Samsung likely to seek extension of PLI scheme for telecom sector

After deciding to not participate in the production linked incentive (PLI) scheme for telecom networking equipment initially, Samsung Electronics is likely to seek an extension of the deadline to apply for the scheme.
 
The last date for submitting applications for the PLI scheme was July 3.
 
"There is pressure on Samsung for not participating in the PLI scheme for telecom network equipment. The government wants Samsung to invest to make India one of its global production hubs. The company is re-evaluating and may request the government if its application can be accepted since the deadline is now over," the Economic Times quoted an industry executive as saying.
 
Also Read: SpaceX to partner with Indian companies to manufacture satellite communications gear

Since the company had only one customer, Reliance Jio Infocomm, Samsung had earlier decided not to participate in the PLI scheme. The South Korean conglomerate is importing the equipment from South Korea and Vietnam through India's free trade agreement with these countries.
 
However, the Centre had expressed its dissatisfaction to the top leadership of Samsung multiple times before the Cabinet reshuffle over the company's decision to not participate in the scheme, the publication said.
 
"The government wants marquee investors to invest in PLI schemes. In fact, government officials have also expressed their disappointment that Samsung did not apply even for the IT hardware PLI scheme and fears that it may not do so in upcoming ones like that for AC and wearables," another executive was quoted as saying.

Also Read: Zomato shares in high demand ahead of IPO, grey market premium rises to 20%