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11th Anniversary

Last Date for receiving Nomination for IESA Technovation Awards 2016 - Send your Nomination Now
Source: IESA, October 2016

Over the years IESA has been recognizing and awarding break-through innovation in the ESDM space during Technovation Awards, covering Industry and Academic circles. Due to lot of requests and in view of the large number of holidays this month, the last date for receiving nominations for Technovation Awards 2016 has been extended till November 25, 2016. Kindly send in your nominations before the final deadline of November 25, 2016. Nomination Form available on IESA Technovation Website. Click on the link for details

Looking at job creation in both services and manufacturing: Nirmala Sitharaman
Source: The Economic Times; November 19, 2016

There is an inexorable tide of technology which we cannot fight and we have to accept it. Therefore the challenge is within manufacturing. Do we see job creation happening despite this kind of automation and will these manufacturing jobs get created by merely feeding the demand from India? My sense is no. Non-linear growth in manufacturing will happen only if we plug ourselves to the global demand today.

If you look at it, there is no capacity constraint, there is no issue of supply constraint, India is getting all that it needs in terms of manufacturing goods. Indians are getting everything that they need. If we do therefore want to have a non-linear growth, that can happen only with the kind of new technologies that are coming particularly in the electronics and to some extent in defence.

We need to create a larger base of new sunrise industries which can get plugged into a global demand, create that ecosystem for us to create jobs. That is not easy.

Supriya Shrinate: Ms Sitharaman, growth is good only when there is job creation. Over the next two and a half years, I am presuming your focus will be to do that but some of the constraints that Mr Seshasayee pointed out or the challenges that Mr Mittal pointed out.

Hyderabad to deliver Apache helicopter fuselages in 2018 to US
Source: The Financial Express; November 19, 2016

The first consignment of Apache helicopter fuselages manufactured by the Hyderabad facility of Tata Boeing Aerospace Ltd (TBAL) will be delivered in 2018 to choppers that will be used by the US Army. The TBAL facility, a joint venture between the Tata Advanced Systems Ltd and Boeing, is expected to start operations next year.

Fuselage is the central body of an aircraft, to which the wings and tail assembly are attached and accommodates the crew, passengers, and cargo.

Apache is a twin engine multi-mission attack helicopter. India has ordered 15 heavy-lift helicopter Chinook and 22 Apaches, which are expected to be delivered in 2019.

More than 50 per cent of the Apache helicopters currently in operation are used by the US defence forces. “The building is being erected right now and we expect our first Apache fuselage to be delivered in the second quarter of 2018 for the US army.

“So, our strategy for this factory is not to only build fuselages for the Indian Apaches. The plan is to build them for every Apache from 2018 on wards in our factory in Hyderabad,” said Dave KooperSmith, Vice President, General Managar Vertical Lift of Boeing and board member of the TBAL.

“We are in the middle of negotiating over 240 aircraft for the US Army and 450 aircraft for all customers. From 2018 onwards all of those fuselages will be built in India,” said KooperSmith.

Policies will deliver infra, services thrust to aviation: Sinha
Source: The Hindu Business Line; November 20, 2016

The Centre is keen on ensuring that the aviation sector is equipped with adequate physical infrastructure and skilled human resources to face growth challenges over the next 15 years, Union Minister of State or Civil Aviation Jayant Sinha said here.

The aviation sector is expected to treble in size in the next ten years. Over 140 million people fly annually now and this is more than the estimated 130 million who travel by air-conditioned railway coaches, Sinha said, adding that there was huge headroom for growth.

The Centre is putting in place policies to establish multi-tiered infrastructure and quality services, the Union Minister said, addressing the third annual G Ramachandran Memorial Lecture, organised by the Southern India Chamber of Commerce & Industry on Saturday.

The recently-announced UDAN regional connectivity scheme for short-distance air services to connecting small towns with larger hubs will be in place early next year and is one element of the planned infrastructure. Airlines will now bid for these services, which will potentially bring into use over 17 under-served airports and 400 unused airports. Currently, there are 75 airports with scheduled services. The airlines will bid for viability gap funding, he said.

SEBI considers giving a fillip to start-up ecosystem
Source: Mint; November 21, 2016

Looking to provide an impetus to the early-stage start-up ecosystem, markets regulator Securities and Exchange Board of India (Sebi) plans to reduce minimum angel fund investment for venture capital undertakings to Rs25 lakh from the current Rs50 lakh.

Sebi may also allow the angel funds to make overseas investments up to 25% of their investible corpus, in line with other alternative investment funds (AIFs).

The move will make such funds to spread their risk by investing across geographies, officials said.

There are many start-ups that require a smaller amount of validating proposition and bringing down the limit to Rs25 lakh will help such companies raise funds at the initial stage of idea generations.

