e-newsletter deity oct 2013

GOVERNMENT OF INDIA

Department of Electronics and Information Technology (DeitY)

Ministry of Communications & Information Technology

ELECTRONICS e-NEWSLETTER

…. For Electronics System Design & Manufacturing (ESDM) Sector

Year 3 | Vol. 24: October 2013

Electronics e-Newsletter, Room No. 2280, Department of Electronics and Information Technology Ministry of Communications & Information Technology, Electronics Niketan, 6, CGO Complex, New Delhi 110003

• Semiconductor Wafer Fabs get in-principle approval • Skill development of 90,000 persons

• 12 Medical Equipments to get standards soon • FDI in excess of 26% allowed in Defence Pdn.

From Chief Editor’s Desk

Dear Readers,

A very happy Deepawali for all our readers! Wish all a happy and prosperous year ahead.

The month of October saw two major steps being taken by the Government in its push to promote the Electronics

System Design and Manufacturing. The Department of Electronics and IT (DeitY) issued in-principle approval to the two

semiconductor wafer fab projects. Moreover, it also floated an Expression of Interest for any other company which may be

interested in setting up of a similar fab with a similar package of incentives. This is indeed great as it provides an opportunity

for any other company or consortia to also seek benefit as announced by the Government.

The DeitY also approved a Rs 113.7 Crore scheme for skill development in the area of electronics. The scheme aims

to provide assistance to 90,000 students and youth in six states and works through training partners. The scheme

symbolizes the need for greater role for the Sector Skills Councils, both Telecom and Electronics, in training people in skills

needed by the industry. It also encourages private training institutions to come forward in close cooperation with the Sector

Skills Councils and National Institute of Electronics and IT (NIELIT) to provide training. Our human resource is our greatest

USP in developing this sector and the approval of the scheme is a step in that direction.

Another new initiative taken up by DeitY has been the decision to create an online platform on its website where companies

which are interested in offering technology can post their details. Similarly, companies looking for joint ventures etc can also be

posted on this platform. We expect to evolve the platform based on the user feedback and requirements as we go along.

Six Electronic Manufacturing Clusters have been given in-principle approval. The promoters need to come back with

their DPRs at the earliest so that the final approvals can be issued and the process of setting up these new centres of

electronic manufacturing takes shape. It is also essential that the State Governments take ownership of these EMCs in a big

way. A big contribution of the State Government could be providing clearances like electricity, water, building permission,

sewerage through a single point of contact for all units within the EMCs. This single decision could make a big difference in

getting investments into the State.

There seems to be slowdown in the MSIPS applications. We look forward to greater interest in the coming weeks and

months.

Dr. Ajay Kumar

For feedback and subscription, please contact: Mr. Akhilesh Saurikhia, Editor (Electronics e-Newsletter) & Consultant (Communication & Brand Building), Electronics System Design & Manufacturing (PMU), Department of Electronics and Information Technology, Ministry of Communications & Information

Technology, Electronics Niketan, 6 CGO Complex, New Delhi 110003, P: +91 1124301281, F: +91-1124364185, M: +91 9899543533, E: [email protected]

ELECTRONICS e-NEWSLETTER …. For Electronics System Design & Manufacturing (ESDM)

• Semiconductor Wafer Fabs get in-principle approval

|

Semiconductor Wafer Fabs get in-principle approval

The Cabinet on September 12, 2013 gave in-principle approval for setting up of two Semiconductor Wafer

Fabrication (FAB) Manufacturing Facilities in the country along with the incentives proposed for the two FABs. Following this,

Government has issued letters of “in principle” approval to the two bidders.

The Cabinet also advised that all other semiconductor wafer fabrication manufacturers may also be appropriately

and fully apprised of the quantum of subsidy/other benefits/support being offered for establishing FAB facilities in India.

Such manufacturers may be asked to indicate their interest/ send their responses on specified parameters to the

Department of Electronics and Information Technology within a period of four weeks and the matter along with the analysis

of the responses received is to be brought for consideration of the Cabinet.

Accordingly, Government of India has invited companies from all over the globe to Setup Fabs in India. The technical

requirements, the structure of incentives, the requirement of equity structure and other terms are indicated in the format

for Expression of Interest (EoI) issued on Oct 9, 2013 and available on the website of the Department of Electronics and

Information Technology (www.deity.gov.in). Entities fulfilling the requirements may respond in the prescribed format, within

a period of four weeks, from the date of issue.

Companies already operating/ running a semiconductor wafer fabrication/ manufacturing unit either as an owner of

the technology or in case it is manufacturing under license, companies may apply either on their own or as a consortium.

Template for submitting an expression of Interest is given in the EoI document. Incentives or Support to be made available by

Govt. of India are as under:

i. The incentives under Modified Special Incentive Package Scheme (M-SIPS) Policy notified by the Government of India

on 27th July 2012 may be provided to the extent of 25% of the capital expenditure of the project.

ii. A 25% subsidy on growth capital expenditure as admissible under M-SIPS Policy may be provided.

iii. Countervailing Duty (CVD) on purchase of capital goods may be reimbursed as admissible under M-SIPS Policy.

iv. Excise duty paid on the products of the Fab may be reimbursed under the existing M-SIPS Policy, for a period of 10 years.

v. The duties and levies in the form of Basic Customs Duty (BCD), as applicable may be exempted not only for all the

items covered under ITA-1 (of WTO) but also for all other capital goods required for the project including items of civil

(except basic materials like cement and steel), electrical and including growth capital as also consumables and raw

material required for the production from Fab.

vi. 200% deduction may be allowed for the expenditure on R&D as admissible under Section 35(2AB) of the Income-Tax Act.

vii. Expenditure to be incurred for the training of the project personnel may be reimbursed in terms of National Skills

Development Corporation (NSDC) Scheme.

viii. Investment linked deduction under Section 35AD of the Income-tax Act may be considered.

ix. Disbursement of MSIPS reimbursement may be made pari passu on a quarterly basis as against the annual basis as

envisaged in the M-SIPS Policy.

x. Viability Gap Funding (VGF) may be provided in the form of an interest-free loan with following terms:-

a. On commencement of commercial operations part of the VGF would be converted into 11% equity at face value.

