The company has migrated to the DLI scheme as it is designing and manufacturing the products locally. It was earlier selected by the government for the Rs 12,195 crore telecom equipment<\/a> production-linked incentive (PLI) scheme.
The DoT had amended the telecom equipment PLI scheme in April this year to facilitate design-led manufacturing with additional incentive rate of 1% over and above existing incentive rates. Further, additional telecom and networking products were added in the list of eligible products.
“HFCL has applied for an investment of Rs 450 crore in the government’s DLI scheme for the creation of facilities to manufacture telecom equipment including R&D<\/a> facilities. The subsidy amount will depend on the revenue that is generated and the subsidy will be distributed over 4 years,” Mahendra Nahata, MD, HFCL told ET. He said that the investment in DLI scheme will help support various stages of development and deployment of futuristic range of technology products and solutions. “The investment will promote development of indigenous next generation telecom solutions for India and key global markets,” Nahata added.
The DoT has got applications from 17 companies for its DLI scheme worth Rs 4,000 crore. Some of the beneficiaries of the telecom PLI scheme have migrated to DLI scheme because of additional 1% benefit. The telecom PLI scheme offers incentives in the range of 4% to 7% for different categories and years.
With the launch of 5G services<\/a>, HFCL expects to meet the targets under the DLI scheme as the company manufactures products like small cells and other transport products. Once the rollout of 5G<\/a> picks pace, the company is expected to supply its products to mobile operators.
HFCL has also launched a 5G lab-as-a-service, which provides an automated test environment wherein any company or startup can test 5G its applications or equipment by paying a fee. The 5G lab provides a sandbox for rapid prototyping of 5G use cases addressing the needs of various industry segments that include manufacturing, transportation, healthcare and retail. The 5G Lab will help to create pre-integrated and pre-validated 5G solutions for low mobility large cell needed for efficient rollout of rural mobile broadband in the country.
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