Lok Sabha Question No. 97 (STARRED), answered on 2016-03-02
Subject: Manufacture of Electronic Goods
Ministry: COMMUNICATIONS AND INFORMATION TECHNOLOGY
Asked by: ANSHUL VERMA

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

## LOK  SABHA STARRED QUESTION NO.*97

TO BE ANSWERED ON: 02.03.2016

## MANUFACTURE  OF ELECTRONIC GOODS

## *97       SHRI ANSHUL VERMA:

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

- (a) the details of the branded electronic products  manufactured indigenously  in the country, State-wise;
- (b) whether the indigenous  manufacturing of the electronic products is  insufficient to meet the demand, if so, the details thereof; and
- (c) the  steps  taken  by  the  Government  to  promote  domestic  research  and  development  for manufacturing  of electronic products in the country?

## ANSWER

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

- (a) to (c):  A Statement is laid on the Table  of  House.

## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED  QUESTION NO. *97 FOR 02.03.2016 ON MANUFACTURE OF ELECTRONIC GOODS

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- (a): The  total  production  of  electronic  goods  during  2012-13,  2013-14,  and2014-15  (estimated), based on the figures provided by the respective Electronics Industry Associations, is as under:
- (b): The total  import of electronic goods during 2012-13, 2013-14, and 2014-15, as per figures of Directorate General of Commercial Intelligence and Statistics (DGCIS) is as under:

| Year    | Indigenous Production of Electronics (in Rupees Crore)   |
|---------|----------------------------------------------------------|
| 2012-13 | 1,64,172                                                 |
| 2013-14 | 1,80,454                                                 |
| 2014-15 | 1,90,366                                                 |

Source : Annual Report 2014-15 of the Department of Electronics and Information Technology (DeitY), Government of India

| Year    | Import of Electronics (in Rupees Crore)   |
|---------|-------------------------------------------|
| 2012-13 | 1,79,000                                  |
| 2013-14 | 1,95,900                                  |
| 2014-15 | 2,25,600                                  |

The  comparison  of  total  production  with  import  of  electronic  goods  suggests  that  the  indigenous production of electronic goods is not sufficient to meet the domestic demand.

- (c): Steps taken by the Government to promote domestic research and development for manufacturing of electronic products in the country are as under:
- (i) An 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  companies developing  new  technologies  in  the  area  of  electronics,  nano-electronics  and  Information  Technology (IT).  The  EDF will also help attract  venture  funds,  angel  funds  and  seed  funds  towards  Research  and Development (R&D) and innovation in the specified areas. It will help create a battery of Daughter funds and Fund Managers who will be seeking good start-ups (potential winners) and selecting them based on professional  considerations.  Government  has  appointed  CANBANK  Venture  Capital  Funds  Ltd. (CVCFL) as Fund Manager of the EDF.

(ii) To promote Electronics System Design and Manufacturing (ESDM) in the country and develop national capability in ESDM, following three Centres of Excellence in specific areas have been launched:

- (a) National Centre for Flexible Electronics (NCFlexE) at IIT Kanpur
- (b) National  Centre  of  Excellence  in  Technology  for  Internal  Security  (NCETIS)  at  IIT Bombay
- (c) Centre of Excellence for Internet of Things at  NASSCOM Bengaluru

(iii) The Department of Electronics and Information Technology (DeitY) promotes R&D in Industrial electronics,  Micro  Electronics,  Nano  Electronics,  Agri-electronics  and  in  Medical  Electronics  by supporting academic institutions / R&D organisations / Societies etc. DeitY also provides funding under several schemes for promotion of R&D, including Support for International Patents in Electronics & IT (SIP-EIT); Multiplier Grants Scheme (MGS) and Scheme for Technology Incubation and Development of Entrepreneurs (TIDE) in the area of Electronics, ICT and Management.

The  R&D supported by DeitY has resulted  in  the  Transfer  of  Technologies  to  various  companies  for commercialization. Some of the major outcomes of domestic R&D efforts are as under:

- (a) Wireless Traffic Control System
- (b) Red light Violation Detection System
- (c) Medical Linear Accelerator (LINAC) System
- (d) Microwave Hospital Disinfectant System
- (e) Digital Programmable Hearing Aid

(iv) DeitY also supports projects in the thrust areas of Advanced Communication, Convergence and Broadband  Technologies  with  a  focus  on  indigenous  technology  development.  Two  of  the  major technologies that have been recently developed and transferred to industry to enable manufacturing are:

- (a)    Software Defined Radio for Naval Communication (SDR-NC), and
- (b)    TETRA - Terrestrial Trunked Radio technology for usage by Police and Army

(v)  Under a project funded by the DeitY, M/s. ByDesign, Bangalore, was selected and awarded the task for development and implementation of Indian Conditional Access System (iCAS TM ) in association with the  Centre  for  Development  of  Advanced  Computing  (C-DAC)  on  05.11.2014,  with  technical specifications best in class in the world. The Development Stage of iCAS TM was successfully completed on 14.11.2015.  The iCAS TM is  available  to  domestic  Set  Top  Box  (STB)  manufacturers  at  a  price  of USD 0.5 per license for a period of three years as against market price of USD 4-5 per license for other competing products.

(vi) 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  capital  expenditure  will  be  the  total  of  capital  expenditure  on  land  (not exceeding 2% of the capital expenditure), building, plant and machinery and technology including R&D. So far, 179 proposals with investment value of Rs.1,20,294 crores have been received under M-SIPS. Out of  the  total  proposals  received,  70  proposals  with  investment  value  of  Rs.  17,756  crores  have  been approved/ recommended till date.

(vii) Electronics  Manufacturing  Clusters  (EMC)  Scheme  provides  financial  support  for  creation  of world  class  infrastructure  for  setting  up  of  EMCs  across  the  country.  For  Greenfield  EMC,  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. So far, DeitY has accorded final approval to 7 Greenfield EMCs and 1 Common Facility Centre (CFC) in Brownfield EMC and In-principle approval to 17 Greenfield EMCs and 3 CFCs in Brownfield EMCs.

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