The Digital Communications Commission (DCC) has approved the Production Linked Incentive (PLI) scheme guidelines for telecom equipment manufacturing, as per reports. Following the approval, the telecom department (DoT) will now seek final approval from the cabinet in coming weeks while the process to invite applications from companies could start from January 2021 upon approval from the cabinet. The scheme will cover core transmission equipment, 4G/5G and next-gen radio access network and wireless equipment, access and customer premise equipment (CPE), Internet of Things (IoT) access devices and enterprise equipment like switches and router
People involved in framing the policy said that the scheme will focus on attracting FDI and to significantly increase the size of the existing domestic gear manufacturing industry. Additionally, the policy will drive Intellectual Property (IP) and design-led manufacturing so that the industry could compete globally besides focusing on leveraging the research and development (R&D) pool and talent in the contry.
People familiar with the matter said that the government has rejected demands of European gear vendors Nokia and Ericsson to include their existing manufacturing related investments under the policy. These companies also wanted India to focus on bringing the component ecosystem under the new scheme.
Industry bodies had previously said that the scheme can result in Rs 2 lakh crore of production over the next five years, as it would speed up India’s emergence as a global 5G gear manufacturing hub, boost network gear exports and create a robust components ecosystem.