Also, the Sebi plans to align its definition of start-ups with other regulations.

As per Sebi guidelines, angel funds can invest in start-ups that have been incorporated during the preceding three years from the date of such investments. This may be changed to five years. Investment by an angel fund in a venture capital is locked in for three years. This is likely to be changed to one year.

There are plans to amend the upper limit of number of angel investors in a scheme to 200 from the current 49.

The board of Sebi is expected to discuss a proposal to make amendments to AIF regulations with respect to angel funds later this week, officials said.

Government should incentivize local manufacturing to push phone makers to move up the value chain: Study
Source: The Economic Times; November 21, 2016

The government should look at driving local value addition of components in mobile phone manufacturing, up to 30% in the next five years from present 6%, which will in turn help India become a manufacturing hub, as per a study from IIM Bangalore and research firm Counterpoint Research.

The report suggests that the next phase of Make in India, should be part of a phased manufacturing approach, as close to 1 billion smartphones and 500 million feature phones will be sold in the Indian market till 2021, involving consumption of mobile phone components worth $80 billion. The local value addition will also aid in reducing dependency on imports, the report released Monday revealed.

Aruna Sundararajan, Secretary, Ministry of Electronics & IT said that there was plenty of work ahead on fronts such as tariff regime, skill development, design knowledge and creation of strong infrastructure to aid the formation of electronics manufacturing clusters.

"India can potentially be world leader in mobile phone manufacturing ecosystem and this has to be done in a phased manner," she said, adding that the government would have to work with local industry and several partners to achieve this.

She also announced that the government was sending close to a 100 design engineers to Taiwan to learn important facets of aligning product design and customer needs from their Taiwanese counterparts.

Bosch launches programme for start-ups
Source: Domain B; November 21, 2016

Bosch India has launched an accelerator programme for start-ups, 'discover, nurture and align-DNA', with the company looking to work on technologies such as internet of things (IoT), deep learning, analytics, cloud, virtual reality and block chain among others.

The 18-week programme will provide a development, mentoring and piloting platform for start-ups, apart from offering start-ups the opportunity of gaining access to Bosch's working environment. Furthermore, start-ups will also be able to pitch to Bosch's management-Business Unit heads as well as other external investors.

''As a technology and solutions leader, Bosch India is looking to partner and collaborate with start-ups that work on disruptive solutions in the areas of mobility solutions, smart manufacturing, smart cities, meditech, agritech and energy,'' said Manohar Esarapu, head of Bosch India's Start-Up Alliance programme.

''Bosch is also looking to work with start-ups who could help build solutions in enabling technology areas such as, internet of things (IoT), deep learning, analytics, cloud, virtual reality and block chain.''

Phonemaker Micromax to start Make in India
Source: The Economic Times; November 22, 2016

Micromax Informatics is planning to make smartphones on a completely knocked down or CKD basis in India, by March next year, which could make it the first local manufacturer to take the plunge in the market where all but only Samsung is assembling phones.

"We're on the verge of importing our first set of CKD units," Micromax co-founder Vikas Jain said, adding that the company was looking at beginning before the end of the financial year.

"While we are working on logistics and building infrastructure, it will be at our new facilities either at Telangana or Bhiwadi," he said. The company is yet to decide the capacity of production from CKD units but is expecting its first shipment of CKD units soon.

The move will be a step up in value addition for the home-bred handset maker, which makes 3 million phones a month in Rudrapur and Telangana factories, more than half of which falls in the smartphone category.

The company's third plant is set to come up in Bhiwadi, Rajasthan, and the fourth one in Bhopal, Madhya Pradesh. An investment of Rs 2,000 crore has been marked out for making phones and electronics such as televisions, tablets and accessories locally, over the next five to six years.

At present almost all companies that sell phones in India, either import fully built units or semi-knocked down (SKD) phones from China, which can be assembled together with little manufacturing requirement.

India Inc's top bosses to sparkle 'Make in Odisha' meet
Source: Business Standard; November 22, 2016

The 'Make in Odisha' conclave touted as the state's biggest showcase event for investments, would witness the participation of some of the top honchos of India Inc. The event slated to be held between November 30 and December 2, has got the confirmation of the most sought after corporate names like Aditya Birla Group chairman Kumar Mangalam Birla, Adani Group chairman Gautam Adani, JSW Group chief Sajjan Jindal and Ashok P Hinduja, chairman of the Hinduja Group.

Confederation of Indian Industry (CII) which is partnering the Odisha government in the mega event, has released the list of 27 speakers. Those figure in the list are Arundhati Bhattachraya, chairman of State Bank of India (SBI), ITC's chief operating officer Sanjiv Puri, L&T's group executive chairman A M Naik, Vedanta Resources' chief executive officer Tom Albanese and S Mahalingam, executive director, Tata Consultancy Services (TCS).