The balance of the VGF shall have a moratorium of 10 years from commissioning of respective phases or the year

of break even, whichever is earlier, and repayable in 5 equal annual installments thereafter.

b. VGF may be provided up to ceiling amount of 20% of the CAPEX, including the Growth CAPEX of the project, or

INR 5,200 Crores (INR 52 Billion) (in nominal value), whichever is less. The exact quantum of VGF will be decided

by the GOI after the appraisal of the DPR submitted by the applicant consortium, duly taking into account the

benefits available under Section 35AD of the Income Tax Act (as per sub-para (viii) above).

c. VGF which shall be provided as an interest free loan and shall be disbursed, on a pari passu basis with CAPEX by the SPV.

d. VGF shall be used for replacing of project debt and shall not be used for reducing the promoters’ equity.

….. contd. on page 3.

• Skill development of 90,000 persons • Kinfra’s Applications for setting up Greenfield EMC

….. contd. from page 2

Further, in consideration of the support provided by the Government, the promoters shall offer a golden share to

the Government of India (GOI) or to the CPSU(s) to be nominated by the Government of India. Government of India shall

have the right to nominate one Director on the Board of the SPV. The nominee Director of the GOI shall have the power to

block any special resolution of the Board, in the public interest but this shall not apply to normal commercial decisions for

running the fab. An appropriate Shareholders Agreement shall be put in place to give effect to the foregoing requirements.

If applicant is applying as a consortium, the equity participation of the principal technology partner should be at least

10% in the SPV. The capital structure of the SPV shall not be changed without the approval of the Government of India.

Expression of Interest document released on Oct 09, 2013 is available on www.deity.gov.in. For more details, please

contact, Shri S.K. Marwaha, Scientist ‘F’, DeitY (email: [email protected]).

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ELECTRONICS

e-NEWSLETTER …. For Electronics System Design & Manufacturing (ESDM)


Rs 113.7 Crores scheme for Skill development of 90,000 persons in Electronics sector

The Department of Electronics and IT (DeitY) has approved a scheme to support skill development in electronics and

related areas. The scheme will be implemented in six states/UTs. These states and UTs will now be identified by the DeitY.

Under the scheme, 75% of the course fee is provided as assistance. Various vocational courses ranging from 200

hours to 400 hours will be eligible for assistance. In addition, full registration and certification fee would be reimbursed.

Assistance is also provided for the implementing agency.

The scope of the scheme is not limited by pre-decided courses. The courses supported will be based on industry

requirement. The students may undergo training either full-time or part-time. Students having passed IX/ X standards

onwards, ITI and Polytechnic programmes, Under Graduate (Non-Engineering) as well as Unemployed youth like School

dropouts from 8th Pass onwards, ITI Certificate Holders, Diploma holders, Graduates(non-engineering), Registrants in

Employment Exchanges and Unemployed resources in the Non-formal Sector, etc., will be covered under this scheme.

The training shall be provided by either NIELIT or NIELIT accredited centres or other training partners recognized by

the Electronic Sector Skills Council and the Telecom Sector Skills Council. The courses would be those accredited by NIELIT or

the aforesaid two Sector Skills Councils.

The scheme will be implemented in a decentralized manner. Each State/UT shall identify an implementing agency to

interact with training partners within their States to implement the scheme.

An empowered Committee headed by the Secretary, DeitY has been constituted for implementing the scheme. The

Empowered committee will include representatives of Planning Commission, DG, NSDA, CEOs of NSDC, ESSC, TSSC.

For more information, please contact Shri A.K. Arora, Director, Deity (Email: [email protected]) or Shri Sanjay

Vyas, Joint Director, DeitY (Email: [email protected]).

Kinfra’s Applications for setting up Greenfield EMC at Kakhanad

Further to applications for setting-up Greenfield and Brownfield Electronic Manufacturing Clusters reported in

previous editions of the Electronics e-Newsletter, an application from Kerala Industrial Infrastructure Development

Corporation (KINFRA) has been received for developing an Electronics Manufacturing Cluster at Kakhanad in an area of 75

acres at an estimated project cost of Rs. 250 Crores.

Details regarding approved EMCs the contact details of concerned persons regarding EMCs are also available on

website www.deity.gov.in/esdm. For more information, please contact Nodal Officer, EMC Scheme. Shri Rajneesh Agrawal,

Director DeitY (Email: [email protected]) or Shri Sanjay Koul, AD, DeitY (Email: [email protected]).

• 12 Medical Equipments to get Standards • Status of Workload of Labs under CRS

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12 Medical Equipments to get Standards soon

A meeting was held between Shri Kapil Sibal, Hon’ble Minister for Communications and IT and for Law and Justice

and Prof. K.V. Thomas, Hon’ble MoS for Consumer Affairs, Food and Public Distribution on Sept 19, 2013 to review the

progress regarding finalization of standards in respect of 12 medical equipments. It was arrived at that the target date/

timeline committed by Bureau of Indian Standards for finalizing the standards in respect of 12 equipments will be strictly

adhered to. Medical Equipments for which standards are being finalized are:

• Capsule endoscope • Pulse Oximeter

• Behind the ear digital programmable Hearing Aid • Electronic Stethoscope

• Neuro Stimulator • Biochemistry Analyser

• Sacral & Gastric neuromodulation system • ECG Machine

• Permanent Pacemaker • Lungs ventilator

• Diabetic care devices • Mammography for breast cancer

The matter regarding progress of grant of registration under the self-declaration scheme for electronic items was

also discussed. It was decided that all the incomplete applications for grant of registration will be taken up on priority. If

necessary, a special cell will be created to dispose this by inviting applications and sort out the matters in one go.

Hon’ble MCIT expressed that BIS should grant registration on fast track basis and the supply chain should not

stop. Hon’ble MCIT asked BIS to reconsider the matter regarding BIS requirement concerning the font size for labelling

on the registered goods.

