HFCL would invest this amount towards the development and manufacture of futuristic telecom.
November 1, 2022
Domestic telecom gear maker HFCL will invest around INR 425 crore for manufacturing equipment under the production-linked incentive scheme in the next four years. The company would invest this amount towards the development and manufacture of various eligible products under the PLI scheme.
Watch: RR Kabel: Shreegopal Kabra on Fire Safety
Apparently, HFCL is one of the 42 companies selected for the telecom PLI scheme which enables it to avail incentives up to INR 652.79 crore. The incentive amount will be distributed over a period of 5 years commencing from FY 2022-23 to 2026-27, allowing HFCL to be more competitive globally.
The company has got approval from the Small Industries Development Bank of India (SIDBI), the Project Management Agency (PMA) and a Competent Authority designated by the Centre on its application for participation in the PLI scheme.
Also Read: HFCL Bags Order worth INR 115 crore for Supply of Optical Fiber Cables
Talking about the development to leading English daily, Mr. Mahendra Nahata, MD, said that the approval would help the company to improve its margins and enable it to emerge as a front-runner in the competitive global market. “Given our current focus on R&D, we are committed to investing Rs 425 crore for the development and manufacturing of futuristic telecom products,” he said, adding “We aim to make India a global manufacturing hub for telecom and networking products and believe that this initiative will enable our nation in expanding the manufacturing and development of the indigenous latest technology products.”
