Nokia, HFCL is involved in the telecom PLI system in India05. 06. 2021 Saturday / By: Robert Denes / Industrial / Exact time: BST / Print this page
T elecommunications device maker Nokia with Finnish roots and HFCL are participating in the $ 12,195 billion telecommunications PLI system, which will begin registration on Friday, company officials said in India on Thursday.
Under the scheme, investors can receive an incentive to increase sales up to 20 times the committed investment, enabling them to reach global proportions, exploit their unused capacity and increase production.
Manufacturers of both domestic and foreign telecommunication devices cited the impetus of the government’s vision of Atmanirbhar Bharat (independent India). “The government is a very encouraging initiative for India to establish a global manufacturing hub and Atmanirbhar Bharat.
A company official who did not want to name himself told PTI that Nokia adheres to the guidelines and is firmly involved in the scheme.
The system will take effect on April 1, 2021. Investments made by successful Indian applicants from 1 April 2021 until the financial year 2024-25 are eligible for incentives, subject to increasing thresholds each year. Support under the program shall be granted for a period of five years from financial year 22 to financial year 26.The scheme is expected to generate over 3,000 billion in investment and generate about 17,000 billion in tax revenue. According to the Association of Indian Telecommunication Equipment Manufacturers (Tema), the scheme came at the most opportune time when the domestic industry is preparing to start production in India. "We are complementing the DoT with a very out-of-the-box initiative that we reserve three applicants in each category for domestic companies only. This is a much needed effort and will result in India’s global champions with 12,195 billion incentives over the next five years.
The scheme is open to global companies with a turnover of over € 10,000 billion, domestic companies with a turnover of over € 250 million and MSMEs with an annual turnover of over € 10 billion.
An earlier announcement by the government of investments in the telecommunications PLI is expected to create direct and indirect employment of about 40,000 people.