Dixon Partners With Bharti Enterprises To Manufacture Modems, Routers, STBs, And IoT Devices


Dixon Technologies has signed a Memorandum of Understanding with Bharti Enterprises. Under this joint venture, both companies are expected to manufacture products such as modems, routers, set-top boxes, IoT devices, and more for the telecom sector, especially for Airtel.

Dixon Partners With Bharti Enterprises To Manufacture Modems And STBs

However, the joint venture has to file all papers with the Department of Telecommunications and other agencies to get the benefits of the production linked incentive (PLI) scheme. "The said the joint venture will file necessary applications with the ministry of communications or any other nodal agency to avail benefits under the PLI scheme of the government," said Dixon Technologies.

Besides, the companies announced that after getting necessary approval from the ministry and other agencies, 74 percent of the company will be owned by Dixon, while Bharti will have only a 26 percent share. Notably, both companies will help each other in developing the products for the telecom industry, as Bharti Enterprises has a lot of experience in the telecom sector and Dixon is already manufacturing electronic goods.

Production-Linked Incentive Schemes For Telecom Sector

The Government has recently announced the PLI scheme for the telecom equipment sector. The Government approved Rs. 12,195 crores under the scheme for the sector. This scheme is likely to increase equipment production worth Rs. 2.44 lakh crores and will create employment in the sector.

"In the coming five years we hope to have incremental production of Rs. 2,44,200 crores, export worth Rs. 1,95,360 crores, direct and indirect employment to 40,000 people and tax revenue of approximately Rs. 17,000 crores to the country," the telecom minister Ravi Shankar Prasad said while announcing the PLI scheme for the telecom equipment sector.

In addition, the PLI scheme for the sector is likely to bring investment worth Rs. 3,000 crores. The minister also said that the Government has approved the PLI scheme to boost the Make-In-India program. He states that it will also boost the telecom equipment sector and 5G equipment will also come. Furthermore, he added that the PLI scheme is likely to decrease the imports of telecom equipment. It seems this scheme is specially designed for domestic equipment makers as Government wants to reduce dependence on foreign companies.

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