Status of Workload of Labs under CRS available on deity.gov.in

A status report of workload of labs under Compulsory Registration Scheme (CRS) is available on DeitY’s website,

www.deity.gov.in/esdm, which includes data consolidated from all BIS recognised labs under CRS. It is titled, ‘Weekly Status of

Workload of Labs under CRS‘. According to the status as reported by the laboratories by Oct 18, 2013, the workload is as follows.

Name of Lab Monthly

Capacity (Jobs)

Existing

Load (Jobs)

Reports

released so far

Electronic Regional Test Laboratory (North) 35 34 174

Electronic Regional Test Laboratory (East) 35 11 8

Electronics Regional Test Laboratory (West) 35 79 166

ETDC (Bangalore) 35 26 120

UL India Pvt. Ltd. Bangalore 200 250 592

TUV Rheinland (India) Pvt. Ltd. Bangalore 50 27 667

Intertek India Pvt. Ltd. New Delhi 20 137 107

Conformity Testing Labs Pvt. Ltd. New Delhi 50 139 185

Bharat Test House Pvt. Ltd. Sonepat 200 138 78

UL India Pvt. Ltd. Manesar DNR DNR DNR

HI Physix Laboratory India Pvt. Ltd., Ranjangaon ( Pune) 100 14 0

(NDR: No data received)

Disclaimer: The data presented is based on the inputs volunteered by the respective labs. The data is dynamic in nature and

no claim shall be entertained in any manner what -so-ever about any fall out on account of inaccuracies in this data.

• Draft Policy on Mega ESDM Projects

Disclaimer: For full details on any particular issue, readers may refer to official published documents and policies on the subject. Though every care has been taken to ensure correctness of content, DeitY or its employees are not directly/ indirectly responsible for any inaccuracy in facts, figures or their interpretation.

Discrepancy if any may be brought to the notice of Editor. For Copyright, Hyperlinking and Privacy Policy, please refer to DeitY’s website, www. deity.gov.in

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Draft Policy on Mega Electronics System Design and Manufacturing (ESDM) Projects

National Policy on Electronics (NPE), 2012 lays down an ambitious vision of enhancing the current level of

manufacture in the ESDM sector, from USD 70 Billion to USD 400 Billion, to meet the domestic demand for electronic

products. To achieve this objective of attracting large electronics manufacturing companies to invest in India, the DeitY is has

floated a ‘Mega Projects Policy for Electronics’. The policy is aimed to attract large investments in the sector.

According to the draft, a Mega Project is defined as a proposal for establishing one or more large clusters of facilities

in the ESDM sector for undertaking any or all of the activities of ESDM, at one or more locations in India, including design,

development, manufacturing, packaging, marking and testing, for domestic sale or for exports. The size of capital

investment committed should be over USD 1 Billion, spread over the 5 years (i.e. FY 2013-14 to 2117-18), supported by a

clear roadmap for the proposed lines of activities/ products and the corresponding streams of investment. For this purpose,

the 'eligible investment' shall include:

o Investments in establishing the India manufacturing supply-chain

o Made by the manufacturing partners and EMS partners in establishing manufacturing facilities in India

o In R&D facilities and

o In development of supplier and component manufacturing eco- system for ESDM

A credible marketing plan need to accompany the proposal to support a proposed annual turnover of USD 4 Billion

to be reached by 31-3-2020, with an intermediate milestone of USD 2 Billion to be reached by 31-3- 2017. The manufacture

and marketing plan for the Mega Project should also specify the manner in which the same would be aligned to meet the

strategic objectives of the NPE, 2012. A commitment is made by the promoters to generate employment in line with the

industry norms applicable to the proposed verticals. The promoters of the Mega Project shall also endeavour to achieve the

following objectives while implementing the project:

i. Leverage their global OEM technology, standards, and their experience in building an ESDM eco-system or sub-

system for supporting the initiatives of GOI for promotion of manufacturing activities in India.

ii. Work towards developing India as a strategic node and a global sourcing hub in their manufacturing network,

including meeting global demand through exports out of India, adopting the "Manufacture for the Globe" approach.

iii. Undertake/ enhance their research and development activities in India, with a special focus on the products manufactured

through the Mega Project and on products to be specially designed for the markets in India and the region.

iv. Contribute towards development of an eco-system supportive of high-end manufacturing on a sustainable basis,

including the development of back-end supply chain and skill base for the ESDM sector.

The following additional incentives are proposed for eligible Mega Projects:

i. Applying PMA across a portfolio of products: In respect of domestic manufacturers, who establish a Mega Project,

producing multiple (more than one) products in India, the value addition will be calculated and applied across the

entire portfolio of products produced in India. The following conditions apply:

a. Only the products that have contributed at least 15 of the total sales across the ESDM portfolio (in India) during

the previous financial year would be eligible to be considered for applicability of liberalized value addition norms

under this provision.

b. The value addition norm may be calculated for the entire portfolio of products produced in India, with weightages for

each product in proportion to the production achieved for each product during the previous FY, in value terms.

ii. Deemed Domestic Manufacture (DDM): In respect of domestic manufacturers, who establish a Mega Project one or

more of their products shall be deemed to have been manufactured domestically, even when produced abroad. The

following conditions apply:

a. The domestic manufacturer, establishing a Mega Project, shall be given a credit of DDM, computed as a

percentage of the value of products manufactured in India, that satisfy the prescribed value addition norms.

…. Contd. on page 6

• Draft Policy on Mega ESDM Projects ……… • IITB’s programmes on ‘Semiconductor Technology

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…. Contd. from page 5

b. Such manufacturer will be allowed to import products of a value not exceeding such a DDM credit limit and such

imported products shall be deemed to have been manufactured in India for the purpose of PMA.

c. The percentage of the value of products manufactured in India, which shall be used to determine the credit limit

of DDM, shall be fixed considering the share of the products imported products (deemed to be manufactured in

India), in the total sales of the entire portfolio of products in India, during the previous financial year, including

sales to private sector.

iii. Tax Incentives: The Mega Projects shall be eligible to get the following fiscal and tax incentives, subject to fulfillment

of the other criteria as may be prescribed under the relevant fiscal and tax regulations:

a. On a request made by the promoter of the Mega Project, the GOI would endeavour to enter into a bilateral or

multilateral Advance Pricing Agreement (APA) to assure certainty in transfer pricings.

b. GOI shall take steps to notify a concessional rate on income tax on the payments made by the Mega Project to its

foreign affiliates for royalties, technical services and interest.

c. GOI shall take steps to provide exemption from the levy of dividend distribution tax on the profits distributed by

the Mega Project to its overseas parent.

d. GOI shall provide the benefits of Focus Product Scheme for the export of the products from DTA manufactured

by the Mega Project, including the goods eligible to be treated as deemed exports.

