Hyderabad: The Resolute group of companies became the first electronics company in Telangana to receive PLI (Production Incentive) approval for telecommunications and LED lighting from the central government.
The Hyderabad-based company intends to make investments and start manufacturing telecommunications equipment, including networking products, 4G, 5G telecommunications equipment, and fiber-optic telecommunications equipment. The company will increase volumes in addition to ensuring quality.
The company believes that the entire LED segment is moving towards smart lighting, which is the future. The current PLI is beneficial for smart lighting, which is more energy efficient than LEDs.
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Raminder Singh Soin, President of Resolute, said, “The government wants manufacturing to be in India and there is an overall cost advantage. When we are able to reduce the overall costs for the final product rather than the imported product, we have the cost advantage and we have the manufacturing advantage.
“The government seeks to increase employment opportunities and create an ecosystem that makes us more competitive globally,” he added.
Resolute has a long history in the telecommunications sector as well as the lighting industry and is now entering the next phase of growth with PLI sanctions. “We have the technology, and what we need in India is innovation and scalability. This will make it possible to export the products and not only “Make in India” for India but also for the rest of the world, ”Soin said.
Government sanctioning of the LIP will promote economies of scale and reduce the overall cost. Previously, the import of components contributed 80 percent of the building material and this has now come down to 40 percent, which clearly indicates the transformation.
“We expect this to be even less than 10% with only the main integrated circuits to be imported while the other components will be made in India. This is a major step in the case of LED lighting, which is well controlled, ”added Soin.
DPIIT’s proposal for the PLI scheme for white goods for the manufacture of air conditioner and LED lighting components and sub-assemblies was approved by the Union Cabinet chaired by the Prime Minister on April 7, 2021. The Scheme is to be implemented over a seven-year period, from fiscal year 2021-22 to fiscal year 2028-29 and has an expenditure of Rs 6,238 crore.
In total, 52 companies have submitted their application with a committed investment of Rs 5,858 crore under the PLI program. After evaluation of all applications, 42 applicants with a committed investment of Rs 4,614 crore were provisionally selected as beneficiaries under the PLI program.
The selected candidates include 26 for the manufacture of air conditioners with committed investments of Rs 3,898 crore and 16 for the manufacture of LED lamps with committed investments of Rs 716 crore.
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