Lok Sabha Question No. 2856 (UNSTARRED), answered on 2015-12-16
Subject: Cyber Security Command
Ministry: COMMUNICATIONS AND INFORMATION TECHNOLOGY
Asked by: MUTHAMSETTI SRINIVASA RAO (AVNTHI)

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

## LOK SABHA UNSTARRED QUESTION NO. 2856

TO BE ANSWERED ON: 16.12.2015

## CYBER SECURITY COMMAND

## 2856 SHRI MUTHAMSETTI SRINIVASA RAO (AVANTHI):

Will the Minister of Communications and Information Technology be pleased to State:

- (a) whether the Government is planning a cyber security command to facilitate manufacture of electronic products in the country;
- (b) if so, the details thereof;
- (c) whether the Government is planning a policy of manufacturing all electronics  in the country; and
- (d) if so, the details thereof and the time by which the said policy is likely to be implemented?

## ANSWER

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

(a)  and  (b):  There  is  no  proposal  with  the  Government  to  set  up  a  Cyber  Security  Command. However, realizing  the  need  for  real  time  situational  awareness  and  rapid  response  to  cyber  Security  incidents, Government has initiated actions to set up a National Cyber Coordination Centre (NCCC) to generate near real time macroscopic views of the cyber security breaches and cyber security threats in the country. The centre  will  scan  the  cyberspace  in  the  country  to  generate  real  time  situational  awareness  and  proactive detection of cyber threats at national level. The centre will remain in touch with various organizations and entities in the country, on an online basis and will work with them to counter and mitigate cyber attaches and cyber incidents on a near real time basis.

- (c) and (d): Electronics manufacturing is an important part of 'Make in India' effort of Government of India and  is  also  one  of  the  pillars  of  Digital  India  programme.  The  Government  earlier  notified  the  National Policy on Electronics in November 2012 with the vision to create a globally competitive electronics design and  manufacturing  industry  to  meet  the  country's  needs  and  serve  the  international  market.  The  salient features of NPE 2012 enunciating the objectives and strategies are enclosed at Annexure-1. The details of the  steps  being  taken  to  promote  electronics  hardware  manufacturing  in  the  country  are  enclosed  at Annexure-2.

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## Subject: Salient features of National Policy of Electronics 2012 - Objectives and Strategies

The key objectives of the Policy are:

- (i)  To  create  an  eco-system  for  a  globally  competitive  Electronics  System  Design  and  Manufacturing  (ESDM)  sector  in  the country  to  achieve  a  turnover  of  about  USD  400  billion  by  2020  involving  investment  of  about  USD  100  billion  and employment to around 28 million people at various levels.
- (ii) To build on the emerging chip design and embedded software industry to achieve global leadership in Very Large Scale Integration (VLSI), chip design and other frontier technical areas and to achieve a turnover of USD 55 billion by 2020.
- (iii) To build a strong supply chain of raw materials, parts and electronic components to raise the indigenous availability of these inputs from the present 20-25 per cent to over 60 per cent by 2020.
- (iv) To increase the export in ESDM sector from USD 5.5 billion to USD 80 billion by 2020.
- (v) To significantly enhance availability of skilled manpower in the ESDM sector. Special focus for augmenting postgraduate education and to produce about 2500 PhDs annually by 2020.
- (vi) To create an institutional mechanism for developing and mandating standards and certification for electronic products and services to strengthen quality assessment infrastructure nationwide.
- (vii) To develop an appropriate security ecosystem in ESDM.
- (viii) To create long-term partnerships between ESDM and strategic and core infrastructure sectors - Defence, Atomic Energy, Space, Railways, Power, Telecommunications, etc.
- (ix) To become a global leader in creating Intellectual Property (IP) in the ESDM sector by increasing fund flow for R&D, seed capital and venture capital for start-ups in the ESDM and nano-electronics sectors.
- (x)  To  develop  core  competencies in  strategic  and core infrastructure  sectors like  telecommunications,  automotive,  avionics, industrial, medical, solar, Information and Broadcasting, Railways, etc through use of ESDM  in these sectors. (xi) To use technology to develop electronic products catering to domestic needs, including rural needs and conditions, as well as international needs at affordable price points.
- (xii)  To  become  a  global  leader  in  the  Electronic  Manufacturing  Services  (EMS)  segment  by  promoting  progressive  higher value addition in manufacturing and product development.
- (xiii) To expedite adoption of best practices in e-waste management.
- (xiv)  To  source,  stockpile  and  promote  indigenous  exploration  and  mining  of  rare  earth  metals  required  for  manufacture  of electronic components.