Additionally, the GOI shall provide the following covenants to facilitate the establishment of the Mega Project:

a. GOI shall establish a Single Window for enabling the promoters of the Mega Projects to obtain speedy clearances

and the concessions prescribed in this policy.

b. GOI shall assist the promoters of Mega Projects to pursue the respective state government (s) to secure

additional incentives as can be provided by those Governments.

c. The additional incentives prescribed under this policy shall be over and above those available under the normal

existing policies of the GOI.

d. The location of the Mega Project shall be treated as Brownfield Electronic Manufacturing Cluster for the purpose

of providing the incentives under NPE 2012.

The draft has been circulated to industry players and associations for their comments. A meeting was also held

under the Chairmanship of Shri J Satyanarayana, Secretary, DeitY to discuss the draft on Sept 12, 2013.

After taking into account the feedback received, the DeitY proposes to finalize the Mega Projects policy and move

for approval of the Government.

For more details, please contact, Shri S. K. Marwaha, Director, DeitY (email: [email protected]).

Second edition of ‘Semiconductor Technology and Manufacturing course’ at IITB to start in Dec. 2013 IITB conducted a Continuing Education Programme in Nov 2012 on ‘Semiconductor Technology and Manufacturing’ and

enrolled 50 delegates, 14 from industry and 36 from academia. This course run in collaboration with Applied Materials gives an

overview of the Semiconductor manufacturing process with actual hands on training on production tools used.

Based on strong positive feedback, second batch of the programme is being launched to be conducted from 10th-15th of

Dec 2013 at IIT Bombay. This is an evolved version and comes in the wake of the Government approval for Semiconductor Chip

manufacturing in the country. The 6-day course will include lectures from IIT Bombay faculty and experts from Applied Materials

on topics such as cleanrooms, tools and hardware, as well as process technology. There will be hands-on lab sessions on 200 mm

production-level tools for the course participants. Course information is available on http://www.cen.iitb.ac.in/cen/

events/cep_course.php. For more details, please contact Prof. Saurabh Lodha or Prof. Udayan Ganguly at [email protected].

• Electronic Manufacturing Cluster, Khushkera, Bhiwadi Rajasthan: An Outline

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Electronic Manufacturing Cluster, Khushkera, Bhiwadi Rajasthan

M/s ELCINA Electronics Manufacturing Cluster Private Limited (EEMCPL) has proposed setting up an Electronic

Manufacturing Cluster (EMC) in Bhiwadi, Rajasthan in an area of 100.7 acres of land and has been accorded in-principle

approval by DeitY. Details of this Greenfield EMC are as under:

Environmental clearance: The applicant will be submitting Technical Environmental Impact Assessment (EIA) report about

the proposed cluster in accordance to the Guidance manual for Industrial Estates along with the final DPR.

Proposed Project for which assistance sought: EEMCPL the SPV of the project, plans to establish and develop Basic

Infrastructure Network, Utility Plants, Common Facilities, Social Welfare Facilities, etc., over an area of 527.08 acres at an

estimated project cost of Rs 100.48 Crores.

Anchor clients/Interested parties: The Cluster would also endeavour to bring the entire gamut of electronic manufacturing

operations under one umbrella and facilitate all stages of the value chain of electronic manufacturing. 19 members of the

SPV have already been identified, who have contributed Rs. 9.09 Crore.

About the promoter: The Project is proposed by ELCINA (Electronic Industries Association of India), an Association

of electronic component manufacturers; incorporated under the Companies Act 1956 in Delhi. The promoters have

incorporated a Special Purpose Vehicle in the name of “ELCINA” Electronics Manufacturing Cluster Private Limited”

(EEMC) on Nov 21, 2012, a company incorporated under the Companies Act, 1956 (“SPV”) for the purpose of

establishing the Project.

Details of In-principle Approval: The in- principle approval for setting up a Greenfield EMC at Bhiwadi, in Rajasthan has been

accorded to M/s EEMCPL on September 17, 2013 for development of common/ basic infrastructure facilities at an estimated

cost of Rs 100.48 Crores.

Contact Details: Shri. Rajoo Goel, Secretary General, ELCINA , ELCINA Electronic Industries Association of India, ELCINA

House, 422, Okhla Industrial Estate Phase III, New Delhi 110020; Phone : 91-11-41615985, 26924597,26928053; Email:

[email protected]

Industrial Area, Bhiwadi, Rajasthan

Proposed Site for the EMC Indl. Area

at

Khushkhera

Indl. Area -Tapukara

7 K

M f

rom

D

ha

ruh

era

Jaip

ur

–20

0 K

m

2

EMC, Bhiwadi Location Map

Location: The proposed electronic cluster is situated in IA

Salarpur, (Khushkera Extn.), Bhiwadi, Alwar District in a 100.7

acre plot of land. The Industrial Area is situated on NH 8.

Road Connectivity: Located on National Highway 8 between Its

distances from Major cities are about 40 Km from Gurgaon, 90

Km from Alwar, 175 km from Jaipur and 60 Kms from Delhi.

Airport Connectivity: Nearest Airport is IGI New Delhi at 25 Kms.

Power Availability: 2 Feeder power lines are passing from the

close proximity of the Cluster site besides two substation of

220KV and 132 KV are also near the cluster site. ELCINA is

contemplating setting up a captive power plant with power

backup of 30% of estimated power demand in the proposed

electronic cluster

Water Availability: The total water demand is estimated at 2.3

MLD. The water supply to the Electronic Cluster will be through

a Ground Level Service Reservoir, Pumping Station, Elevated

Level Service Reservoir (ELSR) and a Distribution System.

