Lok Sabha Question No. 5268 (UNSTARRED), answered on 2025-04-02
Subject: Promotion of Electronics and IT Industry in Tribal Areas
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Shri Abhay Kumar Sinha

## GOVERNMENT OF INDIA

## MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 5268

TO BE ANSWERED ON: 02.04.2025

## PROMOTION OF ELECTRONICS AND IT INDUSTRY IN TRIBAL AREAS

## †5268. SHRI ABHAY KUMAR SINHA:

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

- (a)  whether  the  Government  is  implementing  any  special  scheme  to  promote  Electronics  and Information Technology (IT) industry in tribal areas and if so, the details thereof;
- (b) the number of new IT parks, startup hubs and digital infrastructure projects set up in tribal areas  of  Bihar  during  the  last  five  years  and  the  number  of  proposed  projects  in  this  regard, district-wise particularly in Aurangabad district;
- (c) whether the Government is taking any special initiatives to provide employment opportunities in IT sector and digital skill training to tribal youth; and
- (d)  the  fresh/new  steps  being  taken  by  the  Government  to  strengthen  digital  services,  internet connectivity and cyber security in tribal and remote areas?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA)

(a) to (d): There are various schemes of Government of India for promoting domestic electronics hardware manufacturing and Information Technology in the country under  'Make in India' and 'Digital India' programmes of the Government of India. The steps taken by the Government for promotion of domestic electronics  manufacturing  and  Information  Technology  in  the  country, including tribal areas, are at Annexure-I and Annexure-II . Software Technology Parks of India (STPI)  has  set-up  two  (2)  centres  in  the  State  of  Bihar  in  Bhagalpur  and  Patna  districts. Additionally,  the  Government  of  India  has  approved  setting  up  of  a  new  STPI  centre  at Darbhanga.

The  schemes  and  programmes  of  the  Government  have  led  to  the  generation  of  employment opportunities  in  the  IT  industry.  As  per  the  National  Association  of  Software  and  Service Companies  (NASSCOM),  currently  Indian  IT  Industry  has  provided  direct  employment opportunities  to  5.8  million  persons.  For  skilling,  through  477  Eklavya  Model  Residential Schools  (EMRS),  the  Ministry  of  Tribal  Affairs  is  implementing  Smart  classrooms  equipped with digital boards are being established in partnership with Education and Research Network of India  (ERNET  India),  an  autonomous  society  of  Ministry  of  Electronics  and  Information Technology (MeitY), to enhance digital learning in tribal schools.

The IT for Masses Programme under the Digital India Programme aims to promote and initiate ICT-related  activities  for  focus  groups  like  women,  Scheduled  Castes  (SC),  Scheduled  Tribes (ST), senior citizens, differently-abled individuals and those from economically weaker sections (EWS). Under this programme, a total 60,170 tribal candidates have benefited. National Institute of  Electronics  and  Information  Technology  (an  Autonomous  Scientific  Society  under  the administrative  control  of  Ministry  of  Electronics  and  Information  Technology)  has  been executing the Scheduled Caste Sub Plan (SCSP) for Scheduled Castes and Tribal Sub-Plan(TSP) for  Scheduled  Tribes,  offering  free  training  to  SC/ST  candidates  through  its  own  centres  in various Skill Development training and formal training courses. Under this programme, a total of 2,31,161 tribal candidates have benefited.

Common  Services  Centres  (CSCs)  have  been  set  up  under  an  initiative  of  the  Ministry  of Electronics  and  Information  Technology.  CSC  e-Governance  Services  India  Limited  is  the implementing  agency.  The  CSC  initiative  aims  to  deliver  e-services  to  rural  citizens  through CSCs and expand the CSC network till the Gram Panchayat level. Over 800 services are being delivered through CSCs, including government services, financial services and services related to  Aadhaar,  various  social  welfare  schemes,  education,  tele-medicine,  travel  bookings,  utility payments. It is  a Pan-India project and it is not specific to any state or region. CSC SPV has apprised  that  as  on  January  2025,  5,97,441  CSCs  are  functional  across  the  country  (rural  + urban),  out  of  which  4,73,357  CSCs  are  functional  at  the  Gram  Panchayat(rural)  level.  In  the state  of  Bihar,  56,556  CSCs  are  functional  across  the  country  (rural  +  urban),  out  of  which 50,383 CSCs are functional at the Gram Panchayat(rural) level.

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## 1. Scheme and Programs

- 1.1. Modified Program for Development of Semiconductors and Display Manufacturing Ecosystem :  To  widen  and  deepen  electronics  manufacturing,  the  Union  Cabinet  on 15.12.2021, approved a comprehensive program with an outlay of INR 76,000 crore for the  development  of  Semiconductors  and  Display  manufacturing  ecosystem.  With  the approval  of  Cabinet,  this  Programme  has  been  recently  modified  on  21.09.2022.  The modified  programme  offers  Fiscal  Support  of  50%  of  Project  Cost  uniformly  for semiconductor fabs across the technology nodes as well as for compound semiconductors, packaging and other semiconductor facilities.

