Telecom Equipment Makers Rally After Cabinet Approves PLI Scheme

The government will also come up with a PLI scheme to encourage production of laptops and tablets.

Shares of telecom equipment makers such as Sterlite Technologies, Vindhya Telelinks, D-Link, HFCL, ITI, Indus Towers, Shyam Telecom and Tejas Networks rose in the range of 2-11 per cent after the Union Cabinet approved Production Linked Incentive (PLI) scheme for telecom equipment makers. The Union Cabinet headed by Prime Minister Narendra Modi approved Rs 12,195 crore production linked incentive (PLI) scheme for the telecom and networking products in order to boost India’s manufacturing capabilities and enhance exports.

“The scheme is aimed at offsetting the huge import of telecom equipment worth more than Rs 50,000 crore and reinforce it with “Made in India” products both for domestic markets and exports,” Telecom Minister Ravi Shankar Prasad said in a media briefing after a cabinet meeting. The scheme outlay is for a period of five years.

The government had, towards the end of last year, rolled out a PLI scheme worth Rs 50,000 crore for large-scale electronic goods makers for five years, to attract investments in mobile phone manufacturing and electronic component units.

The government will also come up with a PLI scheme to encourage production of laptops and tablet PCs, the minister added.

Shares of Sterlite Technologies rose 11 per cent, Indus Tower rose 4 per cent, ITI climbed 10.3 per cent, Tejas Networks advanced 10 per cent, HFCL added 10.2 per cent, Vindhya Telelinks rose 6 per cent, Shyam Telecom climbed 9.89 per cent.