• Electronic Manufacturing Cluster, Bhopal, MP: An Outline

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Electronic Manufacturing Cluster, Bhopal, MP

M/s Madhya Pradesh State Electronics Development Corporation Ltd. (MPSEDC) has proposed setting up an

Electronic Manufacturing Cluster (EMC) in Badwai, District Bhopal, Madhya Pradesh in an area of 50.0 acres of land and has

been accorded in-principle approval by DeitY. Details of this Greenfield EMC are as under:

Air Connectivity: Distance of the site from Bhopal International Airport is 3 km.

Inland Container Depot (ICD): The nearest ICD is situated at Mandideep, Distt. Raisen at a distance of 40 km.

Power Availability: Power to the EMC will be supplied by M.P. Power Distribution Company Ltd. of M.P. Power Transmission

Company Ltd., via a 33/11 kV substation planned within the cluster. The estimated power demand, as per the Applicant, is 7

MVA. For power backup, Diesel Generator (DG) sets would be used.

Water Availability: All water requirements (for Industries, for domestic use, for Green area maintenance, etc.) is planned to be

completed from Municipal Narmada line. Alternate provision for additional source of water will also be created through TubeWell.



Proposed Project for which assistance sought: MPSEDC the chief promoter of the project plans to establish and develop

Basic Infrastructure Network, Utility Plants, Common Facilities, Social Welfare Facilities, etc. over an area of 50.0 acres at an


Anchor clients/Interested parties: MPSEDC expects to house around 30 units in the cluster (31 plots in the EMC) with

expected investments by the units in the EMC to be Rs. 260 Crore. The Applicant has received Letters of Intent from 3

prospective constituent units, M/s HLBS Tech Pvt. Ltd., M/s EVDAT Software Technology Pvt. Ltd. and M/s Bharat Business

Channel Ltd., expressing their interest to setup units in the IT Park being developed in Badwai.

About the promoter: MPSEDC is a company limited by shares and a Govt. of M.P. Undertaking headquartered at Bhopal, M.P.

and incorporated on 18th Nov 1983 at Gwalior, M.P. MPSEDC is operational under Department of Information Technology,

Govt. of M.P. as the nodal agency to promote IT in the State its scope of work includes promotion & implementation of IT and e-

Governance. MPSEDC mandate includes opportunities for software development, supply of hardware and peripherals,

networking and connectivity, web applications, ecommerce, IT Capacity building and other direct and indirect IT businesses.

Details of In-principle Approval: The in- principle approval for setting up a Greenfield EMC at Badwai, Bhopali, in Madhya

pradesh has been accorded to M/s MPSEDC on 17th September 2013 for development of common/ basic infrastructure

facilities at an estimated cost of Rs 44.25 Crores.

Contact Details: Shri L.K.Tiwari, Addl General Manager, 47-A, State-IT Centre Area Hills, Bhopal-462011; E-Mail:

[email protected], [email protected].

EMC, Badwai, Bhopal Location Map

Location: The identified site is located adjacent to Ayodhya / Old

bypass road (NH-12) between Bhopal International Airport and

Bhopal Memorial Hospital & Research Centre (BMHRC). The site of

the proposed EMC (50 acres) is part of the Information Technology

Park (212.63 acres) being developed by MPSEDC. Near to the site is

Rajiv Gandhi Technical University, Bhopal; Development

Corporation’s Aero City and Bhopal International Airport.

Road Connectivity: NH-12 (connecting Bhopal—Jabalpur) is

adjacent to the site. Bhopal Inter-State Bus Terminal (ISBT) is

situated at a distance of 20 km.

Rail Connectivity: Bhopal being in the central zone of Indian

Railways, all major trains pass through the city including

Rajdhani / Shatabdi Express. Distance of the site from the main

railway station, Bhopal is 12 km.

• Electronic Manufacturing Cluster, Purva Village Jabalpur MP: An Outline

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Electronic Manufacturing Cluster, Purva Village Jabalpur MP

M/s Madhya Pradesh State Electronics Development Corporation Ltd. (MPSEDC) has also proposed setting up an

Electronic Manufacturing Cluster (EMC) in Purva Village, District Jabalpur, Madhya Pradesh in an area of 40.0 acres of land

and has been accorded in-principle approval by DeitY. Details of this Greenfield EMC are as under:

Power Availability: Power would be supplied by M.P. Power Distribution Company Ltd. of M.P. Power Transmission

Company Ltd., via a 33/11 kV substation planned within the cluster. The estimated power demand, as per the Applicant, is 7

MVA. For power backup, Diesel Generator (DG) sets would be used.

Water Availability: All water requirements (for Industries, for domestic use, for Green area maintenance, etc.) will be completed

from Municipal Narmada line. Alternate provision for additional source of water will also be created through TubeWell.



Proposed Project for which assistance sought: MPSEDC the chief promoter of the project plans to establish and develop

Basic Infrastructure Network, Utility Plants, Common Facilities, Social Welfare Facilities, etc., over an area of 40.00 acres at an


Anchor clients/Interested parties: MPSEDC plans 39 plots (over an area of 22.03 acres) in the cluster for the manufacturing units

with expected investments by the units of Rs. 103 Crore. MPSEDC plans to target units with a specific focus on Set top box &

accessories, Solar modules, LED lighting, CCTV cameras, Medical Electronics, Control panels, Mobile charger, USB, etc.

About the promoter: MPSEDC is a company limited by shares and a Govt. of M.P. Undertaking headquartered at Bhopal, M.P.

and incorporated on Nov 18, 1983 at Gwalior, M.P. MPSEDC is operational under Department of Information Technology, Govt.

of M.P. as the nodal agency to promote IT in the State its scope of work includes promotion & implementation of IT and e-

Governance. MPSEDC mandate includes opportunities for software development, supply of hardware and peripherals,

networking and connectivity, web applications, ecommerce, IT Capacity building and other direct and indirect IT businesses.

Details of In-principle Approval: The in- principle approval for setting up a Greenfield EMC at Badwai, Bhopali, in Madhya

pradesh has been accorded to M/s MPSEDC on Sept. 17, 2013 for development of common/ basic infrastructure facilities at

an estimated cost of Rs 40.95 Crores.