The following fiscal incentives are now available to eligible applicants:

-  Modified Scheme for setting up of Semiconductor Fabs : It provides fiscal support for setting up semiconductor wafer fabrication facilities in the country. Fiscal support of 50% of the Project Cost is available for setting up of silicon-based semiconductor fabs across all technology nodes.
-  Modified  Scheme  for  setting  up  of  Display  Fabs :  It  provides  fiscal  support  for setting up TFT LCD / AMOLED based display fabrication facilities. It provides fiscal support of 50% of Project Cost.
-  Modified Scheme  for setting up of Compound  Semiconductors  /  Silicon Photonics  /Sensors  Fab/  Discrete  Semiconductor  Fabs  and  Semiconductor ATMP / OSAT facilities in India : It provides a fiscal support of 50% of the Capital Expenditure to the eligible applicants for setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fab/ Discrete Semiconductor Fabs and Semiconductor ATMP / OSAT facilities in India.
-  Modernization  of  Semi-Conductor  Laboratory: Government  has  also  approved modernization  of  Semi-Conductor  Laboratory,  Mohali  to  enhance  efficiency  and cycle time
-  Design Linked Incentive Scheme : It offers financial incentives, design infrastructure support  across  various  stages  of  development  and  deployment  of  semiconductor design for ICs, Chipsets, SoCs, Systems & IP Cores and semiconductor linked design. The  scheme  provides  both  'Product  Design  Linked  Incentive'  and  'Deployment Linked Incentive'.
- 1.2. Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing was notified on April 01, 2020 to provide an incentive of 3% 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.
- 1.3. The Production Linked Incentive (PLI) Scheme for IT Hardware , notified on March 3, 2021, offers 4% to 2%/1% incentives on net incremental sales of Laptops, Tablets, Allin-One PCs and Servers for four years. The PLI Scheme 2.0 for IT Hardware, notified on

## Steps taken in the Electronics Sector

- May 29, 2023, provides an average 5% incentive on net incremental sales of Laptops, Tablets, All-in-One PCs, Servers and Ultra Small Form Factor devices for six years.
- 1.4. Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) was notified on April 01, 2020 to 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.
- 1.5. Modified  Electronics  Manufacturing  Clusters  (EMC  2.0)  Scheme was  notified  on April 01, 2020 to 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 provides financial assistance for setting  up  of  both  EMC  projects  and  Common  Facility  Centres  (CFCs)  across  the country.
- 1.6. 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.
- 1.7. Electronics  Manufacturing  Clusters  (EMC)  Scheme : Electronics Manufacturing Clusters Scheme was notified on 22nd October, 2012 to provide support for creation of world-class  infrastructure  along  with  common  facilities  and  amenities  for  attracting investment.

## 2. Other Initiatives

- 2.1. 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).
- 2.2. 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.
- 2.3. Rationalisation of Tariff Structure: Tariff structure has been rationalized to promote domestic  manufacturing  of  electronic  goods,  including,  inter-alia,  Cellular  mobile phones, Televisions, Electronic components, Set Top Boxes for TV, LED products and Medical electronics equipment.
- 2.4. 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.
- 2.5. 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 Trans boundary Movement) Rules, 2016, vide Ministry of Environment, Forest and Climate Change Notification dated 11.06.2018.
- 2.6. 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.
- 2.7. Public Procurement (Preference to Make in India) Order 2017 : Public Procurement Order  has  been  notified  to  prioritize  domestically  manufactured  products  in  public procurement to enhance domestic industry capabilities by progressively increasing local value addition, contributing to the broader goal of self-reliance.
- 2.8. 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.  The  Order  has  been  renotified  as 'Electronics and Information Technology Goods (Requirement of Compulsory Registration) Order, 2021' as per the provisions of BIS Act, 2016.

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Annexure-II

## Details of schemes to promote Information Technology (IT)/ IT enabled Services (ITeS) industry across the country

- i. National  Policy  on  Software  Products  (NPSP)  -  2019  has  been  notified  by  the Government to promote software product ecosystem in the country. In accordance with NPSP, Government had approved the Next Generation Incubation Scheme (NGIS) with a budgetary outlay of Rs. 95.03 crore to extend incubation facilities to tech start-ups in 12 STPI centres located in small cities including one incubation facility in Bihar at Patna.
- ii. STPI  has  been  implementing  the  Software  Technology  Park  (STP)  scheme  and  the Electronics Hardware Technology Park (EHTP) scheme for the promotion of IT/ITES/ESDM  industry.  The  phenomenal  success  of  the  IT/ITES  industry  has  been possible,  inter-alia,  due  to  pivotal  role  played  by  the  STP  Scheme.  STP  Scheme  is  a unique scheme, designed to promote the software industry and growth of Start-Ups and SMEs without any locational constraints.
- iii. GoI  had  also  launched  India  BPO  Promotion  Scheme  (IBPS)  &  North  East  BPO Promotion  Scheme  (NEBPS)  under  Digital  India  Program  with  the  aim  to  create employment  opportunities  and  dispersal  of  IT/ITeS  industry  in  small  cities/towns  by incentivize setting up of BPO/ITeS operations. The duration of IBPS and NEBPS was up to 31.03.2019 and respectively to invite new bids, however disbursements may continue beyond  this  period.  Under  these  schemes  246  units  have  set  up  BPO/ITeS  operations across 27 States/UTs of the country providing direct employment to 53,325 persons.
- iv. GoI has launched a comprehensive initiative to foster innovation and support start-ups
5. through  its  Startup  Accelerator  of  MeitY  for  Product  Innovation,  Development,  and Growth (SAMRIDH) program, addressing the need for an accelerator program that drives social  impact  and  scales  solutions  for  India's  challenges.  The  program  aims  to  provide support to selected accelerators for extending acceleration services to start-ups along with one-to-one matching funding support.
- v. GoI has announced GENESIS (Gen-Next Support for Innovative Startups) to discover, support, grow and make successful startups in small cities with emphasis on collaborative engagement among startups, government and corporates for promoting digitization based on the principals of inclusivity, accessibility, affordability, leading to growth  in employment and economic outputs.

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