The best manufacturers such as Samsung, HFCL LTD, Netweb Technologies, Kaynes International, Optiemus Unit GDN Enterprises and State-FEAD ITI LTD have not yet announced any incentives because they either started to produce or were unable to meet the goals. Result: Manufacturers have so far demanded only a tenth of incentives.
Request for the right to information (RTI) found that the scheme was paid £1 162.04 crore by the end of FY25, against £12,195 crore approved for five years. While 42 companies were selected, only half demanded incentives. The scheme was introduced in February 2021 to motivate local equipment, such as network switches, transmission equipment and set-top boxes.
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According to industrial executives, it includes reasons for weak books and demand and the inability to meet the set goals of investment and sales.
‘Missed opportunity’
“The reason many players missed the opportunity is due to the market structure compared to the PLI smartphone structure,” said the consultant, who works with companies. Telecom PLI serves the B2B market, where companies already have clients, while the more successful smartphone PLI serves the B2C market, said consultant on condition of anonymity.
The PLI Smartphone scheme was one of the most successful government. On April 17, electronics and IT Minister Ashwini Vaishnaw in the X post that in FY25 export smartphone £2 trillion. Exports increased by 55% in FY25.
Telecom PLI scheme offers 4-7% incremental sales incentives over the years. In the first, second and third year, MSMES will receive 1% higher motivation.
“Samsung has not begun production and meets the supply of Indian Telcos equipment on imports,” said the executive industry, who knew about the matter. The company did not respond to the question.
HFCL
In February, the home manufacturer HFCL said he expected to start incentives PLI from FY26.
The amount of PLI, we were still unable to claim, because… the amount of income that we thought was coming from the telecommunications equipment that will make us available to us during the current financial year. So we expect to start claiming PLI from the next financial year, ”said Mahendra Nahata, promoter and CEO of HFCL analysts during earnings in February.
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“If we can even say, this should be (motivation of PLI).” £40-50 crore, ”added Nahata. On 1 November 2022 HFCl said he would invest around £425 Crore to develop and produce various eligible products within the PLI system. The Company said that the incentives were given £652.79 Crore as part of the government system of motivation (PLI) government from FY23 to FY27.
Companies approved within this system could choose the period after five consecutive years either from FY22 to FY26 or FY23 to FY27 to achieve net incremental sale.
Questions sent to the Ministry of Union Communications, which manage this system, as well as HFCL, Kaynes, Samsung, OpTiemus, Netweb Technologies and ITI remained unanswered.
‘Successful’
However, a government official claimed that this system was successful.
“The goals are set by the companies themselves. If they did not require any incentives, the sales or investment objectives may not be met. Despite this, they contributed to the total sale and export of telecommunications equipment,” the official said on condition of anonymity and added the amount to the government.
The Dashboard of the Ministry showed that the recipients in the telecommunications system have invested £4 139 crore and generated sales £80 927 Crore at the end of March. Companies created a cumulative job 26 345.
Tata Group Company Tejas Networks, which designs and produces telecommunications equipment, has received incentives £345.27 CRORE for FY23, FY24 and FY25 so far the highest of all companies has shown the RTI document. The company has obtained the BSNL 4G introduction and also exports its products to 75 countries.
Jabil Circuit India, which contracts for Ericsson and Apple, was second in the list and claimed incentives £236 crore, showed the document RTI.
The right strategy
Contracting manufacturers such as Flextronics Technologies India, Foxconn Rising Stars Hi-Tech and Syrma SGS £90.31 crore, £80.33 crore, and £53.3 crore. VVDN Technologies and Dixon Electro appliances received incentives £48 crore and £34.8 Crore so far according to the document.
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“Success within the PLI system also depended on the right sales and investment strategies that most medium -sized companies could meet. The government gave the company a free hand to decide on the goals that some companies overestimated,” said Paritosh Prajapati, CEO and founder of GX Sweden based in Sweden. The company produces routers, switches and other telecommunications equipment within the system in India and received incentives £20.9 crore.
Prajapati said he is now focusing on exports because companies have set up domestic bases.
Export
At the end of FY25, total exports within the telecommunications system were on £14 838 crore. Nokia Solutions and Networks India exported a device worth £4 487 crore, followed by applies in £4 356 crore.
Nokia, so far she has been able to get only incentives only £47 crore under the scheme. The company supplies 4G/5G equipment for telecommunications operators in the country and globally.
Commscope based in USA, which provides a network infrastructure solution, balanced telecommunications equipment £2 882 crore within the scheme. Home players such as VVDN technology have balanced products worth £1 293 crore, followed by Syrma SGS on £583 Crore and Tejas on £420 crore.
Exported Sanmin-Sci India, a subsidiary of Sanmin Corp. £384 Crore worth telecommunications equipment. In particular, Jio currently produces its facilities in India under the common company Reliance Industries with Sanmin.
The Ministry of Telecommunications (DOT) announced the PLI diagram for telecommunications and network products in February 2021 with expenditure £12,195 crore. Incentives for eligible companies were in the range of 4-7% on the basis of incremental sale of produced products of telecommunications and network. For MSMes there was 1% higher incentive in 1 year, 2 and year 3.
In June 2022, the government changed this program to facilitate the production of design with another incentive rate of 1% over the current incentive rate. Sum £4,000 crore from £12.195 Crore was earmarked for the same.
The government also extended the term of the system from five years (FY22 to FY26) to 6 years (FY22 at FY27).
Companies approved within this system could choose a period of five consecutive years either from FY22 to FY26 or FY23 to FY27 to achieve net incremental sale for incentive. However, investments are allowed up to FY25 or FY26 depending on the basic year they have selected. The extension was granted because many companies failed to achieve their production goals due to disruption of the COVID -related supply chain when the system came into effect.
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