IESA WINWire Jan 02 - Jan 08, 2016
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Investment in electronics manufacturing at Rs 1.14 lakh crore
Source: The Times of India; January 1, 2016

Investment in the electronics manufacturing sector has jumped over six-fold in a year to reach Rs 1.14 lakh crore by December 2015, telecom minister Ravi Shankar Prasad said. "Investments in electronic manufacturing reached Rs 1.14 lakh crore by December 2015," Prasad tweeted today. The minister's tweet shared a picture which showed that the electronic manufacturing space had attracted investment worth Rs 17,390 crore involving 53 units by December 2014. As many as 159 units attracted investment of Rs 1.14 lakh crore by December 2015. India Electronics and Semiconductor Association (IESA) President MN Vidyashankar said, "The progressive policies and aggressive focus on 'Make in India' initiative have played a significant part in the resurgence of the electronics manufacturing sector during the year. Industry body CEAMA President Manish Sharma said that the diversification of the Modified Special Incentive Package Scheme (MSIPS) by the Department of Electronics and IT (DEITY) has given thrust to industry by including 15 more categories across the consumer durables within its scope. According to CEAMA, there has been a steady increase in the manufacturing base of Consumer Electronics & Home Appliances in six months, in particular the set top boxes.

Centre gives in-principle nod to Tuem electronic manufacturing cluster
Source: HeraldGoa; January 1, 2016

Rubbishing reports of opposition to the proposed Electronic Manufacturing Cluster (EMC) at Tuem, Chief Minister Laxmikant Parsekar on Thursday announced that the Central Government has granted ‘in-principle’ approval to Rs 150 crore green field projects, which will be a hub to promote investment in Information Technology (IT). Addressing media persons, Parsekar said the Union Ministry for Electronics and Information Technology has granted its in-principle approval to the project and would provide Rs 50 crore as grants. “The master plan of the EMC will be ready in next three months,” the Chief Minister said, adding that the IT department has already finalised the consultant for the project and the work order for drafting the master plan would be issued next week. Asked about opposition from locals to both EMC and IT park at Chimbel, Parsekar said, “There is no opposition but only anxiety amongst the locals.” “As far as I know, there is no opposition to the projects. People have anxiety as to whether they will get employment, what are the benefits to the locals, etc. Once the master plan is ready, the government will be in better position to explain to the locals about its benefits,” the Chief Minister said. The IT Park, Chimbel, will be spread across three lakh sq metres while the electronic cluster at Tuem will be accommodated in five lakh sq mtrs. The land at Chimbel, which was initially in possession of the Health Department, has been transferred to IT.

Weapons manufacture is backbone of ‘Make in India’ programme: Modi
Source: The Hindu Business line; January 3, 2016

“Self-reliance in the area of security needs is crucial. We have to make our own weapons and ‘Make in India’ is a step towards achieving it,” Prime Minister Narendra Modi said. Laying the foundation stone for HAL’s greenfield helicopter project at Biderehalla Kaval village, near Tumakuru, Modi said: “If India has to be self-reliant in its security requirements, our armed forces need the latest and modern equipment. We have to make our own weapons.” “Making weapons in India rather than importing them is our motto and it is the backbone of our ‘Made in India’ programme.” Modi said the country spends crores of rupees to import defence equipment but receives relatively outdated technology and equipment. “If we buy in 2016 we get delivery not earlier than 2020.” “At present we import weapons from other countries to equip our armed forces…Now, we have made it a policy that before striking a deal for weapons, the government puts in a condition in the agreement to make a part of the weapons in India,” he explained. “A facility like this (HAL) will not only strengthen the armed forces, but also realise the dreams of Babasaheb Ambedkar, who was a champion of industrialisation,” he added. Karnataka Chief Minister Siddaramaiah said the State has taken steps to get the project implemented at a fast pace. Some 610 acres of government land has been allotted and transferred at a concessional rate of ₹1 lakh an acre, he added.

Set-top boxes to become cheaper with indigenous CAS systems
Source: IBNLive; January 4, 2016

Set-top boxes (STBs) are likely to become cheaper as an indigenously-developed solution for conditional access system (CAS) will be made available to domestic manufacturers at less than half the current prices. Domestic CAS licences will be provided for around Rs 32 or $0.5, compared to the current market cost of $2-3 per licence. The average cost of one STB is in the range of Rs 800-1200. According to an official in Communications and IT Ministry, the indigenous CAS has been developed by state-run C-DAC along with a Bangalore-based firm ByDesign. "The developer will make available Indian CAS to all domestic manufacturers of STBs and operators at not more than $0.5 per licence," the official said. The total cost of the project is Rs 29.99 crore, of which Department of Electronics and IT (DeitY) will contribute Rs 19.79 crore, while ByDesign will provide the rest. C-DAC, which falls under DeitY, undertakes research and development in the field of IT, electronics and associated areas.

