The government is tightening its scrutiny on companies benefiting from the PLI scheme in the telecom sector, with concerns arising about the usage of Chinese equipment in core production. The Department of Telecom will investigate these companies and has sought reports on their indigenous production and vendors. Under the PLI scheme, the government provides 5 to 8 percent incentives to encourage the production of indigenous telecom equipment.
Government’s Vigilance: Investigating Chinese Equipment Usage in Telecom Sector PLI Scheme
Companies like Dixon, ITI, HFCL, and Tejas are currently availing the PLI benefits, and the government aims to ensure compliance and curb any usage of Chinese equipment in the process. The companies have been instructed to provide all relevant information to the Department of Telecom by July 31.
