- 21 Jun 2022
- ICICIdirect Research
GOVERNMENT EXTENDS TELECOM PLI BY YEAR, GIVES ADDITIONAL BENEFITS
News: The government has extended the production linked incentives (PLI) scheme for telecom equipment manufacturing by a year. The government has also added 11 new telecom & networking products to the existing list and announced an incremental outlay of Rs. 4000 crore for designed led manufacturing of telecom equipment in India
Views: The domestic PLI beneficiaries of telecom equipment (largely MSMEs) have faced various supply led disruptions and were unable to meet their production target in FY22. Hence, the government has extended the PLI scheme for one year wherein companies can choose FY22 or FY23 as the first year of incentives with additional benefits on local design. Under the scheme government aims an incremental production worth Rs. 1.82 trillion of telecom equipment over the next five years. We believe, extension of time duration and additional incentives will benefit contract manufacturers such as Dixon Tech, Optiemus Infra, Panache Digilife etc
Impact: Positive