Tejas Networks secures Rs 27.8cr incentive under PLI Scheme for telecom R&D

In a significant development for the Indian telecommunications sector, Tejas Networks [BSE: 540595, NSE: TEJASNET] has announced receiving a substantial incentive of Rs 27.78 crore for the fiscal year 2022-’23 under the Production-Linked Incentive (PLI) Scheme for Telecom and Networking Products. This incentive represents 85% of the total claim for FY23, with the remaining 15% anticipated to be disbursed subsequently, adhering to the guidelines of the PLI Scheme.

Anand Athreya, CEO and Managing Director of Tejas Networks, expressed gratitude towards the Empowered Committee for the PLI Scheme, the Department of Telecommunications (DoT), and the Small Industries Development Bank of India (SIDBI) for approving the company’s incentive application for FY23. The Government of India’s design-linked PLI Scheme has been hailed as a transformative initiative, significantly bolstering indigenous telecom Research and Development (R&D) and manufacturing. This scheme has initiated a cycle of domestic innovation within the sector, propelling Tejas Networks, a leading home-grown telecom and networking products company, towards achieving its global ambitions and becoming a top-tier telecom Original Equipment Manufacturer (OEM) in the forthcoming years.

Eligible for design-linked PLI incentives over five years, starting from the fiscal year 2022-’23, Tejas Networks is on track with its commitment to invest a cumulative minimum of Rs 750 crore during the scheme period. The incentives received each year will be proportional to the company’s incremental net sales of approved products over the net eligible sales in the baseline year (2019-’20), as stipulated by the scheme guidelines.

Tejas Networks Ltd., a part of the prestigious Tata Group, specializes in designing and manufacturing advanced wireline and wireless networking products for a diverse clientele, including telecommunications service providers, internet service providers, utilities, defence, and government entities across over 75 countries. With Panatone Finvest Ltd. (a subsidiary of Tata Sons Pvt. Ltd.) as the majority shareholder, Tejas Networks is at the forefront of driving innovation and excellence in the global telecommunications industry.

This milestone underscores the pivotal role of government support schemes like the PLI in fostering a conducive environment for the growth of indigenous telecom R&D and manufacturing, positioning India as a global leader in the telecommunications domain.