Dixon partners with Bharti to make telecom equipment under PLI scheme

Dixon group on Wednesday formed a joint venture (JV) with Bharti Enterprises to apply for government’s production-linked incentive (PLI) scheme for manufacturing of telecom and networking products.

Under the plan, the JV is targeting the Bharti group to pick up 80-85 per cent of the value of its cumulative sales of five years.

The JV, in which the electronic manufacturing services (EMS) player will hold a 74 per cent shareholding (the rest with Bharti), will be the first company to be applying to avail of telecom PLI incentive.

Under the scheme, the government has earmarked an outlay of Rs 12,195 crore for manufacturers of telecom gear with incentives ranging from 4 per cent to 6 per cent on incremental sales for five years. The detail modalities are being finalised.