Contact Details: Shri L.K.Tiwari, Addl General Manager, 47-A, State-IT Centre Area Hills, Bhopal-462011, e-Mail:

[email protected], [email protected].

EMC, Purva, Jabalpur Location Map

Location: The identified site for the proposed EMC (40 acres) is

part of the IT Park (61.8 acres) being developed by MPSEDC. The

site is located on a hillock in Bargi Hills (Nagpur Road) area in

southwest part of Jabalpur city. The surrounding region has

good amount of residential areas, hospitals, schools and

colleges in the vicinity including ‘Naya Gaon’ residential colony,

Gyan Ganga College of Technology and Netaji Subhash Chandra

Bose Medical college. The site is located within the boundary of

Jabalpur Municipal Corporation.

Road Connectivity: NH-7 (connecting Bangalore-Kanyakumari)

is adjacent to the site and is 8 kms from the main bus-stand.

Rail Connectivity: Distance of the site from the main railway

station is 11 km.

Air Connectivity: Distance of the site from the Airport is 24 km.

Inland Container Depot (ICD): The nearest ICD is situated at

Nagpur (Maharashtra) at a distance 270 km and at Mandideep,

Distt. Raisen (M.P.) at a distance of 280 km.

• IECEE discusses Compulsory Registration Scheme with DeitY

|



IECEE discusses Compulsory Registration Scheme with DeitY

Sh. Sachdeva, Sr. Director, Deity with Mr. Ruvo, ES & COO, IECEE and other participants at the discussion

Mr Ron Collis, Chairman of IECEE (IEC System for Conformity Testing and Certification of Electrotechnical Equipment

and Components) and Mr Pierre de Ruvo, Executive Secretary & COO of IECEE visited DeitY on Oct 18, 2013 under resolution

of Certification Management Committee of the IECEE (CMC) from its meeting held in Vancouver this year. The CMC had

resolved to empower Executive Secretary and Chairman of the IECEE to take due action and negotiate with Indian Authorities

to resolve the risk of non-acceptance of Test / Certification data issued under IECEE. From DeitY side, the discussion was led by

Shri Arun Sachdeva, Sr. Director & OSD to Secretary. The meeting was also attended by Sh. A K Chawla and Smt. Asha Nangia,

both Directors in DeitY, Sh G C Saxena, Director, STQC and Sh A K Sharma, Director, BIS.

The situation arising out of Compulsory Registration Scheme (CRS) Order issued by DeitY mandating Indian Safety

Standards for 15 categories of electronics goods was discussed. The IECEE team impressed upon the fact that the CB Scheme

was widely accepted and India was an important member of the scheme. IECEE team also expressed that CB Labs were very

experienced and could as such contribute to the motive of providing safe goods to Indian Consumers while facilitating

manufacturers with convenient method to comply with the regulation. CB Scheme is multilateral agreement to allow

international certification of electrical and electronic products so that a single certification allows worldwide market access.

From Indian side it was explained that the Consumer awareness levels in India were low, increasing import of

electronics goods and associated increase in substandard import was threatening the safety of consumers. It was also explained

that unlike the option available under the licensing regime under which ISI Mark could be invoked, India has gone ahead with a

liberal mechanism of conformity assessment based on self-declaration approach. The due stakeholder consultation process that

was used for bringing out the CRS Order was informed and it was explained that whereas India would be willing to review the

process with time, under current situation it was only best feasible to go in the present form of the regulation. Bringing out

clearly that while CB Scheme was a multilateral arrangement between various NCBs and regulators in different countries even

when members of the CB Scheme have already adopted different approaches, India had no reservations if various NCBs in India

intended to use CB Scheme as a basis for their respective voluntary certifications. It was further made out that however for the

regulated goods mechanism of Compulsory Registration Process could only be followed. Mr. Sachdeva also explained that no

differential treatment was being meted out to the test labs being enabled for the purpose and even Indian CB Labs had to go

through the BIS Recognition Process. In-fact besides other issues, Indian environment being different on account of

environmental, transportation, power supply conditions, etc., it was just essential to follow the laid down process.

Mr. Collis expressed that it was important for India to be part of the process of the IECEE-CB to remain on table to

negotiate their point of view. Mr. Ruvo indicated that it was also equally important for the IECEE Scheme to have an important

member like India on board. Mr. Ruvo further stated that certain procedures covering Manufacturer facility based........

..…. Contd. on page 12

• ESSCI to train 8500 persons under STAR scheme • Labs Recognized for Testing of Electronics Products

|



ESSCI to train 8500 persons under STAR scheme

Seventh Governing Council Meeting of Electronic Sector Skill Council of India (ESSCI) and the first AGM was held on

Sept. 23, 2013. Among others, a plan to train 8,500 trainees under STAR scheme up to March 2014 under the STAR scheme

was finalized.

The first ESSCI Training Programme for ‘TV Repair Technician’ was launched in Kolkata on Oct 21, 2013. It is being

conducted by Providers Skill Academy Pvt. Ltd., Chennai.

Further, ESSCI has completed occupational mapping for IT Hardware and Consumer Electronics and the study for

remaining 10 sub-sectors is in progress. Sub-committee on IT Hardware has met twice and has identified 15 job roles and 15

National Occupational Standards (NOS) are under preparation. For Consumer Electronics, occupational mapping report has been

received. It is to be reviewed by a Sub-committee for Consumer Electronics.

ESSCI has also signed an MOU with Kerala State Govt. on Sept 24, 2013 for Skill development in PCB related courses.

Shri Ajai Chowdhry, Chairman, ESSCI also made a presentation to Shri Jairam Ramesh, Minister for Rural Development

Ministry on Oct 8, 2013. The Minister appreciated in the skill development plan of ESSCI, particularly the self employment in

rural areas. Based on the feedback, ESSCI is also planning to add an entrepreneurship module in related training programmes.

For more details, please contact Shri Pradeep Doshi, ESSCI (Email: [email protected]).

