Lok Sabha Question No. 135 (UNSTARRED), answered on 2022-12-07
Subject: Promotion of IT Schemes
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Nakul K. Nath, Sunil Kumar Mondal

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK  SABHA

## UNSTARRED   QUESTION NO. 135

TO BE ANSWERED ON 07.12.2022

## PROMOTION OF IT SCHEMES

## 135.     SHRI NAKUL KAMAL NATH: SHRI SUNIL KUMAR MONDAL:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state: -

- (a) the  details  of  the  total  number  of  programmes/schemes  launched  and  implemented  by  the Government  for  the  development  of  Electronics  and  Information  Technology  after  2014  till  date, State/UT-wise, including in West Bengal;
- (b) the  details  of  these  programmes/schemes  which  are  still  existing/renamed  along  with  the  future initiatives in this regard; and
- (c) the allocation of budget to these schemes after 2014 till date?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAJEEV CHANDRASEKHAR)

- (a)  and (b):    Government of India's goal is to make  India a significant Electronics System Design and Manufacturing hub as part of its Atma Nirbhar Bharat economic policies. In this regard, Government has taken several strategic steps and initiatives for broadening and deepening our electronic manufacturing ecosystem. The details of Pan-India Schemes are provided in Annexure-I and the details of State-wise Schemes are provided in Annexure-II.
- (c): Allocation of budget to these schemes after 2014 till date:

Rs. in Crores

| Schemes/Programmes                                               | Budget Estimates (after 2014 till date)   | Revised Estimates (after 2014 date)   |
|------------------------------------------------------------------|-------------------------------------------|---------------------------------------|
| EMC 2.0                                                          | 3762.25                                   | 3762.25                               |
| SPECS                                                            | 2386                                      | 2386                                  |
| PLI scheme for LSEM                                              | 40,995                                    | 40,995                                |
| PLI scheme for IT Hardware                                       | 7350                                      | 7350                                  |
| Development of Semiconductors and Display Fab Ecosystem in India | 0.00                                      | 200.00                                |

********

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  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  01.04.2020  provides  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.

Over the next 5 years, the 16 approved companies are expected to lead to total  production of more than INR 10,50,000 crore (INR 10.5 lakh crore). Out of the total production of INR 10,50,000 crore in the next 5 years, around 60% is expected to be contributed by exports of the order of INR 6,50,000 crore.  The  companies  approved  under  the  scheme are expected  to  bring  an additional  investment in electronics manufacturing to the tune of INR 11,000 crore and generate employment to the tune of 2 lakh direct jobs.

After the success of the First Round of Production Linked Incentive Scheme in attracting investments in mobile phone and electronic component manufacturing, Second Round of the PLI Scheme for Large Scale Electronics Manufacturing was launched on 11.03.2021 for incentivising specified electronic components .  Under the Second Round, incentives of 5% to 3% are being provided on incremental sales (over base year i.e. 2019-20) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of four (4) years.

Over the next 4 years, the 16 approved electronic component manufacturers are expected to generate a total production of up to INR 12,432 crore . The Second Round of the Scheme is expected to bring an additional investment in electronics manufacturing to the tune of INR 573 crore .

- ii. Production Linked Incentive Scheme (PLI) for IT Hardware which was notified on 03.03.2021. This  scheme extends an incentive  of  4%  to  2%  /  1%  on  net  incremental  sales  of  goods  under  target segments  -  Laptops,  Tablets,  All-in-One  Personal  Computers  (PCs)  and  Servers.  The  total  approved scheme outlay is ₹ 7,350 crore and 14 companies (Categories: IT Hardware Companies - 4, Domestic Companies - 10)   and   have been approved under the PLI Scheme including some major global brands EMS and OEMs.
- iii.  Scheme  for  Promotion  of  Manufacturing  of  Electronic  Components  and  Semiconductors (SPECS) notified vide Gazette Notification dated April 01, 2020 provides 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. The Scheme is open to receive application till 31.03.2023.

Under the scheme, thirty Two (32) applications have been approved till 30.11.2022 with total project outlay of  Rs.11,130  crore  and committed  incentives of  Rs  1,519  crore.  The  total employment generation potentia l of the approved applications is 32,457.

- iv.  Modified  Electronics  Manufacturing  Clusters  (EMC  2.0)  Scheme notified vide Gazette Notification  No.CG-DL-E-01042020-218991  dated  April  01,  2020  provides  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 provides financial assistance for setting up of both EMC projects and Common Facility Centres (CFCs) across the country. The budgetary outlay of

the scheme is Rs. 3,762.25 crore for a period of 8 years from the date of its notification including initial period of 3 years for receipt of application.

