Lok Sabha Question No. 671 (UNSTARRED), answered on 2020-09-16
Subject: Atma Nirbhar Bharat
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Nihal Chand Chauhan, Jaskaur Meena

## GOVERNMENT OF INDIA

## MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 671

TO BE ANSWERED ON: 16.09.2020

## ATMA NIRBHAR BHARAT

## 671.   SHRI NIHAL CHAND: SHRIMATI  JASKAUR MEENA:

Will the Minister of Electronics and Information Technology be pleased to state:

- (a) the salient features of the 'Atma Nirbhar Bharat' project;
- (b) whether the Government has made any agreement with Atal Innovation Mission in this regard;
- (c) if so, the details thereof;
- (d) the details of estimated funds allocated by the Government in this regard;
- (e) the details of the target set there under; and
- (f) whether the State of Rajasthan has also been included in the said scheme and if so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI SANJAY DHOTRE)

- (a) Atma Nirbhar Bharat is the vision of Government for further strengthening India's endeavour for  a  self-reliant  nation.  Government  of  India  launched  Digital  India  AatmaNirbhar  Bharat Innovate Challenge to give push to Indian App ecosystem through shortlisting of the top Indian Apps that have the potential to become global competitors in their respective categories.  Several steps listed at Annexure-1 have been taken by the Government to promote domestic electronics manufacturing with the objective of becoming self-reliant in the sector.
- (b) and (c):  The Aatma Nirbhar App innovation Challenge was jointly organised by MeitY and Atal Innovation Mission, NITI Aayog with active partnership of Meity Startup Hub (MSH) and MyGov. All stakeholders were involved from conceptualization to evaluation stage.
- (d) and (e):  The winners in each category would be given cash award amounting to INR 20 Lakh as first prize, INR 15 Lakh as second prize and INR 10 Lakh as third prize. A total of 9 categories were identified for awards in which 24 Apps have been rewarded and another 20 have been given special mention by the Jury. List of such Apps rewarded is at Annexure-2. The outlay of the three new schemes for promotion of electronics hardware manufacturing notified on April 1, 2020, is as under:
- (i) Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing: INR 40,995 crore.
- (ii) Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS): INR 3,285 crore.
- (iii) Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme: INR 3,762 crore.
- (f) The Digital India AatmaNirbhar Bharat App Innovation Challenge was open to all Indian entrepreneurs and Start-ups across the country including from State of Rajasthan. The incentives for  electronics  hardware manufacturing are applicable for all the States, including the State of Rajasthan.

******

Annexure-1

## Steps taken by the Government to promote domestic electronics manufacturing

1. National Policy on Electronics 2019 :  The National Policy on Electronics 2019 (NPE 2019) has been notified on 25.02.2019. The vision of NPE 2019 is to position India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and  driving  capabilities  in  the  country  for  developing  core  components,  including chipsets, and creating an enabling environment for the industry to compete globally.

To  attract  and  incentivize  large  investments  in  the  electronics  value  chain  and  promote exports, following three Schemes have been notified under the aegis of NPE 2019:

