Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) whether the Government is aware that global shortages and other supply constraints have severely hit hard the domestic electronics productions/manufacturing industry;
(b) if so, the details thereof; and
(c) the details of the remedial steps taken by the Government to boost electronics products manufacturing in the country especially in the State of Maharashtra
(a) and (b): Yes, Sir. Government is aware that global shortages and other supply constraints have severely impacted the domestic electronics productions/manufacturing industry. The shortage of semiconductor / microchips in particular has impacted many industries with auto and consumer electronics industries among the most affected sectors. Industry estimates indicate a production loss of a minimum 5-7% on account of this shortage. The shortage first emerged after the COVID-19 pandemic, due to lockdowns, restrictions and disruptions in global supply chains. The supply side problem has transformed into a demand side problem as our economy has started recovering strongly which has increased the consumption of electronic goods across various segments. Some key reasons behind the global chip shortage are supply chain disruptions, geographic concentration of electronic manufacturing, rise in demand for digital and electronic goods, and digital adoption across the world.
Government has conducted several engagements on this topic with OEMs, ODMs, Tier 1 companies as well as distributors to address this problem and pursue this opportunity as companies seeking to diversify the value chain from current geographies.
(c): Government of India’s goal is to make India a significant design and manufacturing hub as part of its AtmaNirbhar Bharat economic policies. In this regard, we are broadening and deepening our electronic manufacturing ecosystem. The steps taken by Government for the expansion of electronics manufacturing in the country are at Annexure-I.
Maharashtra has emerged as one of the important destinations for electronics manufacturing and has seen substantial growth in the electronics System Design and Manufacturing (ESDM) Sector. The State is sharing about 18% of total electronics manufacturing production in the country. This growth is largely aided by the steps taken by the government to boost electronics manufacturing. Under Electronics Manufacturing Clusters (EMC) scheme, two (2) Common Facility Centres (CFCs) are approved in State of Maharashtra and are targeted to serve the requirement of Common Testing Facilities for electronics manufacturers in and around Pune and Aurangabad region in the State. The details of these EMCs/CFCs are enclosed at Annexure-II.
In addition, 80 companies have established their operations in the State and are taking benefits from Modified Special Incentive Package Scheme (M-SIPS), Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and Production Linked Incentive (PLI) Scheme of Government of India. List of such companies approved under MSIPS, SPECS and PLI is enclosed at Annexures-III, IV & V. To boost the electronics manufacturing production and generate employment, the State has amended its Electronics Policy, 2016 to extend the benefits upto 2023 and has linked it with the new SPECS and PLI Schemes of the Govt. of India.
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Annexure-I
Steps taken by Government for the expansion of electronics manufacturing in the country:
1. National Policy on Electronics 2019: The National Policy on Electronics 2019 (NPE 2019) has been notified on 25.02.2019. The vision of NPE 2019 is to position India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally.
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.
3. 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. Under the Scheme, 19 Greenfield EMCs and 3 Common Facility Centres (CFCs) measuring an area of 3,464 acres with total project cost of INR 3,762 crore including Government Grant-in-Aid of INR 1,538 crore have been approved.
4. 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). This fund is expected to foster R&D and innovation in these technology sectors.
5. Phased Manufacturing Programme (PMP) has been notified to promote domestic value addition in mobile phones and their sub-assemblies / parts manufacturing. As a result, India has rapidly started attracting investments into this sector and significant manufacturing capacities have been set up in the country. The manufacturing of mobile phones has been steadily moving from Semi Knocked Down (SKD) to Completely Knocked Down (CKD) level, thereby progressively increasing the domestic value addition.
6. 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.
7. 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.
8. 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 Transboundary Movement) Rules, 2016, vide Ministry of Environment, Forest and Climate Change Notification dated 11.06.2018.
9. Relaxing the ageing restriction: The Department of Revenue vide Notification No.60/2018-Customs dated 11.09.2018 has amended the Notification No.158/95-Customs 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.
10. Public Procurement (Preference to Make in India) Order 2017: To encourage ‘Make in India’ and to promote manufacturing and production of goods and services in India with a view to enhancing income and employment, the Government has issued Public Procurement (Preference to Make in India) Order 2017 vide the Department for Promotion of Industry and Internal Trade (DPIIT) Order dated 15.06.2017 and subsequent revisions vide Orders dated 28.05.2018, 29.05.2019, 04.06.2020 and 16.09.2020. In furtherance of the aforesaid Order, MeitY has notified mechanism for calculating local content for 13 Electronic Products viz., (i) Desktop PCs, (ii) Thin Clients, (iii) Computer Monitors, (iv) Laptop PCs, (v) Tablet PCs, (vi) Dot Matrix Printers, (vii) Contact and Contactless Smart Cards, (viii) LED Products, (ix) Biometric Access Control / Authentication Devices, (x) Biometric Finger Print Sensors, (xi) Biometric Iris Sensors, (xii) Servers, and (xiii) Cellular Mobile Phones, for procurement to be made from local suppliers.
