Lok Sabha Question No. 3038 (UNSTARRED), answered on 2016-03-16
Subject: Encouragement to Industry
Ministry: COMMUNICATIONS AND INFORMATION TECHNOLOGY
Asked by: RABINDRA KUMAR JENA

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (DEPARTMENT OF ELECTRONICS & INFORMATION TECHNOLOGY)

## LOK SABHA UNSTARRED QUESTION NO. 3038

TO BE ANSWERED ON: 16.03.2016

## ENCOURAGEMENT  TO INDUSTRY

## 3038           SHRI RABINDRA  KUMAR  JENA:

Will the Minister of Communications & Information Technology be pleased to state: -

- (a) whether the Government has taken steps to encourage industry for offering services such as IT-based security systems for protection of buildings and campuses as well as surveillance and response capabilities, computers in schools, initiating e-governance projects and LED lighting;
- (b) if so, the details thereof; and
- (c) if not, the reasons therefor?

## ANSWER

## MINISTER FOR COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a) and (b): Government  has  taken  several steps to encourage  domestic  electronics manufacturing industry for production of  electronic goods, including security  and surveillance systems, computers, telecom equipment and LED lighting, which are enclosed at Annexure.

The Government has regular interactions with industry regarding initiation and implementation of projects/schemes under Digital India programme. The schemes/projects under implementation have undergone extensive stakeholder consultations with Industry/Industry Bodies. The consultations  with  industry  have  been  conducted  for  various  schemes/projects  like  Digital Locker,  Mobile  as  Digital  Identity,  e-Sign,  Geographical  Information  System  as  Decision Support System (DSS), Unified Mobile Platform for e-Services delivery, etc.

- (c):  Does not arise.

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## Annexure

Steps taken by the Government to encourage domestic electronics ( including security and surveillance systems, computers, telecom equipment and LED lighting) manufacturing industry

1. Promotion  of  electronics  hardware  manufacturing  is  one  of  the  pillars  of  Digital  India  Programme  of  the Government.
2. The differential excise duty dispensation made available to mobile handsets/ tablet computers has been extended to the  Routers,  Broadband  modems,  Set-top  boxes  for  gaining  access  to  internet,  Digital  Video  Recorder  (DVR)  / Network Video Recorder (NVR) and CCTV Camera / IP Camera, wherein, these will be charged Excise Duty of 4% (without input tax credit) while Countervailing Duty (CVD) on imports shall be 12.5%. To enable this, parts, components, accessories and sub-parts used for the manufacture of parts, components, accessories have also been exempted from Basic Customs Duty (BCD), Excise Duty/CVD and Special Additional Duty of Customs (SAD).
2. Duty structure has been rationalised for promoting domestic manufacturing of electronic goods.
3. Policy for providing preference to domestically manufactured electronic products in Government procurement is under implementation. 9 electronic products viz., Desktop PCs, Laptop PCs, Tablet PCs, Dot Matrix Printers, Smart Cards,  LED  Products,  Biometric  Access  Control/  Authentication  Devices,  Biometric  Finger  Print  Sensors  and Biometric Iris Sensors and 23 telecommunications products have been notified in furtherance of the policy.
4. Modified Special Incentive Package Scheme (M-SIPS) provides financial incentives to offset disability and attract investments  in  the  electronics  hardware  manufacturing.  The  scheme  provides  subsidy  for  investments  in  capital expenditure - 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs. The scheme is open to receive applications till 26th July, 2020.
5. Electronics Manufacturing Clusters (EMC)  Scheme  provides  financial assistance for creating world-class infrastructure  for  electronics  manufacturing  units.  For  Greenfield  EMC,  the  financial  assistance  of  50%  of  the project cost subject to a ceiling of Rs.50 crore for 100 acres of land and for Brownfield EMC 75% of the cost of infrastructure, subject to a ceiling of Rs. 50 crore is provided as Grant.
6. Approvals for all foreign direct investment up-to 100% in the electronic hardware manufacturing sector are under the automatic route.
7. Electronic Development Fund (EDF) policy has been approved to support Daughter Funds including Early Stage Angel Funds and Venture Funds in the area of Electronics System Design and Manufacturing, Nano-electronics and IT. The supported Daughter Funds will promote innovation, R&D, product development and within the country.
8. A meeting of State IT Ministers and State Government Officials was held to encourage them to actively promote electronics manufacturing. Several States have shown keen interest.
9.    Under the Electronics Hardware Technology Park (EHTP) Scheme, approved units are allowed duty free import of goods  required  by  them  for  carrying  on  export  activities,  CST  reimbursement  and  excise  duty  exemption  on procurement of indigenously available goods, as per the Foreign Trade Policy.
10. Mandatory compliance to safety standards has been notified for identified Electronic Products with the objective to curb import of sub-standard and unsafe electronics goods. As of now, 30 electronic products are under the ambit of this Order.
11. Two Schemes for skill development of 90,000 and 3,28,000 persons, respectively  in the electronics sector has been approved to provide human resource for the industry.
12. The Scheme to enhance the number of PhDs in the Electronic System Design and Manufacturing (ESDM) and IT/IT Enabled Services (ITES) sectors has been approved. 3000 PhDs are proposed to be supported under the Scheme.
13. An Electropreneur park has been approved for providing incubation for development of Electronics System Design and Manufacturing (ESDM) sector which will contribute IP creation and Product Development in the sector.
14. National Centre of Excellence for Technology on Internal Security (NCETIS) is being 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 in Flexible Electronics (NCFlexE) is being set up in IIT Kanpur with the objectives to promote R&D; Manufacturing; Ecosystems; Entrepreneurship; International Partnerships and Human Resources and develop prototypes in collaboration with industry for commercialization.
16. Centre for Excellence on Internet of Things (IoT) is being set up in Bengaluru jointly with NASSCOM.
17. The Department of Electronics and Information Technology (DeitY) provides funding under several schemes for promotion of R&D, including support for International Patents in Electronics & IT (SIP-EIT); Multiplier Grants Scheme  and  Scheme  for  Technology  Incubation  and  Development  of  Entrepreneurs  (TIDE)  in  the  area  of Electronics, ICT and Management.

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