West Bengal to boost Electronics Manufacturing with a new policy

In a bid to boost the hardware and software sectors in the state, the West Bengal government has come up with the West Bengal Policy on Information and Communication Technology (ICT), 2012 and West Bengal ICT Incentive Scheme, 2012. The state is also renaming the Information Technology Department as the Information Technology and Electronics Department, recognising the importance of ESDM sector.

The government has recognised that the position of the state is not satisfactory in the Electronics System Design and manufacturing Sector (Sector). However, West Bengal has some presence in the manufacture of solar equipment. The government believes that the hardware sector in the state has great potential for growth with the availability of the skilled and qualified manpower. The government states that a large part of the existing manpower in the semi-conductor industry in India is from West Bengal.

With this policy, the state aims to become one of the top three states in India by turnover and employment, both in the IT, ITes and ESDM sectors by 2020. The state government has also highlighted that it aims to create an investor-friendly climate for increasing West Bengal’s share in production of electronics goods to 15 per cent by value by 2020.

The policy has provisions to give boost to electronics manufacturing in the state. The government will leverage on the premier educational and research institutions located in the state in order to gain a leading position in the area of chip design, embedded software industry and areas related to Very-large-scale integration (VLSI) technologies. It will also work to “significantly enhance the availability of skilled manpower in the ESDM sector. Special focus for augmenting post graduate education and to produce about 400 PhDs in this field annually by 2020.” The state government would work with the Government of India and other state governments for developing and mandating standards and certification for electronics products and services along with strengthening the Quality Assessment infrastructure in West Bengal. The government will also strive to develop a necessary mechanism for effective disposal of e-waste in the state.

WB Targets To Build 15 Electronics Clusters In Five Years!

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Section 4 of the policy talks specifically about Electronic System Design and Manufacturing. The policy states that the state has ‘reasonably good infrastructure’ for setting up ESDM units in the state. It publishes, “The strategy of the state for providing infrastructural support can be divided in two parts, one for the SME sector and the other for any large unit setting up shop in the state.” For the SME sector, the state will build clusters in cities like Kolkata, Falta, Asansol, Kharagpur, Purulia, Kalyani and Siliguri. Some three or four cities will also be identified for building clusters. The target is to build at least fifteen such clusters in West Bengal in the next five years, either through Central Assistance or through state-funding.

The investors falling in category of SME and willing to set up units other than in Electronic Clusters will also be offered maximum assistance for its infrastructural needs. The state will offer infrastructural support at a ‘reasonable cost’ to large units willing to set up units in the state. The state will also assist the investor through a dedicated ‘hardware cell’ of the IT department. The state will also develop a ‘Design Cell’ with the assistance of one or more premier technological institutions.

To strengthen the status of Semiconductor fabrication plants in the state, the government will carry out all necessary policy and promotion efforts to bring in investment in the Fab sector, both in Digital Fab and Analog – Mixed Signal Fab. The state will provide suitable land-sites and facilitate the building of necessary infrastructure for setting up the Fab units.

The State government will also strive to attract the foreign investment for the development of electronics sector. The policy states, “The State government will take effective action in mobilizing foreign direct investments in the electronics hardware sector, especially from Japan and Taiwan, given the proximity and the potential in these two countries.”

Commenting on the policy, Mamata Banerjee, chief minister, West Bengal, said, “I find that the new policy is holistic in its approach, covering both the software and hardware sectors and takes into account issues important for the growth of the industry like infrastructure, finance, human resources e-literacy, e-governance, etc.”

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