Indian Government Has Accepted 31 Proposals Under PLI for Telecom Sector

The Department of Telecommunications just approved the investment proposals of as many as 31 companies that account for Rs 3,345 crore in four years under the PLI (Production Linked Incentive) scheme for telecom. The investment of Rs 3,345 crore in the coming 4.5 years is the beginning. The government is eyeing to help the players in the telecom industry as a catalyst. This was announced by Devusinh Chauhan, the Minister of State for Communications, noted a PTI report.

The 31 companies that will get the investment comprise 16 MSMEs and 15 non-MSMEs. Of the latter, there will be 7 global companies and 8 domestic companies.

DoT’s PLI Scheme for Telcos

DoT has announced the PLI scheme for telecom operators and it is worth Rs 12,195 crore. This scheme was announced on February 24, 2021. The same will be spread over five years ranging from the fiscal year 2021-22 to 2025-26. The scheme will encourage the local manufacturing of telecom equipment in the country.

This PLI scheme is expected to enable the production of almost 1.82 lakh crore and invest nearly Rs 3,354 crore. This is envisaged to e used for over four years and create additional employment of over 40,000 staff. This was announced in an official statement by the telecom department. Furthermore, this scheme announced for the telecom sector includes manufacturing of next-generation 4G and 5G radio access network, wireless equipment, transmission equipment, and customer premise equipment, routers, access devices, and switches.

Rajesh Tuli, the MD of Coral Telecom stated that the company would be handicapped sans the PLI scheme. Besides DoT, the homegrown telecom gear makers’ body TEMA (Telecom Equipment Manufacturers Association of India) said that the scheme will boost the R&D and innovations and encourage the local manufacturing of both 4G and 5G that will enable the country to progress into a global supplier.

As per TEMA, this move is expected to create both direct and indirect employment opportunities for nearly 1 lakh individuals in the coming five years. Terming it to be a landmark decision, NK Goyal, Chairman Emeritus TEMA stated that there has been no bias between the global and local companies as both are chosen for this scheme.


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