The official said that the project will soon be flagged off for commercial implementation. In order to boost domestic manufacturing, the government had declared STBs as telecom network equipment, a move that will help domestic manufacturers produce them at more competitive prices by availing tax exemptions.

Make in India: Hardware group MAIT seeks sops for PC makers
Source: ET Telecom; January 4, 2016

A lobby group of IT hardware vendors has said that the Narendra Modi government's 'Make in India' programme has neglected them while giving preference to mobile device makers, demanding incentives for manufacturing in the country. The manufacturing facilities of personal computer vendors are highly underutilised and no new IT company is willing to set up production base in the country, Anwar Shirpurwala, executive director at the Manufacturers Association of Information Technology told ET. "Due to the government's current duty treatment and disabilities, no new PC maker is willing to establish its production base," Shirpurwala said. "In addition, no component-level manufacturing is happening in India, despite a $5 billion strong PC market in the country," he said. Bigger domestic firms such as Wipro and HCL have shut down their computer hardware manufacturing facilities in India, while only a few multinational companies such as Hewlett-Packard, Lenovo, Samsung and Acer have production units in the country, but these too are highly underutilised, he said. "If duty differential will come, we will be able to replace imports with domestic manufacturing," Shirpurwala said. He said that while PC manufacturers agreed that mobile devices have a large potential in the country, any contract manufacturer should be attracted to come and manufacture a basket of products, and not just one set.

New Incubation Centre Coming Up At Bhilai STPI
Source: Daily Pioneer; January 5, 2016

A new state-of-art Incubation Centre will soon come up in the Steel City at the Software Technology Parks of India (STPI) premises. The Incubation Centre which works under the Department of Electronics and Information Technology under the Union Ministry of Communications and Information Technology would be established in 25,000 sqft of area. The STPI Bhilai had been operational since 2002 for promotion of IT and ITes from the region. The STPI in Bhilai had been providing incubation services to start-ups and SMEs. On the other hand, in February last year, The National Association of Software and Services Companies (NASSCOM) had announced that it would establish its ‘Incubation Centre’ in Chhattisgarh, officials stated. Chief Minister Raman Singh during his visit to Bengaluru where he was as chief guest to attend ‘Vision Summit- 2015’ organised by the India Electronics and Semi-Conductors’ Association (I.E.S.A) in Bangalore, Karnataka had stated that he had met the Chairman and senior scientists of Indian Space Research Organisation (ISRO) and the representatives of NASSCOM during the ‘Vision Summit -2015’. Singh had stated that NASSCOM will open an ‘Incubation Centre’ in Chhattisgarh which will provide better guidance, technical knowledge and information related to the industry besides other help to the IT students.

UDM Pitches for Make-In-India Metro E-Gates
Source: Daily Pioneer; January 5, 2016

In tune with the Modi Government’s ‘Make-in-India’ initiative, the Union Urban Development Ministry is seeking to indigenously develop electronic gates at the entry and exit points for the Metros to cut down expenditure cost as well as curb ‘outflow of wealth’. Presently, a few companies from abroad are enjoying monopoly in manufacturing these gates costing around `5 lakh each to the Government. The Ministry’s decision to manufacture these structures in-house came in view of increasing demand for metros coming up across the country and ‘curb outflow of wealth’. This was decided at a meeting of the Committee for Standards and Specifications of National Common Mobility Card under the chairmanship of DS Mishra, UD additional secretary held recently which was attended by senior officials from the UD Ministry and other stakeholders. The panel asked the Bangalore-based Centre for Development of Advanced Computing (CDAC) to explore the ways of constructing the Metro gates and complete eco-system around it to do away the dependency on the foreign firms. CDAC is the premier R&D organisation of the Department of Electronics and Information Technology (DeitY), Ministry of Communications & Information Technology (MCIT) for carrying out R&D in IT, Electronics and associated areas. “

PHDCCI and DEITY organise 'Electronics in Security and IoT' conference
Source: Digit; January 5, 2016

