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The Government has received 12 investment proposals totalling more than over Rs 5,000 crore from both Indian and global companies under a scheme designed to promote manufacturing and designing of electronic components in the country.
The proposals are from telecom equipment, consumer electronics, solar panels, LED manufacturing and semi-conductor assembly-test-mark-pack companies, Ajay Kumar, Joint IT Secretary, Department of Electronics and Information Technology, told Business Line .
These were received under the Department’s Modified Special Incentive Package Scheme (M-SIPS), he added.
“When I say proposals, these are proposals for which funds are tied up. In fact, Rs 2,000 crore worth of proposals were received last week. There are several other companies that are in advanced stages of finalising their proposals, but we have not considered them yet,” said Kumar.
He, however, did not name the 12 companies.
Recently, telecom minister Kapil Sibal was quoted as saying that Bosch Electronics and Samsung have applied for the M-SIPS scheme.
Target set
The Department has set a target of accepting proposals worth Rs 25,000 crore by the current fiscal-end, Kumar said. By 2020, the Government intends to bring in investments of about $100 billion in the electronic equipment manufacturing industry, through its ‘National Policy on Electronics 2012’.
Under the M-SIPS, the Government will provide up to Rs 10,000 crore in benefits to the industry between 2012 and 2017 for promoting the production of electronics products and components.
The scheme will provide subsidy for investments in capital expenditure with a limit of 20 per cent for investments in the Special Economic Zone and 25 per cent in non-SEZs. Investors will also get reimbursement of countervailing duties and excise for capital equipment for units set up outside the SEZs. The incentives would be provided for firms engaged in electronic design and manufacturing.
According to a 2009 task force report, the demand for electronics hardware in India is set to go up to $400 billion by 2020, but at the current growth rate, the domestic industry would be able to cater to demand worth $104 billion, while the rest would need to be imported.
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