## v.  Electronics Development Fund(EDF):

Electronics  Development  Fund(EDF)  notified  vide  Gazette  Notification  No.8(9)/2011-IPHW  dated January  06, 2015, Electronics Development Fund (EDF) is set up as a 'Fund of Funds' to participate in professionally managed 'Daughter Funds' which in turn provides risk capital to companies developing new technologies in the area of Electronics, Nano-electronics and  Information Technology (IT). This fund is expected to foster R&D and innovation in these technology sectors. EDF enables creation of an ecosystem for providing risk capital to industry to undertake market driven Research and Development in  these  technology  areas.  It  will,  in  the  process,  enrich  the  intellectual  property  in  the  country  and encourage more entrepreneurs towards product and technology development.EDF has drawn Rs. 216.33 crore from its contributors, which includes Rs. 210.33 crore from MeitY. EDF is expected to invest in 8 Daughter Funds and the amount committed by EDF to these 8 Daughter Funds was Rs. 271.30 crore.

## 2. Modified programme for development of semiconductors and display manufacturing ecosystem in India:

In furtherance of the vision of Aatmanirbhar Bharat and positioning India as the global hub for ESDM, the Cabinet approved the comprehensive program for the development of a sustainable semiconductor and  display  ecosystem  in  the  country  with  an  outlay  of  ₹  76,000  crore  (>10  billion  USD).  The programme will usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design. This shall  pave  the  way  for  India's  technological  leadership  in  these  areas  of  strategic  importance  and economic self-reliance. Following four schemes have been introduced under the aforesaid programme:

- i)  'Modified Scheme for setting up of Semiconductor Fabs in India' for attracting large investments for  setting  up  semiconductor  wafer  fabrication  facilities  in  the  country  to  strengthen  the  electronics manufacturing ecosystem and help establish a trusted value chain. The Scheme extends a fiscal support of 50% of the project cost on pari-passu basis for setting up of Silicon CMOS based Semiconductor Fab in India.
2. ii)    'Modified  Scheme for setting up of Display Fabs in India' for  attracting  large  investments  for manufacturing TFT LCD or AMOLED based display panels in the country to strengthen the electronics manufacturing ecosystem. Scheme extends fiscal support of up to 50% of Project Cost on pari-passu basis for setting up of Display Fabs in India.
3. iii)  'Modified Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab  /  Discrete  Semiconductors  Fab  and  Semiconductor  Assembly,  Testing,  Marking  and Packaging (ATMP) / OSAT facilities in India' shall  extends a fiscal support of 50% of the Capital Expenditure on pari-passu basis for setting up of Compound Semiconductors / Silicon Photonics (SiPh) /  Sensors  (including  MEMS)  Fab/  Discrete  Semiconductor  Fab  and  Semiconductor  ATMP  /  OSAT facilities in India.
4. iv)  'Design Linked Incentive (DLI) Scheme' offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design. The scheme provides 'Product Design Linked Incentive' of up to 50% of the eligible expenditure subject to a  ceiling  of  ₹15  Crore  per  application  and  'Deployment  Linked  Incentive'  of  6%  to  4%  of  net  sales turnover over 5 years subject to a ceiling of ₹30 Crore per application.

## Details of various programmes/schemes undertaken by MeitY in West Bengal :

1. Technology  Incubation  and  Development  of  Entrepreneurs  (TIDE  2.0  Scheme): MeitY  has initiated this scheme in the year 2019 to promote tech entrepreneurship through financial and technical support  to  incubators  engaged  in  supporting  ICT  startups  primarily  engaged  in  using  emerging technologies  such  as  IoT,  AI,  Block-chain,  Robotics  etc.  in  seven  pre-identified  areas  of  societal relevance. The Scheme is being implemented through 51 incubators through a three tiered structure with an  overarching  objective  to  promote  incubation  activities  at  institutes  of  higher  learning  and  premier R&D organisations,  eventually  leading  to  handholding  of  approximately  2000  tech  start-ups  over  a

period of five  years.The scheme has a total outlay of Rs 264.62 Crore over a period of 5  years. The state-wise list  of  incubation  centres  that  are  being  supported  under  TIDE  2.0  scheme  are  annexed  as Annexure-I.

Under TIDE 2.0 Scheme, 1 incubation centre namely 'IIM Calcutta Innovation Park' is functioning as TIDE 2.0 centre in the State of West Bengal:

2. Technology  Incubation  and  Development  of  Entrepreneurs  (TIDE)  Scheme: Technology Incubation  and  Development  of  Entrepreneurs  (TIDE)  Scheme  was  put  in  place  by  Ministry  of Electronics  and  Information  Technology  (MeitY)  in year 2008 to  promote  innovation  by  nurturing startups in Information Technology, Communications & Electronics (ICTE) domain. Under the TIDE Scheme,  financial  assistance  is  provided  to  Institutions  of  Higher  Learning  to  strengthen  their Technology Incubation Centres for enabling young  entrepreneurs to create technology startup companies for commercial exploitation of technologies developed by them. The scheme was initiated with an outlay of Rs 23.40 crores for supporting 15 TIDE centres, the scheme was expanded to include additional 12 TIDE centres in the year 2009 with an additional outlay of Rs 25.934 crores. Under the scheme,  27  TIDE  Centres  and  2  Virtual  TIDE  centres  have  been  supported  at  institutes  of  higher learning all over India. TIDE 1.0 scheme was formally closed on 31.03.2020.

