Web: How Samsung and 20 Others missed an ambitious incentive scheme

Copyright © HT Digital Streams Limit all rights reserved. Jatin Grover 6 min read May 23, 2025, 05:35 AM IST top manufacturers such as Samsung, HFCL Ltd, Netweb Technologies, Kaynes International, Options Unit GDN Enterprises and Iti Ltd has not yet claimed. Summary The Telecommunications Product Manufacturing Scheme is expected to generate incentives of more than £ 12,000 crore. But that’s not how it turned out. An ambitious scheme to increase local telecommunications manufacturing is still far from its target, four years after the government set aside £ 12,000 to get businesses to build everything from network equipment to set-top boxes. Although beneficiaries of the scheme sold goods worth more than £ 80,000 during the period, incentives are still a fraction of the original allocation. Top manufacturers such as Samsung, HFCL Ltd, Netweb Technologies, Kaynes International, Optiemus Unit GDN Enterprises and ITI LTD have not claimed any incentives as they failed to start producing, or that they could not reach the targets. The result: Only a tenth of the incentives has so far been claimed by manufacturers. In a right to information (RTI), it was found that the scheme paid out £ 1,162.04 crore by the end of FY25, compared to the £ 12,195 crore approved for five years. While 42 were shortlisted, only half incentives demanded. The scheme was introduced in February 2021 to encourage the local manufacturing of equipment such as network switches, transmission equipment and set-top boxes. Also read: Airtel, Google is working together to counter Jio’s Free Cloud Blitz with 100 GB storage according to industry managers, the reasons include a poor order book and question, competition within the segment and the inability to meet set targets of investments and sales. ‘Missed Opportunity’ ‘The reason many players missed the event is due to the market structure compared to that of smartphone pli,’ said a consultant working with companies. Telecom Pli serves the B2B market where the businesses already have fixed customers, while the more successful smartphone pli serves the B2C market, the consultant said on condition of anonymity. The Smartphone Pli scheme was one of the most successful government. On April 17, Electronics and IT Minister Ashwini Vaishnaw said in a post on X that in FY25, a record of a record of £ 2 trillion reached. Exports grew by 55% in FY25. The Telecom Pli scheme offers incentives of 4-7% of incremental sales over the years. In the first, second and third years, MSMEs get a 1% higher incentive. ‘Samsung has not yet started production and complies with the equipment supplies to Indian Telekos of imports,’ said an operations manager who is aware of the matter. The company did not respond to an inquiry. HFCL’s February plan said domestic gear maker HFCL said he expected to start claiming the incentives of PLI of FY26. PLI amount, we still couldn’t claim, because … The amount of income we thought would come from telecommunications equipment, which would make PLI available to us, would not be adhered to during the current financial year. So, we expect to start demanding PLI from the next financial year, “Mahendra Nahata, promoter and managing director of HFCL told analysts during a earnings call in February. Also read: Ownewb is looking for more time to meet SATCOM security norms as spectrum can claim near £ 40-50 crore,” on November 1. said it would invest around £ 425 for developing and manufacturing different eligible products under the PLI scheme. FY26, or FY23 to FY27, to reach the net incremental sales. If they have not claimed any incentives yet, they may not have met the sales or investment goal. Nevertheless, they contributed to the overall sales and export of telecommunications equipment, “the official said on condition of anonymity, and the government added that the amounts paid out the amounts. The second in the list, and claims incentives of £ 236 crore showed the RTI document. Prajapati, CEO and founder of the Sweden-based GX Group. In the country and worldwide.