Friday, January 24, 2014: Semiconductor wafer fab: The long cherished hope of getting semiconductor wafer fab has come closer to reality with Cabinet giving green signal to two consortia for setting up semiconductor wafer fab in the country and approving an attractive incentive package for FABs. These two FABs have capacity of 40,000 wafer starts per month, with technology nodes ranging from 90 to 22 nm and involve investment of nearly USD 5 billion in each.
Investments under MSIPS: 25 proposals involving fresh investment of nearly Rs 132,000 million were received during the year 2013. Approvals of these are in different stages. The first set of investments has also been made and subsidies are expected to be disbursed in early next 2014-15. The investments include global majors as well as small scale companies. Verticals attracting significant investment include automotive electronics, LED, consumer electronics and mobile devices including smart phones and tablets.
Electronic Manufacturing Clusters: “In-principle” approval to seven new Greenfield Electronic Manufacturing Clusters was granted. The locations are Hyderabad (2) in Andhra Pradesh, Jabalpur and Bhopal in Madhya Pradesh, Hosur in TN, Bhiwadi in Rajasthan and Kochi in Kerala. These involve a total land area of 1832 acres and investment of Rs 22,370 million. Two of these clusters are being promoted by private industry while five are being implemented by State government entities. “In-principle” approval for supporting one Brownfield EMC at Bengaluru Electronic City is also in advanced stages.
State Policies: Governments of Karnataka, Andhra Pradesh, Maharashtra, Madhya Pradesh and West Bengal came out with policies/incentives for the electronics sector. These incentives are over and above the incentives being given by the Central Government.
Venture Funds for R&D and Innovation: Three Venture funds to support start-ups in electronics have been recommended and are under approval process in consultation with Planning Commission and Finance. The Funds are expected to stimulate new product development and IP generation in the area of electronics.
Skill Development in Electronics: Rs 1140 million scheme has been approved in October 2013 for providing skill development in electronics. The scheme provides 75 % of training fee as assistance for training in electronics manufacturing related skills as identified by Electronics Sector Skills Council, Telecom Sector Skills Council and NIELIT. Nearly 90,000 persons will be supported under the scheme in 6 states.
Compulsory Registration of Electronic goods: The mandatory requirement of meeting safety standards for 15 set of electronic products has come into effect from July 2013. Nearly 450 registrations have been issued.
International collaborations: A Joint Working group, involving both industry and the Government, has been set up between India and Japan to foster greater collaboration between the two countries. A Japan Help Desk has been set up in the DeitY. A Sub Group for promoting manufacturing in hi-tech sector has been constituted as part of the Joint Working Group between India and US. A proposal to set up Joint Working Group between India and Israel is under discussion. An MoU has been signed between TEEMA of Taiwan and STPI of India to promote the electronics sector. Taipei Computer Association (TCA) has opened its first office in India in Bengaluru in December 2013.
Incubators: The Working Group has recommended a Rs 211.7 million proposal for setting up of an Incubator for start-ups in Electronics in Delhi. The Incubator will be set up by STPI in association with India Electronics and Semiconductor Association (IESA) and Delhi University. Sanction is underway. This is one of the four incubators proposed to be set up in the country.
National Centre of Excellence in Large Area Electronics: A new National Centre of Excellence in Large Area Electronics has been agreed in-principle. Located at IIT Kanpur, the Centre would be a joint initiative of industry and academia, and will focus research on problems of the industry in areas like flexible electronics, print electronics, LEDs, etc. The project is estimated to cost Rs 1350 million. EFC process has been initiated.
Platform for B2B collaboration in Electronics: DeitY has provided a platform to technology providers and JV seekers to advertise announce their requirements. 19 companies have indicated interests to offer their technologies. 6 companies have indicated interest for seeking JV partners. Details are available at www.deity.gov.in/esdm
Setting up of laboratories for testing safety of electronics equipment: Scheme approved in August 2013. This scheme provides full grant to Central and State Governments and institutions under them for setting up test laboratories. Cost of lab equipment, cost of building infrastructure and professional fees is provided as grant under the scheme.
Domestically manufactured Aakash Tablet on the anvil: The Aakash –IV specifications were finalized. The tender for procurement of Aakash tablet was released by DGS&D and the process of short-listing vendors is expected to be complete by end January 2014. Aakash tablet is expected to provide impetus to domestic manufacturing industry.
Revised policy for preference to domestically manufactured electronic goods approved by Government in December 2013. This provides for preference e to domestic manufacturers in all Government procurement.
Scheme for expansion of PhD in Electronics sector: A scheme to enhance the number of PhDs in Electronics sector to 1500 per annum by 2017-18 was recommended by the EFC. The scheme is under advanced stage of approval by the Government.
Revival of flat panel LCD/LED TV manufacturing: Government disallowed bringing of flat panel LCD/LED TVs as part of baggage allowance in Aug 2013. This led to a spurt in domestic manufacturing of these TVs in the country.
Electronics India Logo: Last but not the least, a new logo for branding India as the new destination for electronics was released.
By Dr Ajay Kumar, joint secretary, DeitY, Govt of India