As currently TIDE 1.0 scheme was ended on 31.03.2020. In the state of West Bengal, one TIDE centre namely 'Indian Institute of Technology, Kharagpur' was operated.

## Details of various programmes/schemes undertaken by MeitY in Andhra Pradesh :

## Centre of Entrepreneurship on Industry 4.0 at RINL Visakhapatnam:

The  demand  of  Industry  4.0  products  &  solutions  is  going  to  rise  exponentially  in  the  backdrop  of growing  Industrial  Automation.  Strengthening  domestic  capabilities  of  Industry  4.0  products  & solutions will take the domestic industry up the value-chain significantly by way of increase in products, patents & IPR. In order to boost start-ups in these fields, a Centre of Excellence in the field of Industry 4.0 (Artificial Intelligence, Machine Learning, Augmented Reality, Virtual Reality, Industrial Automation,  Industrial  Robotics,  Industrial  Drone,  Industrial  IoT,  Industrial  3D  Printing  and  other related technologies powered by AI) at RINL Visakhapatnam is being established. This CoE plans to nurture 175 startups over a period of 5 years.  The project was approved on 14.10.2021. The total outlay of the project is Rs 20.32 Cr (MeitY contribution- Rs 8.32 Cr)

## Details of various programmes/schemes undertaken by MeitY in Tamil Nadu :

## iTamil Nadu Technology (iTNT) Hub in Chennai

In  order  to  establish  a  Software  products  Cluster  under  NPSP,  the  1st  cluster  titled  iTamil  Nadu Technology  (iTNT)  Hub  in  Chennai  is  being  established.  The  primary  objective  of  Tamil  Nadu Technology Hub will be to nurture the deep tech innovation ecosystem in Tamil Nadu that can guide, develop, implement and support startups, especially in a scaling up phase in deep tech. iTNT Hub shall support  200  numbers  of  start-ups  /  accelerated  in  technology  space  preferably  in  deep  tech/emerging tech over a period of five years. In addition to that 200 start-ups over a period of five years shall be supported in the hub and spoke model and provided acceleration and infrastructural service. The project was approved on 03.03.2022 for a period of 5 years, The total outlay of the project is 54.61 Cr (MeitY contribution 27 Cr).

## BPO schemes:

To  create  employment  opportunities  and  dispersal  of  IT/ITES  industry  in  small  cities  and  towns, Government had launched two BPO promotion schemes, namely North East BPO Promotion Scheme (NEBPS) and India BPO Promotion Scheme (IBPS) under Digital India Program in the year 2015 and 2016 with an outlay of Rs. 50 crore and Rs. 493 crore respectively. These schemes aim to incentivize setting up of BPO/ITES operations by providing 50% financial support up to ₹ 1 lakh per seat in the form of viability gap funding. The duration of IBPS and NEBPS was up to 31.03.2019 and 31.03.2020 respectively to invite new bids, however disbursement of financial support may go beyond this period as per scheme timelines. Since the inception of these schemes, 246 units have setup BPO/ITES operations across 27 States/UTs of the country, providing direct employment to 51,492 persons. Out of these, 6 units have setup operations in West Bengal providing direct employment to 274 persons.

