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Government open to NPE amendments

Posted on Jan 24, 02:55PM | IBNS

To achieve an investment of USUSD 100 billion, the government is open for amendments in the National Policy on Electronics (NPE), said Ajay Kumar, Joint Secretary, Department of Electronics and Information Technology, Ministry of Communication and Information. Inaugurating the ASSOCHAM round table discussion on "Electronics Manufacturing Industry", Kumar said electronics design and manufacturing industry to meet the country's needs and serve the international market, the National Policy on Electronics (NPE) has set up goals for 2020 to create an employment of 28 million, enhance exports from USUSD 8 billion to USUSD 80 billion and grow the chip embedded software industry.

Kumar said that cabinet has approved providing Digital Addressable System (DAS) throughout country by December 2014. "The projected Market for Set Top Box in next 3-5 years is 200 Million units."

Kumar further mentioned that size of medical electronics equipment market is USUSD 6.5 Billion by 2020 and the Government of India (GoI) committed to develop affordable medical electronic device industry.

The proposed size for Electronics Development Fund (EDF) is Rs. 10,000 crore (USUSD 2 Billion) to promote Innovation and IP and R and D, product commercialization, etc in ESDM, nano-electronics and IT sectors, comprises of "Daughter Funds" of size USUSD 20 Million -100 Million and each fund to have Government share from 25pc - 75pc ; remaining from private and financial institutions, he said.

Kumar also stressed on human resource (HR) initiative to set up electronics Sector Skill Council, telecom Sector Skill Council and Fellowship support for 1500 PhD students in ESDM-scheme under approval. He also said that ICT and Electronics Academies-Scheme under approval and skill development for 1 million persons under formulation.

ASSOCHAM said it strongly believes that National Policy on Electronics, 2012 will go a long way in extenuating the disability costs in ICTE manufacturing.

"It would definitely help in making the industry more competitive, attract new investments, generate employment, create additional revenues and lead to lesser dependence on Imports," said Anirudh Dhoot, Chairman, ASSOCHAM National Council on Electronics and Director, Videocon Industries Ltd.

"ASSOCHAM has been campaigning to support Electronics Manufacturing Clusters (EMCs) thereby making ICTE manufacturing more competitive. The cluster concept imparts certain inherent natural manufacturing advantages of agglomeration and scale, bringing together required infrastructure, skills, and supporting institutions," said Dhoot.

The EMCs have potential advantages like increased productivity of the companies in the cluster, driving innovation, cutting down unproductive costs and reduction of costs through shared resources, said Dhoot.

J.V. Ramamurthy, Co-Chairman, ASSOCHAM National Council on Electronics and President and Chief Operating Officer, HCL Infosystems Ltd, said countries with robust ICTE manufacturing bases such as China, Korea, Taiwan, etc, have systematically built excellent physical infrastructure with user friendly and simple policy framework and approval mechanisms.

"Low cost of funds, reasonable tax rates and tremendous government support has encouraged its growth overseas," he said.

Tamaki Tsukada, Minister Economics, Embassy of Japan said that standard and regulation should be encouraged not penalized, encourage innovation and healthy competition.

He also said that discussion is on for Industrial park with interested states and SEZ developers to form a "Japanese Industrial cluster".