Reportedly, the news coming that Samsung plans to invest Rs 400 crore to begin making 5G and 4G radio equipment at its facility in Tamil Nadu. Notably, it comes to be the latest global gear maker on board the government’s telecom equipment production-linked incentive (PLI) scheme.
It is worth informing here that this will be its first investment into telecom gear making in India. While collaborating with worldwide peers Nokia and Jabil (Ericsson) in making 5G equipment locally.
“Samsung has proposed an investment of Rs 400 crore and plans to start production of 5G/4G equipment at Kanchipuram,” the official said.
Although, Samsung didn’t officially respond to the news sources until going to press. At the same time, the 5G equipment has taken off as both companies. Reliance Jio Infocomm and Bharti Airtel start rolling out their 5G networks. Also, the Korean tech firm partnership catch deals from both Jio and Airtel in order to supply 5G radios for certain select circles.
Samsung entered into the telecom equipment PLI scheme
Notably, Samsung entered into a Rs 12,195-crore telecom equipment PLI scheme. However, due to the shortening of opportunities in the equipment supply, it miss out last year. Additionally, earlier this year, Samsung got approval as a ‘trusted’ source from the National Security Council Secretariat (NSCS).
As getting such approvals is quite necessary in order to be selected by the telecom operators to install equipment on their network. While security clearance is a procedure of a directive that came into existence on June 15 last year. Also, it is mandated that operators can enable to procure equipment from trusted sources.
Also, the department of Telecommunications (DoT) substantially notified the PLI scheme. For telecom equipment making with an outlay of Rs 12,195 crore that is spread over five years on February 24 last year. It includes a total of 42 firms, out of which 28 micro, small and medium enterprises (MSMEs) respectively. Also, it has been selected under the scheme whereas it made a total investment commitment of Rs 4,115 crore.
Adding to the above info, the Financial year 2019-20 will be considered as a base year for computation in regard to the cumulative incremental sales of manufactured goods.