11. 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. 63 Product Categories have been notified under the CRO and the order is applicable on 63 product categories.
12. Establishment of Gallium Nitride (GaN) Ecosystem Enabling Centre and Incubator: The project for “Establishment of Gallium Nitride (GaN) Ecosystem Enabling Centre and Incubator for High Power and High Frequency Electronics” has been approved. The project is being implemented by Society for Innovation and Development (SID), Centre for Nano Science and Engineering (CeNSE), IISc Bengaluru.
Annexure-II
Approved CFCs under EMC for State of Maharashtra
S.No. State Location Area (Acres) Implementing Agency Financial Outlay
(INR crore)
Project Cost Grant-in-aid
1 Maharashtra Shendra Industrial Area, Aurangabad District 1.98 Deogiri Electronics Cluster Private Limited (DECPL) 28.57 20.58
2 Maharashtra Pimpri Industrial Area, Pune 0.61 MCCIA Electronic Cluster Foundation (MECF) 67 50
Annexure-III
Approved Applications under MSIPS for State of Maharashtra
S. No Name of Company Project Location Products Proposed Investment
(Rs crore) Approved Incentives (Rs Crore)
1 Sterlite Technologies Limited
Aurangabad Optical Fiber cable and Optical Fiber 1006.14 234.6
2 LG Electronics India Pvt. Ltd Pune Refrigerator 531.92 62.55
3 Liebherr Appliances India Private Limited Aurangabad Refrigerators 837.31 85.5
4 Haier appliances India (P) Ltd Pune Refrigerator, washing machine, Air conditioner, LED TV 490.28 104.92
5 Jabil Circuits India Pvt Ltd Pune Set Top Boxes, Mi Fi, Home Gateway, STB II, Dongles, PCB 103.64 36.27
6 Jabil Circuits India Pvt Ltd Pune EMS 105.90 28.89
7 LG Electronics India Pvt. Ltd Pune Plasma Display LED TVs 721.46 56.94
8 Siemens Limited Thane Contactors and Contactor Relays 80.03 19.87
9 ShoginiTechnoarts Pvt Ltd
Pune PCBs 174.88 9.35
10 Harman International India Private Limited US Company Pune Infotainment Audio System 134.27 6.79
11 MindaKateloc Electronics Services Private Limited Pune PCBA 65.75 7.48
12 TE Connectivity India Pvt Ltd Pune Connectors, Terminals, Fuse and Relay Boxes, cable aseemblies, headers, component assemblies 155.60 5.54
13 LG Electronics India Pvt. Ltd Pune Fully autometic washing machine 177.60 10.04
14 Aurangabad Electricals Ltd Aurangabad ECU Covers 56.14 5.95
15 Alcon Electronics Pvt. Ltd Nashik Capacitors 17.14 3.82
16 Elcom International(P) Limited Kolhapur Switch, connector, power cords, solar connectors, fuse holder, DIN Connector, LED Holders, Teminals, Universal Adaptors, IEC connectors, indian sockets, knobs & caps, Nema connectors and RFI/EMI filters etc 16.84 4.1
17 NovasysGreenergy Private Limited Nagpur solar photovoltaic modules 82.32 3.73
18 Epitome Components Ltd (Epitome Components Private Limited) Ahmednagar Single Side PCB,Double Side with RF PCB 75.21 3.41
19 Sedemac Mechatronics Private Limited Pune ECU 12.50 3.93
20 Desai Electronics Pvt. Ltd. ( Application -II) Pune Plastic Film Capacitors 55.00 2.46
21 Robonik India Pvt. Ltd Thane Biochemistry Analyser, ELISA, Coagulation, Urine Analyser, Electrolyte Analyser, Hematology Analyser 21.19 4.76
22 Smart Card It Solutions Ltd Pune Smart Card, ID cars, GSM Cards, Banking Cards 30.11 5.33
23 Desai Electronics Pvt. Ltd.( Application- I) Pune Plastic Film Capacitors 16.00 3.85
24 TATA Power SED Andheri, Mumbai Telecom products, Strategic Electronics, Avionics, Industrial Electronics, Opto Electronics, Power supplies for ESDM products 2127.00 90.97
25 Corning Technologies India Private Limited Pune Optical Fibre 1701 197.91
26 Jabil Circuit India Private Limited Ranjangaon Mobile Chargers, Set Top Box, Mobile and Mobile Accessories, Radio Units and PCBA 756.88 100.53
27 Jindal Polyfilms Limited Nasik Bi-axially Oriented Poly-Propylene Capacitor Grade Di-Electric Films 750 52.76
