Will boost manufacturing, says Dept of Electronics and IT
The Department of Electronics and IT (DeitY) will approach large Indian corporates to encourage them to acquire foreign technology majors such as Research in Motion , Nokia and Ericsson. The move is part of the department’s blueprint to market its recently announced schemes to promote electronic manufacturing.
According to an internal presentation made by DeitY to Minister of Communication and IT, Kapil Sibal, the Government is hoping that Indian companies would take such initiatives to take full advantage of the recently announced policies. The presentation made by DeitY, titled ‘Marketing of ESDM Policies’, said there should be customised presentations to major industrial houses such as Tatas, Reliance and Birla to encourage them with regard to such opportunities as many companies globally are not doing well.
“There were at least three presentations made to MCIT (the ministry) last week and these are continuous brainstorming sessions, which happen regularly. The idea is to excite the Indian companies for such opportunities as market cap of many global companies (Nokia, RIM and Ericsson) are at very low level,” a senior DeitY official who did not wish to be named told Business Line.
The Cabinet on July 4 and 12 respectively approved two schemes - the Electronics Manufacturing Clusters (EMCs) and Electronic System Design and Manufacturing (ESDM) proposal to provide a special incentive package to promote investment in the sector.
The ESDM scheme called the Modified Special Incentive Package Scheme (M-SIPS) will provide subsidy on investments of 20 per cent in special economic zones (SEZs) and 25 per cent in non-SEZs.
It will also reimburse countervailing duties/ excise on capital equipment for the non-SEZ units. For high-technology and high capital investment units, like Fabs, Central taxes and duties will also be reimbursed.
The incentives will be available for investments made in a project within a period of 10 years from the date of approval.
The EMC scheme will help development of entrepreneurial ecosystem, drive innovation and catalyse the economic growth of the region by increasing employment opportunities and tax revenues.
The DeitY official quoted above said the policies are in place now for a market to be created and products to be exported from India rather than imported.
The marketing plan also includes a round table with major trade organisations and industry leaders of ESDM companies, a delegation visit led by Sibal to countries such as Germany, Japan, Korea, the US, Israel, Sweden and Belgium starting January.
It will also invite companies which do not have manufacturing in India. The Government will send letters to the companies’ headquarters and will ask the Indian embassies there to follow up.