Issue: Feb 2013
Author: Richa Chakravarty
In an initiative to upgrade brownfield clusters, DeitY chalks out guidelines for Brownfield EMCs, guidelines for Greenfield EMCs expected soon
For long the electronics manufacturing industry has been waiting for facilities that could be developed for the brownfield clusters. Finally, the guidelines for Brownfield Electronic Manufacturing Clusters (EMCs) rolled out by Department of Electronics and Information Technology (DeitY) seems to put an end to the problems faced by manufacturers. Under Modified Special Incentive Package Scheme, government focuses on providing fiscal incentives to Electronics System Design and Manufacturing (ESDM) units located in EMC. Through M-SIPS assistance will be provided to both brownfield (existing) as well as greenfield (new) units. While DeitY chalks out guidelines for Brownfield EMCs, we can soon expect the guidelines for Greenfield EMCs as well.
With these guidelines in place, manufacturers can avail a number of benefits. Ideally a proposed Brownfield EMC can have an aggregate annual turnover of at least Rs 10,000 million and a minimum of 7 units. These units may produce same or related ESDM products or services and/or use a similar input or share similar processes that will help create synergies and positive externalities across them.
Also, these units will share technical advice and assistance and have access or linkages to scientific, academic and R&D institutions. Also the units that are willing to be a part of the brownfield can avail the similar benefits. While the government will provide assistance to the units in Brownfield, its role will be that of a facilitator, the members of the Brownfield will set up a special purpose vehicle (SPV) to manage the facilities.
All applications for notification of Brownfield EMC as per the application format needs to be submitted to Department of Electronics and Information Technology (DeitY) with whom rests the final decision. Hence, companies interested need to fill in required information pertaining to the proposed cluster; name of applicant, location of cluster, constituent units, synergies and positive externalities, association with scientific, academic and R&D institutions, and environmental assessment.
