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Wednesday, December 29, 2010

Encouraging Telecom Equipment manufacturing in India-TRAI seeks your views

Telecoms services is booming but the expected derived demand for telecoms equipment eludes India based firms.TRAI has brought out a consultancy paper on this and seeks views of stakeholders by 14th January 2011. Issues for consultation:
Research & Development
3.1 What should be the objective and focus of the R&D effort for 2020?
3.2 Flowing from the above, what should be the objective and focus of the R&D effort for 2015?
3.3 What is the level of ‘Indian Products’ that we should attempt to achieve at the end of 2015 and 2020?
3.4 What is the broad level of investment required for this effort?
3.5 Which Institutions, whether in the Public or private sector, are best suited to carry out this effort? And why?
3.6 What can be the linkages established with Institutions or Indians abroad? Will this reduce time delays?
3.7 What should be the role of the Government and the Industry in regard to the R&D effort? In particular, what should be the investment, if any, by the Government?
3.8 Should an R&D fund be set up? If so, how can the fund be managed effectively to meet its objectives?
3.9 What could be the fiscal incentives to be offered by the Government? Should such incentives be linked to any outcome?
Sourcing of Inputs
3.10 What are the components that can be manufactured in the country with due consideration to commercial viability?
3.11 What should be the degree of indigenous manufacture of components that we can reasonably achieve a period of 5/10 years?
3.12 What, do you think, is the feasibility of setting up of commercially viable fabricating units to manufacture chips, ICs?
3.13 Is the Duty on components currently being levied high? If so, on what components can the duty be reduced? What are the financial implications and the corresponding benefits?
3.14 Should electronic Manufacturing service companies be incentivised? If so, how?
Manufacturing of equipment

3.15 Should the concept of mandatory use of Indian products/Indian manufactured products be introduced in the Indian context? If so, can this be introduced immediately or should it be introduced at a later date? If so, by what date?
3.16 What could be the percentage to be stipulated for both these categories?
3.17 What should be, if any, the incentives to be given to individual service providers for use of Indian equipment?
3.18 Likewise, what could be the disincentives, if any, for use of imported equipment? This is compatible with international agreements?
3.19 What could be the duty structure to be imposed on imported goods?
Promoting Domestic Manufacture
3.20 Should a percentage of the Indian market be reserved for the Indian manufacturers? If so, what should be the percentage?
3.21 What, if any, could be the implications of such a step?
Setting up of Special Zones or Telecom Clusters
3.22 What, if any, are the advantages of setting up of clusters for manufacture of Telecom equipment within the country?
3.23 What is the investment required for setting up of such clusters?
3.24 How can the financing of such clusters be best done, based on international experience?
3.25 What would be the lead time required for setting up of such clusters?
3.26 What are the considerations for the location of such clusters?
Testing, Standarisation and Accreditation
3.27 What, in your opinion, would be the best agency to set up and manage such a Common facility/ies?
3.28 What would be the facilities and the level of investment required in such a facility?
3.29 How will such an investment pay for itself?
3.30 What, in your opinion is the likely requirement of Capital for companies that could take up the manufacture of telecom equipment?
3.31 What could be the best manner of facilitating availability of capital to such firms?
3.32 Would setting up of Institutions like ITRI be desirable and feasible?
Duties and Levies
3.33 What would you suggest should be the tax structure in respect of imported and indigenous manufacture of telecom equipment, keeping in view the international agreements?

To ensure that Indian Innovators views are given due consideration, Indian Innovators Association is planning to submit its views based on inputs received from innovators and start-ups. Pl send your inputs before 10th January to indiainventsathotmaildotcom

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