The PHD Chamber of Commerce and Industry (PHDCCI), in association with the Department of Electronics and Information Technology (DEITY) organised a conference called ‘Electronics in Security and IoT’ in New Delhi on December 4. The aim of the conference was to discuss how to encourage SMEs to manufacture safety electronics to boost manufacturing in India and become a major source of employment in rural India. The conference also discussed how Indian startups can take the concept of Internet of Things (IoT) forward. It was presided by a number of eminent panelists and was attended by a large number of delegates which included diplomats, electronic component manufacturers, IT companies and more. R.P Jhalani, Chairman, Committee on Electronics and Engineering Goods emphasised the importance of the electronics industry in India’s economic growth during his welcome address. He added that in 2012, the Indian electronics industry stood at $69.6 billion and is expected to reach $400 billion by 2020. Jhalani said that the global IoT market is going to get bigger and may touch $7 trillion globally by 2020 as per data by the International Data Corporation (IDC). He also added that firms were resorting to mergers and acquisitions and are coming up with new ideas for IoT. N.K Mohapatra, CEO, Electronics Sector Skill Council of India (ESSCI), said that the demand is not in existing jobs, but newer jobs which include safety and electronics along with IoT.

More than Make in India, need Invent in India: Nobel laureates
Source: The Times of India; January 5, 2016

Four of the five Nobel Laureates attending the Indian Science Congress here said that India must focus on discovering, inventing and making here and not just making. "I think your Prime Minister Narendra Modi's slogan must change to invent in India from Make in India," American particle physicist and Nobel winner Professor David J Gross said on Monday. "Making in India is obviously important for the country, but to make in India without dependence on others, you must invent in India, and to invent you must discover.Because it is discovery and inventions that lead to products that can be made," Gross said. Professor Dan Shechtman, echoing Gross, said there must be a strategic plan. While the need to innovate, discover and invent must be the first goal, there must be a simultaneous effort at enhancing entrepreneurship. "The inventions must be taken from the universities to start-ups," he said. For this, he said there must be more people who are interested in science. "And for that you must begin teaching science at a very young age," he said. Fields Medalist Manjul Bhargava, while acknowledging tremendous talent in India, said: "There is not enough fostering or encouragement. A lot of good talent in India just gets into engineering. Engineering is important, but it is science that drives engineering. A lot of Indian institutes have huge vacancies, we must encourage students to take up science and eventually fill these spaces up."

Pitroda Keen on Odisha's Offer for Technology Advisor
Source: Business Standard; January 5, 2016

The Odisha government is in the process of roping in telecom czar Sam Pitroda as an advisor (technology) to the state for the development of telecom, electronics, IT (information technology) and ITes (enabled services) sectors. Credited with having laid the foundation for India's telecommunications and technology revolution in the 1980s, Pitroda may advise the state in creating the infrastructure in the IT, ITes and telecom sectors. The founder and first Chairman of India's Telecom Commission is also expected to leverage his experience and contact base to attract investments to Odisha. "We had sent a request to Sam Pitroda for accepting the offer of advisor (technology) to the state government. He has expressed his keenness for the assignment. The state government is awaiting the final confirmation from his office", said state IT minister Pranab Prakash Das. After a request from the state government Pitroda is believed to have expressed his willingness to the state's proposal.

"However, the nitty-gritty is being chalked out. He has considered to the state's offer with no salary and remuneration of any kind", sources said. Pitroda, who has his roots in Odisha, recently visited the state to release his autobiography book 'Dreaming Big: My Journey to Connect India'.

UP to declare policies for defence manufacturing, startups
Source: Newsgram; January 6, 2016

New policies for defence manufacturing and startups will be soon announced by the Uttar Pradesh government, an official said on Tuesday. At a session in the Taj city on the second day of the ‘UP Pravasi Diwas’, principal secretary for infrastructure and industrial development Mahesh Gupta said the state government had over the last three years maintained a sharp focus on all critical factors that catalyse industrial development. He said the government would shortly introduce new policies on defence manufacturing and startups. Among other key initiatives, the government is working to ensure total self-sufficiency in power by December 2017, he said. “The UP government is not only developing new growth centres but has also taken key steps to revive traditional industrial centres like the development of the Trans-Ganga City, Saraswati Hi-tech City, and Plastic City in Auriya and IT City in Lucknow,” he told the gathering of PIOs and NRIs. The official also said that while investors have always expressed keen interest in cities like Lucknow and Noida, there was a growing interest among investors to also foray into the eastern, central and Bundelkhand regions of the state after the Mumbai Investment Conclave last year. PK Gupta, chairman of Cafe Buddy Foods Pvt Ltd, said food processing holds immense potential in Uttar Pradesh and investors would increasingly view the state as a major hub for food processing business. Hari Om Rai, chairman and managing director of Lava International Ltd., said India was emerging as a key destination for low-end manufacturing, and within the country, Uttar Pradesh could be one of the preferred destinations.

