The DoT is expected to announce the list of all companies that have been selected in the PLI scheme.
The selected companies will manufacture telecom equipment in the country. Notably, the ministry has received an application from 31 companies, including Foxconn, Jabil, Nokia, Cisco, and more.
-DoT to announce selected companies list soon-
The government has already completed the procedure and might come up with companies list soon.
In addition, the Department of Telecommunication is expected to select 10 companies from MSME and 10 non-MSME, where three will be domestic firms. Besides, the companies will be selected from highest to lowest investment size, reports Financial Express.
The entire PLI scheme offers incentives between 4 percent and 7 percent. 2019-20 is known as the base year of incremental sales for manufacturing goods. However, the investment size of the MSME is suggested at Rs. 10 crores.
-PLI scheme for wearables-
Apart from the telecom and mobile sector, the government is likely to announce a production-linked incentive scheme for wearables and hearables products.
The main behind announcing these policies is to increase manufacturing in the country.
“We are holding consultations with the industry regarding the PLI scheme. The outlay for the scheme will be decided based on the level of manufacturing commitment by the companies. We want to achieve manufacturing to the tune of $15-$20 billion for the next four-five years,” said an official.
-What is production-linked incentive scheme-
Under the PLI scheme, the government has identified 13 sectors. The scheme is expected to provide incentives to the manufacturing sector and is likely to produce goods worth $500 billion in five years as per Commerce Ministry. The scheme has been approved by the cabinet already.
“The PLI scheme is the textbook example of successful government enablement of a laggard sector. PLI 1 was aimed at mobile handset assembly. In 2014, 50 million handsets were made in India representing 19 percent of our national demand. In 2020, 260 million handsets were made in India representing 96 percent of national demand,” Omer Basith, Co-founder & CEO, Virtual Forest was quoted by FE online.
This scheme is expected to help the industry increase production of mobiles and telecom equipment in India. Besides, the scheme is likely to reduce our dependence on imports. Gizbot