Meeting with State Governments on
Promotion of
Electronics System Design & Manufacturing
29th May 2013
Department of Electronics & Information Technology (DeitY)
Ministry of Communications and Information Technology
Government of India
NPE Vision 2020
“To create a globally competitive electronics design
and manufacturing industry to meet the country's
needs and serve the international market”
Investment : US$ 100 Billion
Production : US$ 400 Billion
Employment : 28 Million
NPE 2012 : A Holistic Approach
I
• Electronics Manufacturing Cluster Scheme (EMC)
II
• Modified Special Package Incentive Scheme (MSIPS)
III
• Setting up of Semi-conductor Wafer Fab in India
IV
• Preferential Market Access
V
• Electronics Development Fund (EDF)
VI
• Mandating Safety Standards
VII
• Human Resource Development
Electronics Manufacturing Clusters
Infrastructure Development
• Roads
• Power
• Water
• ETP’s
• Testing facilities
• Social Infrastructure
• Subsidy up-to ~USD 10 mil per 100
acres of land
• Applicable to both Greenfield and
Brownfield projects
Subsidy of
50-75%
• Targeting 10 Clusters in 2013, and
200 by 2020
Modified SIPS
Substantial CAPEX
subsidy
• Reimbursement of CVD/excise for
capital equipment in non-SEZ units
• Reimbursement of Central taxes and
duties for 10 years in select high tech
units like fabs and ATMPs
Subsidy of
20-25%
• Available for entire value chain of
identified electronics products
• Incentives available for 10 years from
the date of approval
Semiconductor Fab
FAB in India
• India : Latest destination for Chip mfg.
based on strength of Chip design
• Global responses sought in the form of
EOI to setup Fabs
• Leading players have expressed interest
Decision: Expected soon
• Partners for Fab project to be finalized
soon
Preferential Market Access (PMA)
• Preference to domestically
manufactured electronic goods in
• Enabling framework
• WTO compatible
• No discrimination between
foreign and Indian
companies
• Government procurement
• Electronic goods having
security implications
• Extent of Government procurement
from domestic manufacturers will not
be less than 30 % of the total
procurement.
• Twenty Nine electronics and telecom
products notified by Ministry for
providing preference in Government
Procurement
Electronics Development Fund (Proposed)
EDF
Size of EDF
Typical
Daughter
fund
Daughter fund
– infra
Typical
Daughter
fund
Typical
Daughter fund
Daughter fund
-Innovation
•Fund to promote Innovation and IP and
R&D, product commercialization, etc in
ESDM, nano-electronics & IT sectors
•Comprises of “Daughter Funds” of size
US$ 20 Mil -100 Mil
US$ 2 Bil
•Each fund to have Govt. share from 25%
- 75%; remaining from private and
financial institutions
Mandating standards
Order comes into effect from
• 15 electronics products notified under
safety standards on October 3, 2012
• Allows Self registration
• BIS accredited labs to test the goods
July, 2013
Export Incentives
Export Incentives on FOB
Value
•Focused Product Scheme -2% duty credit
script
•Special Focused Product Scheme-5% duty
credit script
2-5%
•Focused Market Scheme
Enhancing PhDs in Electronics
• To develop an ecosystem for Research, Development and IP
creation in ESDM
• 2500 PhDs/annum by 2020 in ESDM
• Draft Scheme under formulation
– Provides for Phase 1
– 500 Full time 1000 part time in 5 years in ESDM , IT/ITES Sector
Department of Electronics & Information Technology (DeitY)
Ministry of Communications and Information Technology
Government of India
Electronics India - Billion needs , Million chips.
Electronics and ICT Academies
• To improve quality of faculty of institutes/colleges
• Physical and Financial Targets
– 15 Electronics & ICT Academies
• Broad Features
– Proposals from individual States/UTs in collaboration with IITs/IIIT/NITs,
etc.
-
Category
Estimated cost
Target for 4 yrs
Category A (10)
Rs. 25 crore
16,000
Category B (05)
Rs. 10 crore
6,400
• Scheme under approval
Department of Electronics & Information Technology (DeitY)
Ministry of Communications and Information Technology
Government of India
Electronics India - Billion needs , Million chips.
State Policies
• Karnataka ESDM Policy, 2013
• Electronics Hardware Policy, Govt. of Andhra Pradesh, 2012
• West Bengal Policy on Information & Communications Tech.,
2012
• Madhya Pradesh IT Inv. Policy 2012
Department of Electronics & Information Technology (DeitY)
Ministry of Communications and Information Technology
Government of India
Electronics India - Billion needs , Million chips.
Status Feb-May 2013
• MSIPS Applications
– 12 applications with investment of ~ Rs 4500 crores;
– Employment ~ 40,000
• Greenfield EMC Applications
– 6 applications with investment of ~Rs 2000 crores
• Brownfield EMCs
– 12 Brownfield EMCs notified
– Other States under process
Department of Electronics & Information Technology (DeitY)
Ministry of Communications and Information Technology
Government of India
Electronics India - Billion needs , Million chips.
Role of State Governments
• Create a specific policy focused for attracting investment
in ESDM sector
– Effective single- window clearances
– Reliable power etc.
• Indentify land for Greenfield EMCs
– Japan specific EMC
– Taiwan specific EMC etc.
• Develop common facilities in existing Brownfield EMCs
– Bengaluru, Hyderabad , Sriperumbudur, Noida/Greater Noida,
Gurgaon/Manesar, etc.
Department of Electronics & Information Technology (DeitY)
Ministry of Communications and Information Technology
Government of India
Electronics India - Billion needs , Million chips.
Role of State Governments…. Contd.
• Preference to domestically manufactured electronic goods
in major State procurements
– Laptops/Tablets
– LEDs
• Create capacities in Universities and Colleges to take
advantage of enhanced PhD programme.
Department of Electronics & Information Technology (DeitY)
Ministry of Communications and Information Technology
Government of India
Electronics India - Billion needs , Million chips.
Thank you
Department of Electronics & Information Technology (DeitY)
Ministry of Communications and Information Technology
Government of India
.