Approval of National Policy on Electronics 2012

The policy proposes the following strategies: 

(i) Creating eco-system for globally competitive ESDM sector: The strategies include provision of fiscal incentives for investment, setting up of electronic manufacturing clusters, preferential market access to domestically manufactured electronic products, setting up of semiconductor wafer fabrication facilities, industry friendly and stable tax regime. Based on Cabinet approval, a high level Empowered committee has been constituted to identify and shortlist technology and investors for setting up two semiconductor wafer manufacturing fabrication facilities. Based on another Cabinet approval a policy for providing preference to domestically manufactured electronic goods has been announced. Separate proposals have also been considered by the Cabinet for approval of Modified Special Incentive Package for the ESDM Sector and for setting up of Electronics Manufacturing Clusters (EMCs). 

(ii) Promotion of Exports: The strategies include aggressive marketing of India as an investment destination and providing incentives for export, 

(iii) Human Resource Development: The strategies include involvement of private sector, universities and institutions of learning for scaling up of requisite capacities at all levels for the projected manpower demand. A specialized Institute for semiconductor chip design is also proposed. 

(iv) Developing and mandating standards to curb inflow of sub-standard and unsafe electronic products by mandating technical and safety standards which conform to international standards. 

(v) Cyber security: To create a complete secure cyber eco-system in the country, through suitable design and development of indigenous appropriate products through frontier technology/product oriented research, testing and validation of security of products. 

(vi) Strategic electronics: The strategies include creating long-term partnerships between domestic ESDM industry and strategic sectors for sourcing products domestically and providing Defense Offset obligations for electronic procurements through ESDM products. 

(vii) Creating ecosystem for vibrant innovation and R&D in the ESDM sector including nanoelectronics. The strategy includes creation of an Electronic Development Fund. 

(viii) Electronics in other sectors: The strategy includes supporting and : developing expertise in the electronics in the following sectors of economy: automotive, avionics, Light Emitting Diodes (LEDs), Industrial, medical, solar photovoltaics, Information and Broadcasting, Telecommunications, Railways, Intelligent Transport Systems, and Games and Toys. 

(ix) Handling e-waste: The strategy includes various initiatives to facilitate environment friendly e-waste handling policies. 

Indian government to promote electronic manufacturing clusters with grants of Rs 50 crores

Union cabinet approved proposal of Dept of Electronics and Information Technology to promote Electronic Manufacturin Clusters with grant upto Rs 50 crores.

The proposed EMCs scheme would support setting up of both Greenfield and Brownfield clusters. "These EMCs would aid the growth of the electronics systems design and manufacturing (ESDM) sector, help development of entrepreneurial ecosystem, drive innovation and catalyse the economic growth of the region by increasing employment opportunities and tax revenues," the government stated in its release.

The scheme is also expected to help flow of investment for the development of world-class infrastructure specifically targeted towards attracting investment in the ESDM sector. Under the scheme, the assistance would be provided to a special purpose vehicle (SPV). The SPV may be promoted by private companies, industry associations, financial institutions, R&D institutions, state or local governments or their agencies and units within the EMC. The SPV should consider including an academic/research institution to be part of the proposed SPV for suitable academic-industry linkages.

The financial assistance to the SPV shall be in the form of grant-in-aid only. For Greenfield EMCs the assistance will be restricted to 50 per cent of the project cost subject to a ceiling of Rs.50 crore for every 100 acre of land. For Brownfield EMCs the assistance will be restricted to 75 per cent of the project cost subject to a ceiling of Rs.50 crore.