Make in India is all about mindset: Parrikar
Source: The Hindu; January 7, 2016

“The Make In India initiative is basically all about mindset,” Defence Minister Manohar Parrikar said here on Wednesday. Inaugurating the International Conference on Enabling Make in India (ICEMII): Challenges and Opportunities for Engineering Education organised by KLE Technological University in association with Indo-U.S. Collaboration for Engineering Education (IUCEE), Mr. Parrikar said: “Make in India is about having a mindset for quality, efficiency, ability to execute, refining bureaucracy and above all, integrity.” In the inaugural session, in which he turned a story teller by referring to various anecdotes and jokes, the Defence Minister explained the concept of Make in India in detail and what was required to be done to make it happen. He said that zero tolerance to error was another important aspect that was required to make the initiative taken up by Prime Minister Narendra Modi to achieve the goal. Referring to brain drain, through which, he said, India had lost talent pool, the Minister elaborated on what is needed for making Make in India happen and what the government is doing. Emphasising the need for building a talent pool of adequate quantity, Mr. Parrikar said that talent pool should not be mistaken for just literacy. The Minister also referred to the Pathankot terror attack and said that the armed forces had handled the threat efficiently and that he was proud of them for the fantastic job done.

Kinfra eyes Rs.700 crore investments
Source: The Hindu; January 7, 2016

Kerala Industrial Infrastructure Development Corporation has lined up a slew of production parks involving total investments of more than Rs. 700 crore. An electronics manufacturing park will come up on 70 acres in Kakkanad. The project involves an investment of more than Rs. 100 crore and will also get Rs. 50 crore as a grant from the Union government. The electronics park will have an anchor investor and at least six other investors, said G. C. Gopala Pillai, Kinfra managing director. Kinfra also plans an international convention-cum-exhibition centre at Kakkanad, where the Corporation is in possession of 20 acres for the project. It will involve an investment of Rs. 180 crore and the project will be implemented in collaboration with India Trade Promotion Organisation, premier trade promotion agency under the Union ministry of commerce and industry. The proposed parks include a defence production park involving an investment of roughly Rs. 130 crore,. He said that Kinfra was in possession of 60 acres at Ottappalam for the defence park and that the facility would be the first of its kind in the country. The project will get Rs. 50 crore as a grant from the Union government. A mega food park will come up in Palakkad, where Kinfra is in possession of 75 acres. The project involves an investment of about Rs. 130 crore, and will get Rs. 50 crore in grant from the Union government.

Foxconn to make 4G smartphones at Navi Mumbai from March
Source: Business Standard; January 7, 2016

The official said the company was yet to formally apply for allotment of 1,500 acres for its manufacturing and research and development. Foxconn, the Taiwanese electronic contract manufacturer, will produce smartphones from its Navi Mumbai manufacturing facility from March, said an official of the state government's industries department. It had told them, the official said, that these fourth-generation (4G) technology devices would be for Reliance Jio (commercially launching its service in April) and for Chinese phone maker Xiaomi, an existing customer. The official said the company was yet to formally apply for allotment of 1,500 acres for its manufacturing and research and development. The company had eyed land at Khopoli in Raigad district and Chakan-Talegaon in Pune district. ''Senior executives are expected to soon meet with officials of Maharashtra Industrial Development Corporation. MIDC will notify the necessary land after it receives Foxconn's proposal,'' the official added. Typically, Foxconn and rival global electronic contract manufacturers such as Jabil, Flex and Sanmina follow their clients in setting up factories. Foxconn had a factory to make Nokia phones on Chennai's outskirts, close to the Finnish mobile maker unit. When Nokia shut its operations after Microsoft bought the company, so did Foxconn.

Consumer durables: Consensus on hurdles, opportunities crucial
Source: Mint; January 7, 2016

On the sidelines of an extremely vibrant atmosphere created by various projects initiated by the government, the consumer electronics and appliances industry is growing at a healthy pace. Call it Make in India, Digital India or Swachh Bharat, the industry has started to align itself with the broad agenda of the government. Unfazed by the challenges, the industry continues to be optimistic. The Indian market for consumer electronics and appliances is valued at $9.7 billion in 2015 and is expected to grow to $20.6 billion by 2020 to become the fifth-largest in the world by 2025. Last year, a below-normal monsoon and a consequent dip in sentiment in rural markets hit sales of consumer durables during the festive season. Festive season is the time when consumers are the most excited as the purchasing is planned in advance and it comes once in a year. The industry saw a sales growth of 10% during the season. Earlier last year, the budget announced many changes to put together a positive and progressive financial plan. While the Make in India initiative is leading to growth and investment opportunities leading to job creation, the steps outlined in the budget did definitely put India on the journey towards becoming a global manufacturing hub by 2022. Also, simplification in the tax regime helped in creating an investor-friendly environment.

Compiled by IESA Research

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