Lok Sabha Question No. 2367 (UNSTARRED), answered on 2022-03-16
Subject: PCB Manufacturing
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Raksha Nikhil Khadse, Manoj Kishorbhai Kotak

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 2367

TO BE ANSWERED ON: 16.03.2022

## PCB  MANUFACTURING

## 2367. SHRIMATI  RAKSHA NIKHIL KHADSE: SHRI MANOJ KOTAK:

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

- (a) whether the Government proposes to manufacture and expand activities in manufacturing of Semi-Conductors and
- Printed Circuit Board (PCB) having very large usage in the electronics industries to curb the large quantity imports;
- (b) if so, the details thereof;
- (c) whether the Government also proposes to inhouse manufacture of Lithium-Ion Batteries to large scale; and
- (d) if so, the detailed plan and road map in this regard?

## ANSWER

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

- (a): Yes, Sir.  Government of India's goal is to make India a significant design and manufacturing hub in the Global Value Chain for Electronics as part of its AtmaNirbhar Bharat economic policies. As part of this, we are broadening and  deepening  our  electronic  manufacturing  ecosystem  including  components  like  Printed  Circuit  Boards(PCBs)  . Global companies are looking to diversify their manufacturing locations to mitigate the supply chain risks.

National Policy on Electronics 2019 (NPE 2019) envisions positioning India as a global hub for Electronics System Design  and  Manufacturing  (ESDM)  by  encouraging  and  driving  capabilities  in  the  country  for  developing  core components and creating an enabling environment for the industry to compete globally.

Government is also  very  focussed  on  its  important  objective  of  building  the  overall  semiconductor  ecosystem  and ensure that, it in-turn catalyses India's rapidly expanding electronics manufacturing and innovation ecosystem. This vision of AtmaNirbharta in electronics & semiconductors was given further momentum by the Union Cabinet chaired by the Hon'ble Prime Minister approving the Semicon India programme with a total outlay of INR 76,000 crore for the  development  of  semiconductor  and  display  manufacturing  ecosystem  in  our  country.  The  programme  aims  to provide  financial  support  to  companies  investing  in  semiconductors,  display  manufacturing  and  design  ecosystem. This will serve to pave the way for India's growing presence in the global electronics value chains.

- (b):    Following four schemes have been introduced under the Semicon India programme:
- i. Scheme  for  setting  up  of  Semiconductor  Fabs  in  India provides  fiscal  support  to  eligible  applicants  for setting up of Semiconductor Fabs which is aimed at attracting large investments for setting up semiconductor wafer fabrication facilities in the country. Following fiscal support was approved under the scheme:
-  28nm or Lower - Up to 50% of the Project Cost
-  Above 28 nm to 45nm - Up to 40% of the Project Cost
-  Above 45 nm to 65nm - Up to 30% of the Project Cost
- ii. Scheme for setting up of Display Fabs in India provides fiscal support to eligible applicants for setting up of Display Fabs which is aimed at attracting large investments for setting up TFT LCD / AMOLED based display fabrication facilities in the country. The Scheme provides fiscal support of up to 50% of Project Cost subject to a ceiling of INR 12,000 crore per Fab.
- iii. Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India: The Scheme provides a fiscal  support  of  30%  of  the  Capital  Expenditure  to  the  eligible  applicants  for  setting  up  of  Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fab and Semiconductor ATMP / OSAT facilities in India.
- 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.

In  addition  to  the  above  schemes,  Government  has  also  approved  modernisation  of  Semi-Conductor  Laboratory, Mohali as a brownfield Fab.

Further, following schemes of Government  of India, incentivise Electronics Manufacturing including  PCB manufacturing:

- (i) Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing was notified on 1 st April, 2020. PLI Scheme extends an incentive of 6% to 4% on incremental sales (over base year) of goods under target segments  (Mobile  Phones  and  Specified  Electronic  Components)  that  are  manufactured  in  India  to  eligible companies, for a period of  five  (5)  years  subsequent  to the  base  year  (FY  2019-20).  Incentives  are applicable under  the  scheme  from  01.08.2020.  Further,  Second  Round  of  the  PLI  Scheme  with  the  target  segment  of Specified Electronic Components was launched on 11.03.2021 incentivizing 5% to 3% on incremental sales to eligible companies, for a period of four (4) years.
- Printed Circuit Board (PCB) are covered under the specified electronic components. 22 applicants have been approved under  the  Target  Segment  -  Specified  Electronic  Components.  8  out  of  22  applicants  have  proposed  to manufacture PCBs.
- (ii) Scheme  for  Promotion  of  Manufacturing  of  Electronic  Components  and  Semiconductors(SPECS) was notified  on 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 applications till 31.03.2023. Under this scheme, 2 applications with proposed investment worth ₹ 48.32 crore have been approved for manufacturing of PCBs.
- (iii) Modified Special Incentive Package Scheme (MSIPS) -  In order to promote large scale manufacturing in the country, MSIPS was announced by the Government in July 2012. It has been amended twice - in August, 2015 and in January, 2017, and mainly provide Capex subsidy of 20-25%. It has been closed on 31st December, 2018

to receive new applications. Under MSIPS, 16 applications have been approved for manufacturing of PCB with proposed investment of INR 1376.96 crore.

- (c):  Yes, Sir. Government of India intends to incentivize potential investors, both domestic and overseas, to set-up Giga-scale  Advance  Chemistry  Cell  (ACC)  manufacturing  facilities  with  emphasis  on  maximum  value  addition, quality output, and achieving pre-committed capacity level.
- (d):  Government of India approved the 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage' to promote Make in India and to attract global investments into setting-up of 'Gigafactories' in India for manufacturing of Advance Chemistry Cells (ACC) in the country vide Notification dated 12 th May,  2021. The total outlay of the scheme is Rs. 18,100 crore for a period of 5 years. The scheme envisages establishing a competitive ACC battery manufacturing  set  up  in  the  country  with  a  targeted  capacity  of  50  GWh.  Additionally,  5GWh  of  niche  ACC technologies  is  also  covered  under  the  scheme.  The  scheme  proposes  a  Production  Linked  Incentive  based  on applicable subsidy per KWh and percentage of value addition achieved on actual sales made by the manufacturers who set up production units.

Government  released  a  Request  for  Proposal  for  inviting  proposals  under  the  PLI  scheme  for  setting  up  of manufacturing facilities for National Programme on ACC Battery Storage in India, wherein Government has received bids to the tune of 2.6 times the manufacturing capacity to be awarded i.e. 50 GWh.

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