The event is expected to see participation from key companies from across the country represented by their top officials. One of the key elements of the conclave is organiation of eight sectoral sessions on identified focus sectors of the state including Smart City, chemicals, petrochemicals and plastics, tourism, textiles & apparel, food processing, skill development, electronics manufacturing & IT and defence manufacturing.

Leading speakers from the industry and Government have confirmed participation in the sectoral sessions where the policy ecosystem, business potential of the specific sector and investment opportunities in the sector along with the outlook for the sector shall be discussed and deliberated.

Gujarat’s Ambitious Target to attract $1 Billion in Aerospace and Defence
Source: Bloomberg Quint; November 22, 2016

After falling behind states like Telangana and Andhra Pradesh in the ease of doing business ranking, Gujarat is looking to take a leaf out of their books and attract investments in the aerospace and defence sector. The state government is set to notify the new Aerospace and Defence Manufacturing Policy 2016 ahead of the eighth Vibrant Gujarat Summit to be held in January 2017.

“We are finalising policies on defence and aerospace. All facilities required for defence and aerospace will be provided to them (companies). There has been a relaxation in foreign direct investment norms for defence, and foreign companies would require connectivity. Gujarat has ports, that is a big plus point, and they can export and import from there.

We are forming policies based on those strengths,” Gujarat Chief Minister Vijay Ropani told BloombergQuint on the sidelines of the Vibrant Gujarat roadshow in Mumbai.

The policy seeks to attract more than Rs 5,000 crore over the next five years from global or Indian-origin equipment manufacturers in defence and aerospace. The Gujarat government said incentives on mega aerospace and defence (A&D) units will apply on the first two units on a first-come, first-served basis.

Among the objectives of this policy, the state seeks to, attract 10 percent of the value of all defence contracts in India in the next five years, attract five mega aerospace and defence (A&D) companies who will invest at least Rs 1,000 crore each over the next five years, attract 10 percent of all fresh offset development and manufacturing value chain.

Defence contracts worth nearly Rs 72,000 crore signed till October
Source: The Economic times; November 22, 2016

India has signed defence contracts worth nearly Rs 72,000 crore with foreign vendors, parliament was told on Tuesday.

"During the current financial year (up to October), 15 contracts with value of Rs 71,953 crore have been signed with foreign vendors including those from France, US, Russia, Israel, UK, and Germany for capital procurement of various defence equipment including aircraft, missiles and ammunition," Minister of State for Defence Subhash Bhamre told the Rajya Sabha in a written reply.

During the last financial year, the ministry has signed 17 contracts with value of Rs 29,171 crore, he added.

Demonetisation: 86 per cent startups give thumbs up to Modi's move
Source: India Today; November 22, 2016

While the opposition parties continue to create ruckus in Parliament over demonetisation and rural India continues to reel under cash crisis, the government move has received a big thumbs up from startups. In a survey conducted by social engagement platform, LocalCircles, a vast majority of startup firms have termed the demonetisation decision by the Modi government a positive step in long-term.

Of 4,514 startup firms, 86 per cent hailed the demonetisation decision saying that it would have positive impact on start up business in particular and Indian economy in general. 44 per cent of the respondents said that the Modi government's decision would yield positive results in both short and long-term.

But, 42 per cent others believe that demonetisation has brought short-term negative impact but long-term impact will be positive.

13 per cent of the participants in the survey didn't find any merit in demonetisation move, which, they said, would have negative impact in both short and long-term.

Interestingly, only 14 per cent startups reported that their business has improved since demonetisation; 28 per cent said that their business has taken a beating after the sudden decision of the government.

A maximum of 33 per cent of 4,579 respondents, however, reported no recognisable impact of demonetisation.

Less availability of cash in the market has adversely affected the customer transactions for the startups. The LocalCircles survey showed 34 per cent startups had negative customer transactions since demonetisation.

K'taka to usher new era in IT with Bengaluru 2016
Source: Web India 123; November 23, 2016

Elevating itself to a new level, the 19thedition of India's flagship IT and Electronics 2016 to be held here from November 28 will focus on advanced technologies and new areas for which the high tech city provided the necessary skill sets.

The three-day event, with the theme 'Define the Next' would focus on Artificial Intelligence, IoT, Robotics, Big Data, Virtual Reality(VR) and Augmented Reality (AR), Electronics System Design, Animation, Visual Effects and Gaming, Apps Development, Startups, and Entrepreneurship Development both in the conference sessions as well as in the exhibition.

