ELECTRONICS e-NEWSLETTER...Electronics e-Newsletter, Room No. 2280, Department of Electronics and Information Technology Ministry of Communications & Information Technology, Electronics

ELECTRONICS e-NEWSLETTER

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

Year 3 | Vol. 18: Apr 2013

GOVERNMENT OF INDIA Department of Electronics

and Information Technology (DeitY) Ministry of Communications & Information Technology

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

• Guidelines for EMC Scheme approved • MCIT’s Round Table on Dom. Mfd. Electronics Products • Japan-DeitY Joint working Group formed • Five Brownfield Electronic Manuf. Clusters (EMCs) notified

From Chief Editor’s Desk

Dear Readers,

The first few applications under Modified SIPS have been recommended by the Appraisal Committee. Within couple of months, the Appraisal Committee have considered these applications and made its recommendations, recommending incentives under the scheme. The Appraisal committee under the Chairmanship of Shri Rajiv Gauba, Additional Secretary, Department of Electronics and IT meets every week so that real-time response can be provided to all applicants. Department of Electronics and IT is trying to reach out to investors and other stakeholders. Workshops and meetings are held with potential investors. One company was surprised when the senior most officials of the Department reached their office to apprise them about the opportunities in the sector, rather than typically expecting them to go hunting for information. This reaching out to companies was not a single incident but a general approach being adopted. Country specific Desks, Country specific Electronic Manufacturing Clusters are also steps to meet the needs of potential investors. More needs to be done and we will strive in this direction. Responsiveness to requests for investment is critical to the success of the new policy initiatives. The Department will continue to make its endeavour to be as responsive as possible. Meanwhile, industry associations can also play an important role to play. They can act as extended arms of the Department. Very often, new investors reach out to these industry associations, and a knowledgeable response can make a world of difference in the final decision taken by the enquirer. I would like to encourage all industry associations which are in this sector to create a Help Desk for this purpose. We are waiting for your query. Please do not hesitate to ask.

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)

Sector

• Guidelines for Electronics Manufacturing Clusters (EMC) Scheme approved

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Guidelines for Electronics Manufacturing Clusters (EMC) Scheme approved

The EMC Scheme approved by Government provides for assistance for developing world class infrastructure and common facilities etc., for the ESDM units located within the Electronic Manufacturing Clusters. For Greenfield EMCs the assistance is restricted to 50% of the project cost subject to a ceiling of Rs. 50 Crores for every 100 acres of land. For larger areas, pro-rata ceiling would apply. For lower extent, the extent of support would be decided by the SCC subject to the ceiling of Rs. 50 Crores. The remaining project cost will be financed by other stakeholders of the EMC with a minimum contribution of 25% of the project cost from the units within the EMC. For Brownfield EMCs the assistance will be restricted to 75% of the project cost subject to a ceiling of Rs. 50 Crores. The remaining project cost will be financed by other stakeholders of the EMC with a minimum contribution of 15%, from the units within the EMC.

Guidelines for Electronics Manufacturing Clusters (EMC) Scheme have been released by DeitY on April 15, 2013. The Electronics Manufacturing Clusters (EMC) Scheme was notified vide Notification No.252 dated 22.10.2012 and in pursuance of paragraphs 2.2.3 and paragraph 7.2 of the Scheme, the guidelines have been issued for the implementation of the scheme. The guidelines are available at www.deity.gov.in/esdm.

The EMC scheme provides that each EMC shall have a separate SPV for implementation and management of the project. The constitution of SPV is to be as finalized by DeitY in consultation with Ministry of Finance.

The guidelines provide details regarding application to be made for seeking assistance under the EMC Scheme. Application Forms under are annexed as part of the Guidelines. An application can be made either by the SPV or by a “Chief Promoter” who undertakes to constitute the SPV as per the terms of the Scheme.

The salient features of the guidelines are as follows: i. It provides for a two stage approval process. Initially, a preliminary approval is provided which enables the applicant to

take further steps to finalize all details of the proposed project, including ownership of land, financial tie-up etc. Application forms for making a preliminary application as well as the final application are provided in the guidelines.

ii. It provides that an application for seeking assistance can be made by an SPV implementing the project or a “Chief Promoter”, who initiates the setting up of the project and subsequently constitutes the SPV for the operationalization of the project. Chief Promoter is defined as a legal entity which initiates the project, either in a Brownfield EMC or a Greenfield EMC, and takes steps as are necessary for getting the project approved, getting the SPV formed, and entrusting the project to the SPV, in accordance with the scheme and the guidelines.

iii. It provides for an indicative list of activities for which assistance is provided under the Scheme. However, it also provides that the applicant may propose any other activity as part of the Project, which would serve towards achieving the objective of the scheme.

