Telecom PLI: Govt releases Rs 331.86 crore to 18 firms, Jabil and Nokia lead

As of October 31, 2023, the Union Government has disbursed a total of Rs 331.86 crore in incentives under the Telecom Production-Linked Incentive (PLI) scheme to 18 out of the 42 approved beneficiaries. This was revealed by Pemmasani Chandra Sekhar, the Minister of State for Telecom, in a written response to the Lok Sabha on December 18. The PLI scheme aims to boost domestic production in the telecom and networking sector, driving investments, increasing local manufacturing, and promoting exports.

According to the data shared by the Minister, these 18 beneficiaries have collectively reported the creation of 25,359 new jobs and total sales of Rs 68,708 crore, including Rs 13,007 crore in exports. These figures indicate a substantial contribution to India’s economy, particularly in the manufacturing and export sectors.

Leading the list of recipients is Jabil Circuit India, which has received Rs 78.62 crore in incentives, followed by Nokia Solutions and Networks India Pvt Ltd, which was granted Rs 46.92 crore. Tejas Networks has secured Rs 32.66 crore, and Flextronics Technologies (India) received Rs 30.6 crore. Other prominent beneficiaries include Commscope India (Rs 25.95 crore), NeoLync Tele Communications (Rs 21.79 crore), and Rising Stars Hi-Tech (Rs 20.33 crore).

Sanmina-SCI India, a company mainly owned by a Reliance Industries group firm, received Rs 12 crore, while GX India was granted Rs 11.74 crore in incentives. Several smaller companies received less than Rs 10 crore each in support.

Of the 42 beneficiaries under the scheme, 28 are micro, small, and medium enterprises (MSMEs). The beneficiaries have collectively committed to investing Rs 4,014 crore under the PLI scheme. Of this, non-MSMEs have pledged an investment of Rs 3,629 crore, while MSMEs have committed to investing Rs 369 crore by October 31.

The Telecom PLI scheme is part of India’s broader strategy to strengthen its telecom manufacturing ecosystem, make the country self-reliant in telecom production, and reduce dependence on imports. By incentivizing production and fostering innovation in this critical sector, the government aims to make India a global leader in telecom manufacturing while creating employment opportunities and promoting economic growth.