The event is moving back to the Bengaluru Palace and is expected to be bigger, better and a lot more engaging, according to an official statement. It is being organized by the Department of Information Technology, Biotechnology and Science and Technology, Government of Karnataka, in association with Software Technology Parks of India (STPI) Bengaluru, with the support of reputed National Industry associations like NASSCOM, IESA, TIE and ABAI.

For the first time, Science Gallery, Bengaluru would be exhibiting on the theme, 'The Entanglement-a dance between Art and Science'in the exhibition arena of the event.

The keynote speakers include Bhaskar Ghosh, Group Chief Executive, Accenture Technology Services, Anant Maheshwari, President, Microsoft India, Mr. Kunal Shah, Founder and CEO, FreeCharge, Ms Nivruti Rai, GM, India and VP, Intel Corporation.

Niti Aayog to go beyond traditional areas of planning
Source: The Economic Times; November 23, 2016

Government today said Niti Aayog will broaden its purview to go beyond the traditional areas of planning and look at internal security, defence, social and development goals.

"Niti Aayog has initiated an exercise to formulate vision and strategy for the period beyond the 12th Five Year Plan (which ends in March 2017)," Minister of State for Urban Development and Planning Rao Inderjit Singh said in a written reply to the Lok Sabha.

The Minister was replying to a query whether Niti Aayog will go beyond the traditional areas of plan and look at internal security, defence, social and development goals.

Singh said Niti Aayog will prepare three inter-connected documents, with differing time horizons.

The Aayog will prepare a vision document keeping in view the social goals set and / or proposed and sustainable development goals (SDGs) for about 15 years i.e. up to 2030 which is co-terminus with the period to achieve SDGs.

It will also prepare a seven-year strategy from 2017-18 to 2023-24 to convert the long-term vision into implementable policy and action as a part of "National Development Agenda" with a mid-term review after 3 years i.e. the year ending March 2020.

Besides, the government think tank will also prepare a three-year Action document for 2017-18 to 2019-20 aligned to the predictability of financial resources during the 14th Finance Commission Award period to help translate into actions the goals of the government to be achieved by 2019.

India market: Handset shipments to reach 265 million units in 2016, says firm
Source: Digitimes; November 23, 2016

Shipments of mobile handsets in the India market are expected to reach 265 million units in 2016, with smartphones accounting for 116 million units or 43.8%, according to Cyber Media Research (CMR).

Handset shipments in India reached 78.4 million units in the third quarter of 2016, bringing total shipments for the first three quarters of the year to 198 million units, CMR said.

Samsung Electronics was the top handset vendor with a 32.1% share in the third quarter, followed by Lenovo with a 14.6% share.

Meanwhile, locally made handsets accounted for 66% of total handsets shipped in India in the third quarter, said the research firm.

‘Electronic common facility centre at VIT’
Source: News today; November 24, 2016

Inaugurating a joint promotion programme in the light of Union government’s National Policy of Electronics organised by Confederation of Indian Industry and Southern India Electronic Industries chamber (SIEIC) at VIT Campus, he said, nearly 15 electronic industries have joined this proposed centre.

Selvam said the proposed centre would be established in VIT, situated in between Chennai and Bangaluru, an electronic city.

As Vellore had been declared one among the smart cities across the country, the city would develop faster, he added. "Electronic industries must utilize 75 per cent of financial assistance extended by the Government of India for establishing industries involved in electronic sector," Selvam said.

SIEIC member Manickam welcomed the gathering and president Nagarajan presided over the function.

CII deputy director Venkatraman, IESA president Vidyashankar and representatives from Bangaluru, Aurangabad and across the country participated.

Telecom sector likely to create 12 million jobs in five years
Source: The Economic Times; November 25, 2016

The telecom sector is likely to drive employment beyond the government’s estimate of 8.3 million jobs in the next five years in the wake of the Digital India initiative, a top industry skills group executive said.

“The ongoing Digital India programme including Smart City and Make in India initiatives are likely to help the telecom sector create 11 to 12 million job opportunities in the next five years, primarily in the services segment,” Telecom Sector Skill Council (TSSC) chief executive Lt Gen (Retd) SP Kochhar told ET.

TSSC — a joint initiative of the government and the private sector — is supported by the National Skill Development Council (NSDC), Department of Electronics and IT (DeitY) and lobby groups such as the Cellular Operators Association of India (COAI) and the Association of Unified Service Providers Association of India (AUSPI).

Kochhar, however, said that the sector’s non-manufacturing and manufacturing segments could bring as many as 7 million and 5 million work opportunities to the Indian youth respectively, driven by telecom infrastructure-led schemes which is much higher to the earlier estimation.

Compiled by IESA Research

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