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PLI scheme for telecom: Only half of eligible firms get Rs 1,162 crore in incentives till FY25, says DoT

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PLI scheme for telecom: Only half of eligible firms get Rs 1,162 crore in incentives till FY25, says DoT

Just 21 out of the 42 manufacturers eligible under the telecom production-linked incentive (PLI) scheme have received incentives till March 31, 2025, with total disbursements reaching Rs 1,162 crore, according to data provided by the Department of Telecommunications (DoT).The telecom PLI scheme, which began on April 1, 2021, and is scheduled to end in the current fiscal year, had earmarked a total incentive outlay of Rs 4,115 crore. The government had projected the scheme would generate Rs 2.45 lakh crore in additional sales and create over 44,000 jobs during its tenure, according to PTI.“Total incentive disbursed under the scheme till March 31, 2025, is Rs 1,162.03 crore,” the DoT said in response to an RTI query, reported PTI.According to the department, two companies—Coral Telecom Ltd (for FY 2021–22) and Alphion India Pvt Ltd (for FY 2022–23)—failed to meet the eligibility threshold and were denied claims.A beneficiary, speaking on condition of anonymity told PTI that some telecom gear makers were white-labelling imported products, which affected domestic production and squeezed margins under the scheme.“A strict monitoring of the scheme is required to curb such unethical practices that have impacted the intent of the scheme. The government has given open support to telecom operators to improve their liquidity,” the official said, quoted PTI. “Telecom operators should also align with the government’s ambition of self-reliance and job creation by encouraging procurement of products that come with higher local value addition.”As of January 2025, beneficiaries had invested Rs 4,081 crore under the scheme, generating total sales of Rs 78,672 crore, including exports worth Rs 14,963 crore. The companies collectively created employment for 26,351 individuals.Jabil Circuit was the biggest gainer, receiving Rs 235.87 crore in incentives across FY23 and FY24. It was followed by Flextronics (Rs 165.12 crore), Nokia (Rs 157.32 crore), NeoLync Tele Communications backed by Reliance Industries (Rs 142.06 crore), Foxconn’s Rising Stars (Rs 80.33 crore), and Syrma SGS (Rs 53.23 crore).Other beneficiaries receiving less than Rs 50 crore include VVDN Technologies (Rs 48.37 crore), Sanmina-SCI (Rs 44.35 crore), Dixon India (Rs 34.78 crore), and GX India (Rs 20.91 crore)





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