The Department of Telecom is working on rolling out a Rs 15,000-crore (€1.8 billion) worth production-linked incentive (PLI) scheme to promote the domestic production of telecom equipment.  The DoT is preparing the draft cabinet note to provide financial incentives to companies that produce 5G telecom equipment. The scheme's primary aim would be to boost the domestic production of telecom equipment and reduce the dependence of Chinese suppliers. State-run Indian Telephone Industries Limited (ITI), Sterlite Technology, Tejas Network, and Himachal Futuristic Communications Ltd. (HFCL) are some of the domestic players involved in the manufacturing of telecom equipment.

DoT is expected to provide the spectrum needed by telecom service providers for testing their 5G networks. 5G is the fifth-generation technology standard for cellular networks, superior to the 4G networks which currently provide connectivity to most cellphones. The testing was originally scheduled for March but got delayed because of the COVID-19 pandemic. “Telecom operators will need 6 months of testing 5G devices and spectrum before we begin auctions”. “We are looking at providing the companies with spectrum for the testing by September so that they can begin the process,” the official said.