Big multinational vendors like Nokia and Ericsson are on track to meet targets of the first year of the production-linked incentive (PLI) scheme for telecom and network equipment manufacturing, and do not need any extension of timelines, the Economic Times mentioned in a report.

Worth mentioning here is that a number of domestic and multinational contract manufacturers wrote to the telecom department directly and through the Cellular Operators Association of India (COAI), seeking one year’s extension to meet targets under the PLI. But big MNC players like Nokia and Ericsson believe to achieve the targets set for the first year.

“We haven’t sought any extension and were not represented by the COAI in the recent letter to the DoT. Our investment plans are on track and we will easily meet the targets for the first year,” the financial daily quoted a senior Nokia executive as saying on the conditions of anonymity.

Ericsson’s partner Jabil makes telecom equipment for the Swedish telecom gear maker through its facility in Pune. The company received nod from the DoT in October this year.

According to the business daily, many vendors have told the Department of Telecommunications (DoT) that they will not be able to meet their incremental investment and production targets for the first year (2021-22) since the final government permission came as late as November, leaving them with only four months to meet their targets.

One of the leading domestic telecom gear makers told the publication that while making investments was not the issue, achieving the target is a challenge due to the ongoing supply chain disruption, which impacted the initial four months of the fiscal year. “The shortage is still going on and the notification came late, which is why we have sought an extension,” the publication quoted an unnamed senior executive as saying.