Samsung won’t seek PLIs for equipment – The Economic Times

Clipped from: https://economictimes.indiatimes.com/industry/cons-products/electronics/samsung-wont-seek-plis-for-equipment/articleshow/83649444.cmsSynopsis

Samsung India officials conveyed the decision to the telecommunications department (DoT) in a videoconferencing meeting on Wednesday.

Samsung has decided not to participate in India’s production-linked incentive (PLI) scheme for telecom networking equipment since it does not want to commit fresh manufacturing investment in a market where it has just one client, two senior industry executives said.

The top management of the South Korean company, however, has told the government that it might explore such opportunities in the future, the executives said.

Samsung India officials conveyed the decision to the telecommunications department (DoT) in a videoconferencing meeting on Wednesday.

Samsung won’t Seek PLIs for Equipment

Samsung has been exclusively supplying equipment to Reliance Jio’s 4G telecom network and is also working for supplies for its 5G trials.

The supplies have been mostly coming from its plants in Vietnam, South Korea and China where there is sufficient capacity to manufacture for Jio’s requirements, the executives said. Moreover, imports from Korea and Vietnam are at zero duties through the free trade agreement route.

“Hence, Samsung did not find the business need to invest in another new facility in India right now since it already enjoys zero import duties and more so since it has just one client in the country,” one of the executives said.

A greenfield plant would involve around ₹800-1,000 crore investment, the executives said.

Emails sent to Samsung India, DoT and the electronics and IT ministry remained unanswered till Friday press time.

The PLI scheme for telecom equipment approved in February is aimed at making India a global hub for such manufacturing.

Samsung has already participated in the PLI scheme for mobile phones and was the only company to surpass both investment and output targets in the first fiscal year ended March 2021.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s