Indian telecom equipment manufacturer HFCL has received an approval to avail incentive of up to Rs 652.79 crore as part of government’s production-linked incentive (PLI) scheme.
HFCL has received approval from Small Industries Development Bank of India (SIDBI), Project Management Agency (PMA) and Competent Authority designated by the Centre on its application for participation in the PLI scheme.
HFCL has committed to make an investment of Rs 425 crore in the PLI scheme for manufacturing of telecom products, including 5G Radio equipment, Routers, Switches, WiFi Products and Backhaul Radios, etc.
“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,” said Mahendra Nahata, MD, HFCL.
There has been a commitment of Rs 4,115 crore of investments from all the participating companies to date under the PLI scheme for telecom and networking products.
The DoT notified the PLI scheme for telecom and networking products on February 24, 2021, with a financial outlay of Rs 12,195 crore, over five years.
The incentive amount will be distributed over a period of five 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 recently announced a collaboration with chipset major Qualcomm for the design of 5G Outdoor Small Cell and Fixed Wireline Access product development.