JOIN USGovt to roll out PLI scheme to boost domestic telecom equipment production
The Department of Telecom is working on rolling out a Rs 15,000-crore worth production-linked incentive (PLI) scheme to promote the domestic production of telecom equipment.
The DoT is preparing the draft cabinet note to provide financial incentives to companies that produce 5G telecom equipment. The scheme is expected to be launched in 3 to 4 weeks, said a DoT official.
The scheme's primary aim would be to boost the domestic production of telecom equipment and reduce the dependence of Chinese suppliers.
State-run Indian Telephone Industries Limited (ITI), Sterlite Technology, Tejas Network, and Himachal Futuristic Communications Ltd. (HFCL) are some of the domestic players involved in the manufacturing of telecom equipment.
The Ministry of Electronics and Information Technology already has a similar scheme worth Rs 40,000 crore to boost mobile phone manufacturing.
As many as 22 domestic and international firms, including iPhone maker Apple's contract manufacturers as well as Samsung, Lava and Dixon have submitted proposals under the scheme.
The government had also asked BSNL and MTNL to not use Chinese telecom equipment for their 4G network after a violent clash between the Indian and Chinese armies in Eastern Ladakh.
BSNL had cancelled its tender of 4G network suppliers and is working to invite fresh bids which will likely give opportunities to domestic manufacturers. Earlier when BSNL floated the tender, domestic manufacturers had complained that the tender conditions were in favour of the Chinese players.