The Union Cabinet has approved the production linked incentive (PLI) scheme for telecom and networking equipment manufacturing. The government expects the scheme with an outlay of Rs 12,200 crore to deliver incremental production worth Rs 2.4 lakh crore over five years.

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CNBC-TV18 speaks to Sanjay Kapoor, Telecom Consultant and Entrepreneur and Sanjay Nayak, MD and CEO of Tejas Networks on what they make of this scheme.

Kapoor said, “Nobody can debate the intent behind Atmanirbhar Bharat, Make in India, I think that is all a noble cause, and given the fact that the world will be competing on virtual infrastructure in future it is paramount that many parts of the world would like to produce and make their countries epicentre for these gadgetry and R&D around these.”

PLI is a great stimulus to start manufacturing things in India, Kapoor added.

“If you look at PLI scheme, it is a great stimulus to start manufacturing things in India but will have a short term delivery of hiking the volumes, probably get you some exports. But to really make a company sustainable over five years and then to make sure that the world adopts the technology that gets manufactured and designed in India and is interoperable globally, I think requires a much bigger effort. A PLI scheme alone cannot make that happen.”

He also added, “So the continuation of the support will be required if they do not garner capability in these 4-5 years.”

Tejas’ Nayak said, “This is a good policy because for Tejas Networks in particular that all the products that we make are specifically covered in terms of the product that will be covered for giving the incentives.”

He further added, “Second thing which I see is the important thing because they would not only cover the manufacturing investments but also the R&D investments which is going to lead to innovation which is about we strongly believe in. so the two things together it is a good positive step for Indian companies like us to step-up and scale-up.”

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(Edited by : Ajay Vaishnav)