Labs Recognized for Testing of Electronics Products

An updated list of labs recognized by BIS under “Electronics and Information Technology Goods (requirements for

Compulsory Registration) Order, 2012” as on Oct 10, 2013 is as follows:

S. No. Name of the laboratory Scope in terms of safety standards

1 Electronics Regional Test Laboratory (North) New Delhi IS 616:2010, IS 13252(Pt-1):2010, IS 302-2-26:1994

2 Electronics Regional Test Laboratory (East),

West Bengal

IS 616:2010, IS 13252(Pt-1):2010

IS 302-2-25:1994, IS 302-2-26:1994

3 Electronics Regional Test Laboratory (West), Mumbai IS 616:2010, IS 13252(Pt-1):2010

4 Electronics Test & Development Centre, Bengaluru IS 616:2010, IS 13252(Pt-1):2010

IS 302-2-25:1994, IS 302-2-26:1994

5 UL India Pvt. Ltd., Bengaluru IS 616:2010, IS 13252(Pt-1):2010, IS 302-2-25:1994

6 UL India Pvt. Ltd., Manesar (Haryana) IS 13252(Pt-1):2010

7 TUV Rheinland (India) Pvt. Ltd., Bangaluru IS 616:2010, IS 13252(Pt-1):2010

IS 302-2-25:1994, IS 302-2-26:1994

8 Intertek India Pvt. Ltd., New Delhi IS 616:2010, IS 13252 (Pt-1):2010

9 Conformity Testing Labs Pvt. Ltd., New Delhi IS 616:2010, IS 13252(Pt-1):2010

IS 302-2-25:1994, IS 302-2-26:1994

10

Bharat Test House Pvt. Ltd., Sonepat (Haryana) IS 302-2-25:1994, IS 302-2-26:1994

IS 616 : 1990, IS 13252(Pt-1): 2010

11 HI Physix Laboratory India Pvt. Ltd., Ranjangaon ( Pune) IS 616:2010

IS 302-2-25:1994, IS 302-2-26:1994

The labs are being progressively recognised for the purpose by BIS. For latest information, please refer to

http://www.bis.org.in/other/ITCompReg.htm

• CEAMA’s Conference on Flat Panel TVs Organized

|



CEAMA’s Conference on Flat Panel TVs Organized

Lighting of lamp and Dignitaries at the dais

CEAMA organized an International Conference on “Emerging Trends in Flat Panel TVs” on Oct 22, 2013 at New Delhi.

Shri J. Satyanarayana, IAS, Secretary, Department of Electronics & IT, was the chief guest for the conference. The conference

discussed on progressive steps to find practical solutions that will result in the creation of a long-term, sustainable

investment model and will prepare the Industry for technological advancements taking place in Flat Panel TV Segment.

Eminent Speakers included the Policy makers, Senior Government officials, distinguished personalities of international repute

and Indian Electronic Industry leaders.

Secretary, DeitY told, in his address, that there is ample opportunity in the sector of consumer electronics and the

industry need to come forward with new projects and investments and avail GOI incentives. Shri Satyanarayana released the

research report on “Emerging Trends in Flat Panel TVs” prepared by CEAMA & Frost & Sullivan. Dr. Ajay Kumar, Joint

Secretary, DeitY also spoke on the occasion.

According to CEAMA, LCD/LED TV Segment has been growing rapidly for last five years and will completely be

replacing CRT TVs in next 3-4 years. There are many technological advancement taking place in Flat Panel TV Segment such

as introduction of OLED TVs and ultra High Definition TVs, which would prepare the Indian Consumer Electronic Industry to

plan the development & manufacturing of next generation of Flat Panel TVs and explore greater value addition in the

country. All these developments will certainly enhance the viewing pleasure of consumers.

Mr. Anirudh Dhoot, President, CEAMA & Director, Videocon Industries, Mr. Manish Sharma, Managing Director,

Panasonic India, Mr. H.C Hung, Vice President, AUO, Mr. Rishi Tandan, Marketing Head, LG Electronics, Mr. Niju V,

Director, Frost & Sullivan, Mr. Indrajit Ghosh, Director, Display Search and Mr. Sunil Khandkar, Director, Samsung Asia

also spoke at the event.

….. Contd. from page 10.

……. testing to which India had also raised formal reservations, were set to be taken up in future meetings of the IECEE.

Indian Side explained that India was appreciative of the efforts being made under the IECEE. It was indicated that India had

already been accepting IECEE-CB Test Report for granting temporary registration and interim extensions to applicants under CRS. It

was only a considered view from Indian perspective that CB Certified Safety Critical Components for the notified goods were being

accepted for the purpose of Compulsory Registration even setting aside the requirements to have ISI Mark under licensing Scheme

of the Bureau of Indian Standards and even when Indian Standards were still at variance with the IEC ones.

While agreeing to that there was no infringement of the IECEE Rules and procedures by India, the visiting IECEE team

stated that the inputs gathered during the meeting would help them dispel the false notions that were growing in the International

Community with respect to India’s stand on this Order. The meeting concluded to work further to see that India’s participation in

the IECEE-CB increases with time.

• SEZ Units allowed to sub-contract production to DTA units • HES Exemptions from CRS

|



SEZ Units allowed to sub-contract to DTA units for upto 3 yrs

Department of Commerce, Ministry of Commerce & Industry,

Government of India vide its order October 11, 2013 has allowed sub-

contracting of production or any production process by large

manufacturing SEZ Units to Domestic Tariff Area (DTA) units for a period

up to 3 years at a stretch, instead of giving it on annual basis. For

availing this permission, following conditions have to be observed:

a. The SEZ unit should be a manufacturing unit (not including

Gems & Jewellery Sector units.

b. Such a unit should have substantial exports with average annual

exports of Rs. 1000 Crore or more in at least two out of four

years (i.e., current plus previous three years)

c. The unit should have been Net Foreign Exchange Earner over

the past 5 years block.

d. The unit should have an annual average export of not less than

51% of its total turnover in the block of 5 years.

e. The Unit should have an un-blemished track record and no

penalties against the unit for any violations under the Customs

Act, FTDR Act etc., should have been imposed.

f. The Bond-cum LUT signed by the SEZ unit should adequately

cover the goods which leave the SEZ for sub-contracting.

g. The period for which sub-contracting is allowed will not exceed

the validity period of the LOP of the SEZ unit.

h. The DTA unit to which the sub contract is to be awarded should

be registered with the Central Excise Department.

i. No Sub-contracting should be permitted for goods which are

restricted/prohibited or otherwise not permitted under any

provision of the SEZ Act and Rules.

j. Sub-contracting would also not ordinarily be permitted for

goods which attract anti-dumping duty as per EXIM Policy.

k. Such permission should be granted with the approval of the

Development Commissioner SEZ.

