HFCL to invest Rs 425 crore in telecom PLI scheme

Homegrown telecom gear maker HFCL plans to invest Rs 425 crore under the PLI scheme to manufacture eligible telecom products.

The company said, “HFCL has committed an investment of around Rs 425 crore towards development and manufacture of various eligible products under the PLI scheme. The incentive amount will be distributed over a period of 5 years commencing from FY 2022-23 to 2026-27, allowing HFCL to be more competitive globally by adding margin-accretive products under its portfolio.”

HFCL has been approved to receive an incentive of up to Rs 652.79 crore from the Small Industries Development Bank of India (SIDBI), the Project Management Agency (PMA) and Competent Authority designated by the Centre, on the company’s application for participation in the PLI scheme. The incentives will enable the company to become competitive at a global scale by including margin-accretive products in its portfolio.

HFCL Managing Director Mahendra Nahata said, “This approval worth Rs 652.79 crore will help us in improving our margins and enable us to emerge as a front-runner in this competitive global market. Given our current focus on research and development, we are committed to invest around Rs 425 crore for development and manufacturing of futuristic telecom products.”