28 Hengtong Optic Electric India Private Limited Pune Optical Fibre and Optical Fibre Cables 624.69 47.15
29 Whirlpool of India Limited Pune single door direct cool refrigerators, double door frost free refrigerator and front load fully automatic washing machine 587.05 39.74
30 Carrier Midea India Private Limited Ahmednagar Variable Refrigerant Flow (Commercial air conditioners), Room Air Conditioner 404.29 75.34
31 Midea India Private Limited Ahmednagar Fully automatic washing machines
Refrigerators 374.26 79.5
32 Amber Enterpises India Pvt Ltd
Pune AIR CONDITIONER indoor/outdoor unit/ Window AC 342.25 10.73
33 Epitome Components Private Limited Ahmednagar, Maharashtra Phase-I: PCB,
Phase-II: Lithium Ion Batteries Cells,Lithium Ion Batteries
Pack 300 20.71
34 Emitec Emission Control Technologies India Private Limited (New Name: Vitesco Technologies India Private Limited) Plot -B2, Talegaon Industrial Area, Phase-II, Pune Maharashtra- 410506 Nitrogen Oxide (NOx) Sensor, High Temperature Sensors (HTS), M4A- Electronic Control Unit (ECU), Door Handling Sensor (DHS), Knock Sensor for automobile sector 285.1 16.77
35 Belden India Private Limited Plot No. D - 228/1, Chakan Industrial Area, Phase - II Village Bhamboli, Taluka Khed, Pune, Maharashtra – 410507 Industrial Switches, Patch Cords and Cables 260 5.08
36 Rishabh Instruments Pvt Ltd Location 1: F-31, Satpur, MIDC, Nashik, Maharashtra-422007
Location 2: C-6, Satpur, NICE, Nashik, Maharashtra- 422007 DG Set Controller, Low Voltage CT/PT, Power Factor Controller,
Programmable AC/DC power supply, Solar Converter and Temperature
Controller 250.76 12.69
37 Endress and Hauser Flowtec India Private Limited M-171 to 176 MIDC Waluj Aurangabad Aurangabad
Maharashtra 431136 Flow Meter 245.25 37.01
38 Bel Optronic Devices Limited Pune Image Intensifier Tubes (XD-4 and XR-5) 210.31 21.32
39 Delphi Automotive Systems Pvt Ltd Pune Body control Module, Engine Control Module, Immbiliser, rear view camera, radio, cluster, combi switch, antenna, driver information system, wiring harness 201.35 12.08
40 KabraExtrusiontechnik Limited Pune Lithium-ion Battery
with Battery Management System (BMS) 198.89 15.93
41 Varroc Engineering Limited Pune PCBA 197 21.84
42 Amphenol Interconnect India Private Limited Pune Connectors and part of connectors 194.82 21.29
43 Minda Industries Limited Pune Sensors 150 34.45
44 TE Connectivity India Private Limited Pune and Satara Terminals
Fuse and Relay Boxes
Cable Assemblies
Headers
Component Assemblies
Sensors
ABS Modules
USB Cable Assembly
Connectors 150 10.99
45 MSS India Private Limited Nashik Light Emitting Diodes (Assembly) based Products, Capacitors, Connectors & Parts and Small Precision Plastic & Metal Parts 147.88 19.96
46 Minda Stoneridge Instruments Limited Pune Instrument Cluster and Sensor 140.86 20.89
47 Topband India Private Limited Pune EMS for PCBA 134.44 21.42
48 Electrolab India Private Limited Navi Mumbai Testing Apparatus for Medical Applications 117 3.84
49 Amphenol Interconnect India Pvt. Ltd Pune Connectors and parts of connector 99.69 8.82
50 Selec Controls Pvt Ltd Navi Mumbai
and Thane Multifunctional meter
Energy meter
Digital voltmeter
Digital ammeter
VAF meters
Power factor meters
Frequency meters
Human Machine Interface (HMI)
Programmable Logic Controller (PLC)
Temperature controllers
Process indicators
Counters
Protection & time relays
Analog timers 91.03 4.38
51 Frontline Electronics Limited Pune Solenoid Assemblies,Electronic assemblies for agriculture equipments like pumps,PCBA 90.37 10.5
52 GKN Fokker Elmo India Private Limited Pune Wiring Harness (for aerospace market) 83.6 3.38
53 Radix Electrosystems Pvt Ltd Thane Flow transmitters controllers and other products 2,099