- (i) Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing notified  vide  Gazette  Notification  No.CG-DL-E-01042020-218990  dated  April  01, 2020 shall extend an incentive of 4% to 6% to eligible companies on incremental sales (over  base  year)  involved  in  mobile  phone  manufacturing  and  manufacturing  of specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.
- (ii) Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) notified vide Gazette Notification No.CG-DL-E-01042020218992  dated  April  01,  2020  shall  provide  financial  incentive  of  25%  on  capital expenditure for the identified list of electronic goods that comprise downstream value chain  of  electronic  products,  i.e.,  electronic  components,  semiconductor/  display fabrication  units,  ATMP  units,  specialized  sub-assemblies  and  capital  goods  for manufacture of aforesaid goods.
- (iii) Modified  Electronics  Manufacturing  Clusters  (EMC  2.0)  Scheme notified  vide Gazette  Notification  No.CG-DL-E-01042020-218991  dated  April  01,  2020  shall provide support for creation of world class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers along with their supply chain to set up units in the country. The Scheme shall provide financial assistance for setting up of both EMC projects and Common Facility Centres (CFCs) across the country.
2. 100% FDI : As per extant Foreign Direct Investment (FDI) policy, FDI up-to 100% under the  automatic  route  is  permitted  for  electronics  manufacturing  (except  from  countries
- sharing land border with India), subject to applicable laws/ regulations; security and other conditions.
3. Modified Special Incentive Package Scheme (M-SIPS) : The Scheme was notified on 27 th July, 2012 to provide financial incentives to offset disability and attract investments in the electronics manufacturing sector. It was amended in August, 2015 to extend the period  of  the  scheme,  enhance  scope  of  the  Scheme  by  including  15  more  product verticals, and attract more investment. The scheme was further amended in January, 2017 to expedite the investments. The scheme provides subsidy for capital expenditure - 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs. The incentives are available for 44 categories / verticals of electronic products and components covering entire  electronics  manufacturing  value  chain.  The  Scheme  was  open  to  receive applications till 31.12.2018 and is in the implementation mode.
4. Electronics  Manufacturing  Clusters  (EMC)  Scheme :  Electronics  Manufacturing Clusters Scheme was notified on 22 nd October, 2012 to provide support for creation of world-class  infrastructure  along  with  common  facilities  and  amenities  for  attracting investment. Under the Scheme, 20 Greenfield EMCs and 3 Common Facility Centres (CFCs)  measuring  an  area  of  3,565  acres  with  total  project  cost  of  INR  3,898  crore including Government Grant-in-Aid of INR 1,577 crore have been approved.
5. Electronics Development Fund (EDF) : Electronics Development Fund (EDF) has been set up as a 'Fund of Funds' to participate in professionally managed 'Daughter Funds' which  in  turn  will  provide  risk  capital  to  startups  and  companies  developing  new technologies in the area of electronics and Information  Technology (IT). This fund is expected to foster R&D and innovation in these technology sectors. INR 659 crore has been committed through EDF to 11 Daughter Funds with a targeted corpus of INR 5,500 crore.
6. Phased  Manufacturing  Programme  (PMP) has  been  notified  to promote  domestic value addition in mobile handsets and their sub-assemblies / parts manufacturing. As a result,  India  has  rapidly  started  attracting  investments  into  this  sector  and  significant manufacturing capacities have been set up in the country. The manufacturing of mobile handsets  has  been  steadily  moving  from  Semi  Knocked  Down  (SKD)  to  Completely Knocked  Down  (SKD)  level,  thereby  progressively  increasing  the  domestic  value addition.
7. Tariff Structure has been rationalized to promote domestic manufacturing of electronic goods, including, inter-alia, Cellular mobile handsets, Televisions, Electronic components, Set Top Boxes for TV, LED products and Medical electronics equipment.
8. Exemption from Basic Customs Duty on capital goods :  Notified  capital  goods  for manufacture  of  specified  electronic  goods  are  permitted  for  import  at  'NIL'  Basic Customs Duty.
9. Simplified  import  of  used  plant  and  machinery :  The  import  of  used  plant  and machinery  having  a  residual  life  of  at  least  5  years  for  use  by  the  electronics manufacturing industry has been simplified through the amendment of Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, vide Ministry of Environment, Forest and Climate Change Notification dated 11.06.2018.
10. Relaxing  the  ageing  restriction :  The  Department  of  Revenue  vide  Notification No.60/2018-Customs  dated  11.09.2018  has  amended  the  Notification  No.158/95Customs dated 14.11.1995, relaxing the ageing restriction from 3 years to 7 years for specified electronic goods manufactured in India and re-imported into India for repairs or reconditioning.
11. Public Procurement (Preference to Make in India) Order :  To encourage 'Make in India' and to promote manufacturing and production of goods and services in India with a  view  to  enhancing  income  and  employment,  the  Government  has  issued  Public Procurement  (Preference  to  Make  in  India)  Order  2017  vide  the  Department  for Promotion  of  Industry  and  Internal  Trade  (DPIIT)  Order  dated  15.06.2017  and subsequent  revisions  vide  Orders  dated  28.05.2018,  29.05.2019  and  04.06.2020.  In furtherance  of  the  aforesaid  Order,  MeitY  has  notified  13  Electronic  Products  viz., Desktop PCs, Laptop PCs, Thin Clients, Tablet PCs, Computer Monitors, Dot Matrix Printers, Contact and Contactless Smart Cards, LED Products, Biometric Access Control /  Authentication  Devices,  Biometric  Finger  Print  Sensors,  Biometric  Iris  Sensors  and Servers vide Notification dated 07.09.2020.
12. Compulsory  Registration  Order  (CRO) : MeitY  has notified 'Electronics and Information Technology Goods (Requirement of Compulsory Registration) Order, 2012' for  mandatory  compliance  to  ensure  safety  of  Indian  citizens  by  curbing  import  of substandard and unsafe electronic goods into  India.  44 Product Categories have been notified under the CRO.
13. National Centre of Excellence in Large Area Flexible Electronics (NCFLEX) has been  set  up  in  IIT-Kanpur  with  the  objectives  to  promote  R&D;  Manufacturing; Ecosystem;  Entrepreneurship;  International  Partnerships  and  Human  Resources  and develop prototypes in collaboration with industry for commercialization.
14. National Centre of Excellence for Technology on Internal Security (NCETIS) has been set up at IIT-Bombay with the objective to address the internal security needs of the nation  on  continuous  basis  by  delivering  technology  prototypes  required  for  internal security and to promote domestic industry in internal security.
15. National  Centre  of  Excellence  for  Next  Generation  AMOLED  Displays,  OLED Lighting and OPV Products has been set up at IIT-Madras with a mandate to collaborate with  stakeholders  to  develop  next-generation,  state-of-the-art,  high-volume  and  cost effective  electronic  components  based  on  organic  devices  to  address  requirements through joint technology developments, to realize indigenous technologies for manufacturing.
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## 24 Winners of AatmaNirbhar App Challenge

