Govt nod to 42 firms for design-led PLI scheme

According to the ministry of communications, all companies will get 4-7% incentive on incremental sales of the manufactured goods, while 17 firms applied for an additional incentive of 1% for design-led manufacturing, that will get 5-8% incentive. The companies include Nokia, Samsung, Ericsson’s partner Jabil, Flextronics, Tejas Networks, VVDN and HFCL. “It (investment) is expected to generate additional sales of ₹2.45 trillion and create additional employment of 44,000 over the scheme period,” the ministry said in a statement on Monday. “India is poised to emerge as a design and manufacturing hub for telecom and networking equipment.”

Finance minister Nirmala Sitharaman had announced a design-led PLI scheme for telecom and networking products in her budget, to create a robust domestic value chain, which provided an additional incentive of 1% over and above existing incentives for products designed and manufactured in India. Design-led PLI scheme was launched in June and applications were invited for availing the benefits for five years starting 1 April. Existing firms under the PLI scheme for telecom and networking products were allowed to add products and apply for the design-led incentives, besides moving the five -year period by a year.