A copy of the order is available at www.deity.gov.in/esdm.

Indian Exports of SMART CARDS (HS Code 852352)

Top 5 destinations (Units)

2008-2009 2009-2010 2010-2011

GERMANY GERMANY GERMANY

UAE UAE SAUDI ARAB

U S A S. AFRICA S. AFRICA

SINGAPORE KOREA RP FRANCE

INDONESIA TUNISIA TURKEY

2011-2012 2012-2013 2013-2014

(Apr-Jun)

GERMANY SINGAPORE FRANCE

S. AFRICA GERMANY GERMANY

FRANCE S. AFRICA ANGOLA

EGYPT SAUDI ARAB S. AFRICA

U S A U K SAUDI ARAB

(Value in US$ Million)

Highly Specialized Equipments

Exemptions from CRS

In accordance with Circular-I of 2013

issued by DeitY regarding Highly Specialized

Equipments (HSE) under Compulsory

Registration Scheme (CRS), the department

had approved and notified that HSE category

has been exempted from testing and related

registration with BIS. The DeitY has also

initiated a process for grant of letters to

manufacturers and/ or there authorized

representatives in India, wherever

necessary, for import of HSE goods. Till

date, eight letters have been Granted under

this category.

M/s PWC and M/s Accenture to man PMU in DeitY

Two consulting firms, i.e., M/s Pricewaterhouse coopers Pvt. Ltd.

and M/s Accenture Services Pvt. Ltd. have been selected for assisting in

appraisal of applications being received under EMC and MSIPS scheme

at DeitY at a Programme Management Unit (PMU) to be setup for a

period of 3 years at DeitY.

This is expected to expedite the appraisal of MSIPS and EMC

applications in DeitY.

Published by: Department of Electronics and Information Technology, Ministry of Communications & Information Technology

Electronics Niketan, 6, CGO Complex, New Delhi 110003

| ELECTRONICS

e-NEWSLETTER …. For Electronics System Design & Manufacturing (ESDM)

• FDI in excess of 26% allowed in Defence Production • Status of MSIPS Applications

FDI in excess of 26% allowed in Defence Production

Department of Industrial Policy and Promotion has decided that FDI

proposals for investment in Defence sector above 26% will be referred to

Cabinet Committee on Security (CCS) on case to case basis. The proposals

promoting access to modern and ‘state-of-art’ technology are proposed to be

encouraged through this route. Till now there was no provision for

consideration of FDI proposals above 26% in the Defence sector.

All applications seeking permission of the Government for FDI in

defence would be made to the Secretariat of the Foreign Investment

Promotion Board (FIPB) in the Department of Economic Affairs. Applications

for FDI up to 26% will follow the existing procedure with proposals involving

inflows in excess of Rs. 1200 Crore being approved by Cabinet Committee on

Economic Affairs (CCEA). Applications seeking permission of the Government

for FDI beyond 26% will in all cases be examined additionally by the

Department of Defence Production (DoDP) from the point of view particularly

of access to modern and 'state-of-art' technology.

Based on the recommendation of the DoDP and FIPB, approval of the

Cabinet Committee on Security (CCS) will be sought by the DoDP in respect of

cases which are likely to result in access to modern and 'state-of-art' technology

in the country. Proposals for FDI beyond 26% with proposed inflow in excess of

Rs. 1200 Crores, which are to be approved by CCS will not require further

approval of the Cabinet Committee of Economic Affairs (CCEA).

For more details please refer to DIPP circular dated August 22, 2013.

Editorial Board

Chief Editor : Dr. Ajay Kumar, Jt. Secretary, DeitY

Editor : Sh. Akhilesh Saurikhia, Sr. Consultant

Member : Dr. Debashis Dutta, GC, DeitY

Member : Sh. Akhila Chandra Jha, DDG, DGFT

Member : Sh. G. Prasad, Scientist E, MNRE

Member : Sh. S.K. Marwaha, Director, DeitY

Member : Dr. R. C. Chopra, Sr. Advisor, CII

For detailed information on Government of India

policies, please visit

ESDM page on

www.deity.gov.in/esdm

Status of MSIPS Applications

The MSIPS applications status (as on 29/10/2013) is as under:

# Sector Amount Approved

1 Consumer Electronics and Appliances 450 Nil

2 Hand held devices 6744 406

3 Telecom Products 1770 NIL

4 LEDs and LED Products 310 11

5 LED Fab 1784 Nil

6 Electronic Components 45 NIL

7 Automotive Electronics 707 544

8 Power Electronics 40 NIL

9 Strategic Electronics 210 NIL

10 ATMP - Semiconductor 750 NIL

11 Solar Photovoltaics 41 NIL

(All amounts in Rs Crores.)

• Total investment involved is about Rs. 12851 Crores.

• Total Number of applications received is 21.

Indian Imports of SMART CARDS (HS Code 852352)

Top 5 destinations (Units)

2008-2009 2009-2010 2010-2011

CHINA P RP CHINA P RP CHINA P RP

SINGAPORE SINGAPORE SINGAPORE

NETHERLAND KOREA RP NETHERLAND

U K NETHERLAND HONG KONG

ITALY HONG KONG SWITZERLAND

2011-2012 2012-2013 2013-2014

(Apr-Jun)

CHINA P RP CHINA P RP CHINA P RP

HONG KONG HONG KONG NETHERLAND

TAIWAN TAIWAN SINGAPORE

SINGAPORE NETHERLAND NORWAY

NETHERLAND NORWAY KOREA RP

(Value in US$ Million)

e-newsletter deity oct 2013

Documents

electronics niketan

area of electronics

sector skills councils

crore scheme

training people

training partners

new delhi

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