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## Annexure-II

## State/ UT-wise break up of 51 TIDE 2.0 Incubation Centres

|   Sl. | Name of the States   | Name of the Incubation Centre                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-------|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     1 | Andhra Pradesh       | 1) Andhra Pradesh Innovation Society, Chittoor 2) Centre for Innovation Incubation &Entrepreneurship (CIIE), KL University, Guntur 3) Grameena Incubation Centre, Vishakhapatnam 4) IIM Visakhapatnam Incubation Center, Visakhapatnam 5) CIE IIIT Hyderabad (International Institute of Information Technology - Hyderabad Foundation) 6) Centre for Innovation and Entrepreneurship Development at IIITS, Sri City, Chittoor 7) Atal Incubation Centre - ALEAP We-Hub, Hyderabad (Association of Lady Entrepreneurs of India)                   |
|     2 | Assam                | Down Town Venture Labs, Assam Down Town University, Guwahati, Assam                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|     3 | Bihar                | Enterprising Zone, Patna                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|     4 | Chhattisgarh         | Atal Incubation Centre @36INC Society, Raipur                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|     5 | Haryana              | Amity Innovation Incubator, Gurugram                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|     6 | Himachal Pradesh     | IIT Mandi Catalyst, IIT Mandi                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|     7 | Gujarat              | 1) Centre for Innovation Incubation and Entrepreneurship (CIIE), IIM Ahmedabad 2) International Centre for Entrepreneurship and Technology (iCreate), Ahmedabad 3) Gujarat University Startup and Entrepreneurship Council                                                                                                                                                                                                                                                                                                                        |
|     8 | Karnataka            | 1) KLE Centre for Technology Innovation and Entrepreneurship, KLE Technological University, Dharwad 2) Nadathur S Raghavan Centre for Entrepreneurial Learning (NSRCEL), IIM Bangalore 3) Society for Innovation &Development (SID), IISc Bangalore 4) Bio Incubator at C-CAMP, Centre for Cellular and Molecular Platforms, Bengaluru 5) Dayananda Sagar Entrepreneurship Research &Business Incubator (DERBI) Foundation, Bengaluru 6) IIITB Innovation Centre (International Institute of Information Technology Bangalore - Innovation Centre |
|     9 | Kerala               | Maker Village-Kochi, IIITM-Kerala                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    10 | Madhya Pradesh       | Technology Innovation and Incubation Centre (TIIC), Atal Bihari Vajpayee Indian Institute of Information Technology& Management (ABV-IIITM), Gwalior                                                                                                                                                                                                                                                                                                                                                                                              |
|    11 | Maharashtra          | 1) Society for Innovation and Entrepreneurship (SINE), IIT Bombay 2) Sandip Technology Business Incubator (TBI), Sandip University, Nashik 3) AIC-Pinnacle Entrepreneurship Forum, Pune                                                                                                                                                                                                                                                                                                                                                           |
|    12 | Odisha               | 1) KIIT Technology Business Incubator (KIIT-TBI), KIIT, Bhubaneswar 2) Foundation for Technology &Business Incubation (FTBI), NIT                                                                                                                                                                                                                                                                                                                                                                                                                 |

|     |                                          | Rourkela                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13. | Punjab                                   | Science &Technology Entrepreneurship Park, Thapar Institute of Engineering &Technology (TIET), Patiala                                                                                                                                                                                                                                                                                                                                                                                 |
| 14. | Rajasthan                                | 1) Pilani Innovation and Entrepreneurship Development Society, BITS Pilani 2) Atal Incubation Centre, Banasthali Vidyapith, Tonk 3) IIM Udaipur Incubation Centre, Udaipur 4) JECRC Incubation Centre (JECRC University, Jaipur)                                                                                                                                                                                                                                                       |
| 15. | Tamil Nadu                               | 1) FORGE Accelerator (Coimbatore Innovation Business Incubator), Coimbatore 2) PSG Science and Technology Entrepreneurial Park (PSG- STEP), PSG College of Technology, Coimbatore 3) OASYS Institute of Technology, Anna University, Tiruchirapalli 4) Vel Tech Technology Business Incubator, Vel Tech Institute of Science and Technology, Tiruvallur 5) IITM Incubation Cell (IIT Madras Incubation Cell) 6) Vellore Institute of Technology-Technology Business Incubator (VITTBI) |
| 16. | Telangana                                | 1) SR Innovation Exchange, Warangal Affiliated to JNTU, Hyderabad 2) Atal Incubation Centre - Centre for Cellular &Molecular Biology (AIC-CCMB), Hyderabad 3) i-TIC Foundation, IIT Hyderabad                                                                                                                                                                                                                                                                                          |
| 17. | Uttarkhand                               | TIDE Business Incubator, IIT Roorkee                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 18. | Uttar Pradesh                            | 1) Startup Incubation and Innovation Centre (SIIC), IIT Kanpur 2) ABES Engineering College, Ghaziabad 3) Krishna Path Incubation Society (Technology Business Incubator) KIET,Ghaziabad                                                                                                                                                                                                                                                                                                |
| 19. | West Bengal                              | IIM Calcutta Innovation Park, Kolkata                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|     | Union Territory                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 1.  | Delhi (NCT - National Capital Territory) | 1) Foundation for Innovation and Technology Transfer(FITT), IIT Delhi 2) Delhi Innovation &Incubation Centre, IIIT Delhi                                                                                                                                                                                                                                                                                                                                                               |
| 2.  | Chandigarh                               | Chitkara Innovation Incubator Foundation (CIIF), Chitkara University, Chandigarh                                                                                                                                                                                                                                                                                                                                                                                                       |
| 3.  | Jammu and Kashmir                        | NewGen IEDC Business Innovation and Incubation Centre, University of Kashmir, Srinagar                                                                                                                                                                                                                                                                                                                                                                                                 |

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