Telecom And Networking Products Manufacturing In India


Posted: 26th October 2021 10:19

The PLI Scheme for Telecom and Networking Products Manufacturing in India was announced earlier in the year. Launched by the Department of Telecommunications with a total outlay of US $1.6 billion, the PLI Scheme beneficiaries have been finalized.

India’s telecommunication sector is the latest to announce beneficiaries to its production-linked incentive scheme, first announced in 2021 Union Budget.

Investments made by successful applicants from April 1st 2021 onwards and up to FY 2024-25 are eligible for PLI benefits, subject to qualifying incremental annual thresholds.

Who Are The Beneficiaries?

A total of 31 companies – 16 micro, small and medium enterprises (MSMEs) and 15 Non-MSMEs (eight domestic companies and seven global companies) have been found eligible by the DoT under the scheme.

The eligible PLI beneficiaries for telecom and networking products manufacturing are indicated in the list below:

MSME Category

Non-MSME Category (Domestic Companies)

Non-MSME (Global Companies)

Coral Telecom Limited

Akashastha Technologies Private Limited,

Commscope India Private Limited,

Ehoome IoT Private Limited

Dixon Electro Appliances Private Limited,

Flextronics Technologies (India) Pvt Limited

Elcom Innovations Private Limited

HFCL Technologies Private Limited,

Foxconn Technology (India) Private Limited,

Frog Cellsat Limited

ITI Limited,

Jabil Circuit India Private Limited,

GDN Enterprises Private Limited

Neolync Tele Communications Private Limited,

Nokia Solutions and Networks India Private Ltd,

GX India Private Limited

Syrma Technology Pvt Ltd,

Rising Stars Hi-Tech Private Limited,

Lekha Wireless Solutions Pvt Ltd

Tejas Networks Limited and

Sanmina-SCI India Private Limited.

Panache Digilife Limited

VVDN Technologies Private Limited.

 

Priyaraj Electronics Limited

 

 

Sixth Energy Technologies Private Limited

 

 

Skyquad Electronics and Appliances Private Limited

 

 

STL Networks Limited

 

 

Surbhi Satcom Private Limited

 

 

Synegra Ems Limited

 

 

Systrome Technologies Private Limited

 

 

Tianyin Worldtech India Private Limited

 

 


These 31 PLI beneficiaries are expected to invest US $447 million in the next four years and generate incremental employment for more than 40,000 people.

The PLI scheme seeks to boost domestic research and development of new products on which 15% of the committed investment could be invested.

How The PLI Scheme Works

The production linked incentive scheme aims to promote telecom and networking products manufacturing in India.

Financial incentives in percentages of sales are offered to attract investments and boost manufacturing in the target segments of telecom and networking products.

The PLI Scheme is also expected to boost the exports of telecom and networking products “Made in India”.

Eligibility

Eligibility to benefit under the scheme is subject to achievement of a minimum threshold of cumulative incremental investment over a period of four years and incremental sales of manufactured goods over the base year.

Applicants are expected to meet all the minimum threshold conditions to be eligible for disbursement of incentive.

The company/entity can also invest in single or multiple eligible products to meet minimum incremental investment and sales threshold.

The minimum investment threshold for MSMEs is US $1.3 million and US $13.3 million for others. Land and building cost will not be counted as investment.

Additionally, eligibility under PLI Scheme will not affect eligibility under any other scheme being implemented by State/UT Governments.

Incentives

The applicable incentive percentage for MSMEs is seven percent for Year-1 and Year-2, six percent for Year-3, five percent for Year-4, and four percent for Year-5 on eligible sales over the base year.

For categories other than MSMEs, the applicable incentive percentage is six percent for Year-1 and 2, five percent for Year-3 and 4, and four percent for Year-5 on eligible sales over the base year.

The incentives will be applicable on sales of manufactured finished goods net of taxes, discounts, and commissions, etc. (as distinct from traded goods) – subject to ceilings and the company meeting the cumulative investment criteria.

PLI Target List Of Specified Telecom And Networking Products

S. No.             

Goods

1

Core Transmission Equipment

2

4G/5G, Next Generation Radio Access Network and Wireless Equipment

3

Access & Customer Premises Equipment (CPE), Internet of Things (IoT) Access Devices and Other Wireless Equipment.

4

Enterprise equipment: Switches, Routers

5

Other products decided by EGoS (Empowered Group of Secretaries)

India’s Telecom Landscape

Investments And Key Developments

India is the world’s second-largest telecommunications market, having a subscriber base of about 1.16 billion. The country has witnessed strong registration growth over the last 10 years and daily increase to the subscriber base.

This proves the sector’s investment appeal; foreign direct investment (FDI) into India’s telecom sector during April 2000 – March 2021 totaled US $37.66 billion, according to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT).

Recent notable developments in the sector include:

Foreign Investment In India’s Telecom Equipment Manufacturing

Sl. No

Name

Location

Nature Of Project

1.

(i)Ericsson

Jaipur, Rajasthan

Facility for manufacturing GSM base stations and mobile switching equipment

 

(ii)Ericsson

Chennai, Tamil Nadu

R&D facility and Global Service Delivery Centre

 

(iii)Ericsson

Gurgaon, Haryana

R&D facility and Global Service Delivery Centre

2.

Elcoteq

Bangalore, Karnataka

Telecom manufacturing

3.

LG

Pune, Maharashtra and Noida, Uttar Pradesh

Mobile handsets etc.

4.

(i)Nokia

Chennai, Tamil Nadu

Mobile handsets manufacturing

 

(ii)Nokia

Chennai, Tamil Nadu

Global Network Operation Centre for customers in Asia Pacific Region, Europe, Middle East, and Africa

5.

Aspocom

Chennai, Tamil Nadu

High density interconnections PCB manufacturing plant

6.

Salcomp

Chennai, Tamil Nadu

Mobile phone chargers

7.

HonHai (FoxConn) Precision Industry Co.

Chennai, Tamil Nadu

Manufacturing of mobile handsets and components and electronic hardware and related services

8.

Perlos

Chennai, Tamil Nadu

Handset mechanics

9.

Laird Technologies

Chennai, Tamil Nadu

Manufacturing of mobile phone accessories

10.

Alcatel

Chennai, Tamil Nadu

WiMax Centre etc.

11.

Samsung

Manesar and Gurgaon, Haryana

Handset manufacturing

12.

Flextronics

Chennai, Tamil Nadu

  • Manufacturing of telecom hardware, such as cell phones, set top boxes, optical networking systems etc.
  • Mechanical and system integration of base stations

13.

(i)Motorola

Chennai, Tamil Nadu

Manufacturing of Motorola’s first Made in India low cost GSM phone

 

(ii)Motorola

Chennai, Tamil Nadu

Manufacturing of handsets

14.

Nokia Siemens Network

Chennai, Tamil Nadu

Wireless network equipment

15.

Velankani Information System
Pvt Ltd.

Sriperumbedur and Kanchipuram, Tamil Nadu

Electronic hardware and software, including ITeS

16.

Andrew Telecommunications India Pvt. Ltd.

Goa

Antenna and fiber cables, patch cords, and fiber terminations


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