In order to motivate the entrepreneurs to set up electronic testing labs across the country, the Department of Electronics and Information Technology is working to a bring a new incentive policy. The policy is a part of government’s plans to bring a standards regime for all electronic products.
The Government of India has notified 15 categories of electronic products that must comply with the certified safety and efficiency standards by April 2013. These categories include computers, phones and multi-media products.
According to a report from Business Line, Ajay Kumar, joint secretary, Department of Electronics and Information Technology, said, “Even for certifying standards for these category of products, we do not have adequate electronics testing labs. We are working on a new policy under which we will provide some incentives to investors willing to set up such labs.”
According to the estimates, around 50 electronic testing labs are required which will help the electronics makers to get the certificate before the above mentioned products hit the shelves. Some of the makers of these catergories of products are setting up their own labs but the government feels the need for setting up independent labs as well, said the official.
The government plans to bring other electronic products under this regime in the second phase. However, medical electronics products will not be included under the certified standards regime anytime soon.
The government wants to reach to its target of $400 billion turnover for electronics products by 2020, with this initiative. The current level of turnover from electronics products is $80 billion. The official said to the Business Line, “Out of the targeted $400 billion, $55 billion will come from the chip design segment, about $80 billion from semiconductors, $35 billion from LED products and $34 billion from telecom equipment.”
This new policy will also include the creation of an Electronics Development Fund of Rs 10,000 crore. This fund will include contributions from the government, venture funds and private investors. Kumar said that the mother fund will be used to fund various daughter funds, which may range from Rs 100 to Rs 1000 crore. The government is expecting some of the daughter funds to be operational in the next three to four months.
