Nahata, MD, HFCL, said, “We are delighted to receive the approval on the Production Linked Incentive (PLI) Scheme, and are extremely thankful to our Government for their continuous efforts towards making the ‘Make in India’ project a success. This approval worth Rs. 652.79 crore will help us in improving our margins and enable us to emerge as a front-runner in this competitive global market. Given our current focus on R&D, we are committed to invest ~Rs.425 crore for development and manufacturing of futuristic telecom products. We aim to make India a global manufacturing hub for Telecom and Networking Products and believe that this initiative will enable our nation in expanding the manufacturing and development of the indigenous latest technology products, taking us closer towards an Atmanirbhar Bharat. On the backdrop of this healthy growth, we at HFCL aim to transform as a product-led enterprise that innovates and manufactures robust yet local telecom equipment and solutions.”