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HFCL Receives Approval for Rs.652.79 Crore Incentive under PLI Scheme

Strategic Insights

— 1 min read

HFCL, a leading telecom equipment manufacturer and technology provider, has been approved to receive an incentive of up to Rs.652.79 crore under the Production Linked Incentive (PLI) scheme. The incentive is aimed at supporting the company's investment of ~Rs.425 crore in the development and manufacture of various eligible products under the scheme. The incentive amount will be distributed over a period of 5 years, from FY 2022-23 to 2026-27, allowing HFCL to improve its margins and emerge as a front-runner in the competitive global market.

Key Takeaways:

  • The PLI scheme aims to boost indigenous product development, domestic manufacturing, investments, and export of telecom and networking products.
  • The Union Budget 2022-23 laid thrust on the scheme for creating a strong 5G ecosystem in India by providing an additional incentive of 1% over and above the existing incentives for products designed and manufactured in India.
  • HFCL has committed to invest ~Rs.425 crore in the development and manufacture of various eligible products under the PLI scheme.
  • The company aims to make India a global manufacturing hub for Telecom and Networking Products.
  • HFCL has launched next-generation technology products, including the World's First Open source Wi-Fi 7 Access Points, 5G 8T8R Macro Radio Unit, and 5G Lab-as-a-service.
  • The company has announced a technical collaboration with Qualcomm for the design of 5G Outdoor Small Cell and Fixed Wireline Access product development.

Statistics:

  • The total investment under the PLI Scheme is committed at Rs.4115 crore, out of which HFCL has committed an investment of ~Rs.425 crore.
  • The incentive amount of up to Rs.652.79 crore will be distributed over a period of 5 years.
  • HFCL aims to improve its margins by leveraging the PLI scheme.

Sources:

  • "HFCL Receives Approval for Rs.652.79 Crore Incentive under PLI Scheme" by CRN Team HFCL Limited.
  • Union Budget 2022-23 (Government of India).
  • "HFCL Launches Next-Generation Technology Products at India Mobile Congress" by Contify.com.
  • "HFCL Collaborates with Qualcomm for 5G Outdoor Small Cell and Fixed Wireline Access Product Development" by Contify.com.

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