| Category          |   Position | App                                                |
|-------------------|------------|----------------------------------------------------|
| Business          |          1 | Zoho Invoice, Books &Expense                       |
|                   |          2 | Mall91 - Earn by refer, Save by Shopping in Groups |
|                   |          3 | GimBooks- Easy Invoice Manager                     |
| eLearning         |          1 | Disprz                                             |
|                   |          2 | Kutuki Kids Learning App                           |
|                   |          3 | Hello English: Learn English                       |
| Entertainment     |          1 | CaptionPlus                                        |
|                   |          2 | Meme Chat                                          |
|                   |          3 | FTC Talent                                         |
| Games             |          1 | HitWicket Superstars                               |
|                   |          2 | ScarFall- The Royale Combat                        |
|                   |          3 | World Cricket Championship 2                       |
| Health            |          1 | StepSetGo (SSG) - Step Earn Redeem                 |
|                   |          2 | iMumz - Week by week Pregnancy Program             |
| News              |          1 | Logically - Check Fake News and Verify Facts       |
|                   |          2 | IsEqualTo - Daily News, Quiz and GK for Students   |
| Office            |          1 | Zoho Cliq &Workspace                               |
|                   |          2 | SureMDM                                            |
| Others            |          1 | MapmyIndia Move: Maps, Navigation &Tracking        |
|                   |          2 | AskSarkar                                          |
|                   |          3 | myITreturn                                         |
| Social            |          1 | Chingari - Original Indian Short Video App         |
| TIE (Equal Marks) |          2 | Koo: Follow Top Indians &News in Indian Languages  |
| TIE (Equal Marks) |          2 | YourQuote -India's Largest Writing App             |

## Annexure-2