Samsung Electronics had revealed earlier that it would not be partaking in the telecom PLI scheme
South Korean electronics giant Samsung Electronics is reportedly vying to apply for the Centre’s production-linked incentive (PLI) scheme for telecom networking gear provided its application deadline is extended by the government.
An Economic Times report quoted senior executives who approached the government in this matter saying, “There is pressure on Samsung for not participating in the PLI scheme for telecom network equipment.”
Samsung Electronics had revealed earlier that it would not be partaking in the telecom PLI scheme since it does not wish to invest any further money in expanding its manufacturing power in a market where it has Reliance Jio as the sole client. Samsung has been importing the equipment duty-free through the free trade agreement (FTA) route from South Korea and Vietnam.
Following this, the Centre had expressed its dissatisfaction multiple times to the top brass of the Korean giant before the Cabinet reshuffle for not applying in the PLI scheme for telecom equipment, through senior bureaucrats in the ministry of electronics and IT, and the telecommunications department, as per the report.
“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,” said an industry executive.
Samsung also did not apply for the IT hardware PLI scheme, although it did participate in the PLI scheme for smartphone manufacturing. The deadline for receiving telecom PLI applications closed on July 3.
Another executive said there was similar pressure from the government a couple of years back to restart Samsung’s India television manufacturing unit which it had shut. The company has since reopened the plant and expanded TV production in India through contract manufacturers.
“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,” he said.
The company recently shifted its display manufacturing unit from China to Noida, Uttar Pradesh.