To achieve these objectives, the policy proposes the following strategies:

- (i)  Creating  eco-system  for  globally  competitive  ESDM  sector:  The  strategies  include  provision  of  fiscal  incentives  for investment, setting up of electronics manufacturing clusters, preferential market access to domestically manufactured electronic products,  setting  up  of  semiconductor  wafer  fabrication  facilities,  industry  friendly  and  stable  tax  regime.  Based  on  Cabinet approval, a high level Empowered Committee has been constituted to identify and shortlist technology and investors for setting up two semiconductor wafer manufacturing fabrication facilities. Based on another Cabinet approval, a policy for providing preference to domestically manufactured electronic products has been notified. The Cabinet has also approved Modified Special Incentive Package for the ESDM Sector and scheme for setting up of Electronics Manufacturing Clusters (EMCs).
- (ii)  Promotion  of  Exports:  The  strategies  include  aggressive  marketing  of  India  as  an  investment  destination  and  providing incentives for export.

## Annexure-1

- (iii)  Human  Resource  Development:  The  strategies  include  involvement  of  private  sector,  universities  and  institutions  of learning  for  scaling  up  of  requisite  capacities  at  all  levels  for  the  projected  manpower  demand.  A  specialized  Institute  for semiconductor chip design is also proposed.
- (iv)  Developing and mandating standards to curb inflow of sub-standard and unsafe electronic products by mandating technical and safety standards which conform to international standards
- (v) Cyber security: To create a complete secure cyber eco-system in the country, through suitable design and development of indigenous  appropriate  products  through  frontier  technology/product  oriented  research,  testing  and  validation  of  security  of products.
- (vi) Strategic electronics: The strategies include creating long-term partnerships between domestic ESDM industry and strategic sectors for sourcing products domestically and providing Defense Offset obligations for electronic procurements through ESDM products.
- (vii) Creating ecosystem for vibrant innovation and R&D in the ESDM sector including nano-electronics. The strategy includes creation of an Electronic Development Fund.
- (viii) Electronics in other sectors: The strategy includes supporting and developing expertise in the electronics in the following sectors of economy: automotive, avionics, Light Emitting Diodes (LEDs), Industrial, medical, solar photovoltaics, Information and Broadcasting, Telecommunications, Railways, Intelligent Transport Systems, and Games and Toys.
- (ix) Handling e-waste: The strategy includes various initiatives to facilitate environment friendly e- e-waste handling policies.
- (x)  Governance Structure:  This envisages setting up a National Electronics Mission; Renaming of Department of Information Technology  as  Department  of  Electronics  and  Information  Technology  (DeitY)  and  providing  encouragement  to  States  to promote the development of ESDM Sector.

## Annexure-2

## Steps taken/being taken by the Government to promote electronics hardware manufacturing in the country

1. Promotion of electronics hardware manufacturing is one of the pillars of Digital India campaign of the Government.
2. Modified  Special  Incentive  Package  Scheme  (M-SIPS)  provides  financial  incentives  to  offset  disability  and  attract investments in the Electronics Systems Design and Manufacturing (ESDM) sector. The scheme was notified in July 2012. The scheme provides subsidy for investments in capital expenditure - 20% for investments in SEZs and 25% in non-SEZs. The scheme is available for both new projects and expansion projects. For high technology and high capital investment units like Fabs, production subsidy @10% is also provided. The incentives are available for investments made in a project within a period of 10 years. The scheme is open to receive applications till 26.07.2020.
3. Electronics Manufacturing Clusters (EMC) Scheme provides financial assistance for creating world-class infrastructure for  electronics  manufacturing  units.  The  assistance  for  the  projects  for setting  up  of  Greenfield  Electronics Manufacturing Clusters is 50% of the project cost subject to a ceiling of Rs. 50 Crore for 100 acres of land. For larger areas, pro-rata ceiling applies. For lower extent, the extent of support would be decided by the Steering Committee for Clusters (SCC) subject to the ceiling of Rs. 50 Crore. For setting up of Brownfield Electronics Manufacturing Cluster, 75% of the cost of infrastructure, subject to a ceiling of Rs.50 Crore is provided.
4. Policy for providing preference to domestically manufactured electronic products in Government procurement is under implementation.
5. 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.
6. A meeting of State IT Ministers and State Government Officials was held on 26.08.2014 to encourage them to actively promote electronics manufacturing. Several States have shown keen interest.
7. Approvals for all foreign direct investment up-to 100% in the electronic hardware manufacturing sector are under the automatic route.
8. 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.
9. Tariff Structure has been rationalized to promote indigenous manufacturing of electronic goods.
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. Government has approved setting up of two semiconductor wafer fabrication (FAB) manufacturing facilities in India.
13. 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.
14. Steps have been taken for the development and implementation of the Indian Conditional Access System (CAS) to promote indigenous manufacturing of Set Top Boxes  (STBs), keeping in view the huge indigenous requirement on account of roadmap for digitalization of the broadcasting sector.
15. An  Electropreneur  park  has  been  approved  for  providing  incubation  for  development  of  ESDM  sector  which  will contribute IP creation and Product Development in the sector.
16. National Centre of Excellence in Large Area Flexible Electronics (NCFLEX) 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.
17. 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.
18. Centre for Excellence on Internet of Things (IoT) is being set up in Bengaluru jointly with NASSCOM.
19. An Incubation center with focus on medical electronics is being set up at Indian Institute of Technology - Patna.
20. An Incubation center with focus on consumer  electronics is being set up at IIITKM-Kochi
21. 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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