Local Indian companies such as Tejas Networks, Coral Telecom, HFCL, VVDN and Dixon Technologies also applied under PLI scheme.
37 telecommunication suppliers and contract manufacturers, including Nokia, Cisco, Flex, Foxconn have applied to manufacture telecommunications and networking equipment. Moreover this is under the Production Related Incentive (PLI scheme ). Local companies such as Tejas Networks, Coral Telecom, HFCL, VVDN, and Dixon Technologies have also applied to the program.
The Department of Telecommunications (DoT) will select 20 companies from these applicants with basis on competitive investment. This means companies with higher investments will have a better chance of being selected. The solution covers products such as next-gen 4G/5G wireless access networks, IoT devices, client devices, routers and switches.
Reliance Jio Infocomm stated that Samsung Electronics of South Korea decided not to apply for the program.
This is because Samsung has a FTA route through which it continues to import equipment for its sole customer. Thus it requires senior investment experts. Swedish equipment supplier Ericsson has applied for the program through Jabil, which produces telecommunications equipment for a Pune-based company.
The additional investment under PLI scheme will expand facilities in Pune, where we currently manufacture 4G and 5G telecommunications equipment. This is a very encouraging move by the government to make India a global manufacturing center as commented upon by Sunil Vachani, CEO of Nokia.
Nahata said that HFCL plans to manufacture 5G RAN, small cells, etc. according to the plan.
In June, DoT issued detailed guidelines and opened applications for manufacturers of telecommunications equipment and network products under PLI program. Investments made by selected applicants in India from April 1 2021 to 2024 will be eligible for award. However, they must meet eligible annual incremental threshold.