Energy Meters Panel Meters Other Electric meters 28,600
Protection and Monitoring Relays 12,375
Gas Detection Products 1,238
Communication Converters and Gateways 3,403
Building Management System Products 35,282
Temperature and Process Controllers and Indicators 74,442
Isolators Transmitters IO modules 58,772
SCR Power Controllers 1,581
Level transmitters controllers and other products 16,706
GPRS and GPS wireless products 2,656
Zigbee Wireless Communication Products 1,998 82.41 4.67
54 TDK India Private Limited (EPCOS India Private Limited) Nashik AC Capacitors 74.30 4.56
55 TDK India Private Limited (EPCOS India Private Limited) Nashik DC Capacitors 65.15 9.58
56 OEN India Limited Pune Micro relays, Mini relays, Solenoids, Sensors, Power relays 62.13 9.492758
57 Endress And Hauser India Automation Instrumentation Private Limited Aurangabad Level & Pressure measuring equipment 43.91 9.09
58 Sedemac Mechatronics Private Limited Pune Integrated Starter Generator (ISG) ECU 41.74 3.36
59 Inteva Products India Automotive Private Limited Pune Brushed DC Motor 41.00 5.38
60 BG LI IN Electricals Limited Aurangabad Electromechanical components including Buzzer, Switches, E-Thermostat, LED lamps with Harness, Defrost Heater, AC Terminal Box, LED Bulb Socket and Water Inlet Valve/Solenoid Valve for white goods industry 40.58 4.69
61 Motion Drivetronics Thane Stepper Motor 37.82 1.44
62 Minda Industries Ltd Pune 2W BCM; 2W Navigation ; 4W MF ECU; AIS 140; BCM; Fleet Management; ITS; UBI ; Wireless Charger 30 5.38
63 Star Engineers (I) Pvt. Ltd. Pune Regulator rectifier, controlling device for ignition, Flasher, Sensor, controller 29.98 8.53
64 FineLine Circuit Limited Andheri Mumbai SEZ PCB (Bare complex) 27.17 1
65 Nitiraj Engineers Limited Dhule Electronic Weighing Scale, Electronic Fare Meter and Electronic Currency Counting machine 23.17 1.32
66 Renu Electronics Pvt. Ltd. Pune Automation Products - Human Machine Interfact (HMI), Programmable logic controller (PLCs) 19.52 3.08
67 Evolute Solutions Pvt Ltd Thane AdaptorsChargers
Battery Operated Power Supplies (BOPS)
Lithium Ion Battery Packs
Bluetooth Printer
Hand Held Terminal
Home Lighting Systems
Street Lighting Systems
LED Drivers
Portable ECG Machines 16.19 2.34
68 Behr HellaThermocontrol India Private Limited Pune Printed Circuit Board Assembly 12.9 2.53
69 Sedemac Mechatronics Private Limited Pune Printed Circuit Board Assembly (PCBA) for Voltage Regulator and Rectifier (VRR), Transistor Control Igniter (TCI), Flasher, ISG (Integrated Starter Generator) 11.51 2.44
Annexure-IV
Approved Applications under SPECS for State of Maharashtra
S. No Name of Company Project Location Product /Vertical Proposed Investment
(INR crore) Approved Incentives
(INR crore)
1. Epitome Components Pvt. Ltd. Maharashtra Printed Circuit Board (PCB) 13.32 3.14
2. TE Connectivity India Private Limited Maharashtra A.4 - Connectors
146.31 31.81
3. Tara Relays Private Limited Maharashtra A.4 - Relays
9.49 1.93
Annexure-V
PLI Scheme for Large Scale Electronics Manufacturing for Specified Electronic Components
S. No. Name of the Company Product Segment Project Location
1 TDK India Private Limited Electronic Components Nasik
2 Vitesco Technologies India Private Limited Electronic Components Pune
3 Epitome Components Private Limited Electronic Components Ahmednagar
4 Vishay Components India Private Limited Electronic Components Pune
5 ShoginiTechnoarts Private Limited Electronic Components Pune
6 Alcon Electronics Private Limited Electronic Components Nasik
7 Desai Electronics Private Limited Electronic Components Pune
PLI Scheme for IT Hardware
S. No. Name of the Company Product Segment Project Location
1 Panache Digilife AIOs, Laptops Thane
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