Electronics manufacturing gets a Rs 6,000-crore push

As the country vies for self reliance in electronic goods production, the Department of Electronics and Information Technology (DeitY) has so far approved proposals amounting to around Rs 6,155 crore under the Modified Special Incentive Package Scheme (M-SIPS).

The scheme looks at providing financial incentives to private companies for setting up electronics manufacturing units. The government has given final as well as in-principle approval to 28 electronics manufacturing clusters (EMCs) and common facility centres (CFCs) across the country.

According to a report by Deloitte Touche Tohmatsu released last year, the demand for electronics hardware in India is projected to grow $400 billion by 2020. However, by that time the estimated domestic production could rise to only $104 billion, while the rest has to be met through imports. The government in India, through various initiatives, is looking at reducing the dependence on electronic imports by promoting domestic manufacturing.

“Till date under the EMC scheme, DeitY has received 44 applications for setting up 40 greenfield EMCs and four CFCs in brownfield clusters over an area of 6,922 acres spanning across 18 states with a project outlay of Rs 8,313 crore, seeking grant assistance of Rs 3,508 crore,” said the official.

DeitY has accorded final approval to seven greenfield EMCs, one CFC in brownfield cluster. Also, it has given in-principle approval to 17 greenfield EMCs and three CFCs in brownfield clusters.

The states which have been given final approval are Madhya Pradesh, Rajasthan, Jharkhand, West Bengal, Karnataka and Maharashtra.


Source: Business Standard dated 26 March 2016 (http://www.business-standard.com/article/companies/electronics-manufacturing-gets-a-rs-6-000-crore-push-116032600656_1.html)