iv. Cost of land and building of individual units of the EMC are not to be included in the cost of the project. v. Only projects seeking assistance of Rs 10 Crores are allowed under the Scheme vi. In a Greenfield EMC, 80% of the area is to be used for processing activities and 20% area may be allotted to non-

processing activities. vii. The investment by the electronics units should be at least four times the assistance sought under the EMC scheme. viii. 75% of the investment in the EMC should be related to units which are manufacturing electronic products. ix. The Government grant in processing area would be a maximum of 50% of the project and 20% in non-processing area. x. The administrative cost of the SPV would be restricted to 3% of the project cost. However, the Chief Promoter is not

eligible for the administrative costs. Cost of preparation of Detailed Project Report may be included as part of the administrative expenses. However, the expenditure on pay and allowances shall not form more than 25% of the grant for administrative expenses.

xi. A time limit of 6 months is provided to the SPV/Chief Promoter to make final application with full details, after the in-principle approval is granted. However, this time may be extended by SCC in best interest of the project.

xii. The final application can be made only after the land on which the project is proposed is in the possession of the applicant. Cost estimates of the project shall be made based on current CPWD schedule of rates. Formal sanction letter from the Bank is required before the final application.

… contd. on page 3

• EMC Guidelines ……… • Ambassadors Round Table on National Policy on Electronics … contd. from page 2.

xii. The guidelines also recognize landownership of the following types for the purpose of implementing the project: (a) land for the EMC and the project being owned by the applicant; and (b) land for project being owned by the applicant but the land for the EMC being owned by a different entity. In the latter, the applicant has to demonstrate the ability to satisfy the conditions regarding the EMC scheme and involving the units, like investment by units in the EMC, etc.

xiii. In the event of any Government or its agency being part of the SPV, the following conditions would additionally apply: (a) at least one representative of the State Government shall be part of the Board of Directors of the SPV and (b) Change in equity structure of the SPV would only be effected with the prior approval of the concerned State Government.

Full complete details of the guidelines, please refer to the original document.

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ELECTRONICS

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

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

Ambassadors Round Table on National Policy on Electronics organized

Hon’ble MCIT & Secretary DeitY at the event Delegates from Invited foreign mission in India Delegates from Invited foreign mission in India

An Ambassadors Round Table with Hon’ble Minister for Communications and Information Technology, Shri Kapil Sibal was organized by DeitY on April 22, 2013, at New Delhi to apprise invited delegates Ambassadors and Heads of Chambers of Commerce from Belgium, Finland, UK, US, Korea, Israel, Taiwan, Germany, Sweden, Japan about opportunities in ESDM sector in India and to invite companies from these countries to invest in ESDM sector in India. Shri J. Satyanarayana, Secretary, DeitY, Shri M.S. Farooqui, Secretary, DoT, Dr. Ajay Kumar, Joint Secretary, DeitY, Shri Ajai Chowdhry, Founder Member- HCL, Mr. Anirudh Dhoot, Director, Videocon Industries Ltd. also participated at the event.

The Minister briefed the audience about the policy initiatives like National Policy on Electronics, M-SIPS, EMC, etc. Hon’ble Minister appreciated the advancements made by these countries in the ESDM sector and emphasized that India’s capabilities in Embedded Design may be leveraged to set up additional manufacturing capabilities in this sector in India. He said that, “India is one of the biggest markets in the world and growing very fast and ESDM industry may like to explore ways to work together and create greater collaboration in the areas of trade, investments, human resource development and R&D. He invited cooperation in following areas:

Organizing trade delegations from these countries so that they can get familiar about the new opportunities in the sector and to participate in leading industrial events in the country.

Identify a nodal officer in respective Embassies in India to deal with enquiries relating to the electronics sector.

Create country-specific Desks to address investment issues relating to respective country, if there is adequate interest. One such Desk has already been set up for Japan.

Collaboration between Electronics Sector Skill Council and Telecom Sector Skills Council in India with their counterpart organizations from respective countries.

Set up Electronic Manufacturing Clusters which could provide specific social amenities for Korea, Japan and Taiwan, apart from providing industry specific infrastructure.

Collaboration in R&D and innovation in the field of electronics to develop products which would be customized to the needs of common man, particularly in the area of medical electronics, education, green energy and financial inclusion.

Shri Joon-gyu lee, Ambassador of Korea in India; Shri Alon Ushpiz, Ambassador of Israel in India; Shri C.K. Tien, Representative, Taipei Economic and Cultural Centre, New Delhi ; were among those who participated in the Round Table Discussion.

• TEC for Automotive Electronics • MCIT’s Round Table on Dom. Mfd. Electronics Products

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

Sector

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

Shri Kapil Sibal holds an Industry Round Table to discuss Policy for Domestically Manufactured Electronics Products

Hon’ble MCIT responding the queries Secretary, DeitY speaking at the event

A Round Table Discussion with Hon’ble Minister of Communication & Information Technology Shri Kapil Sibal on Domestically Manufactured Electronic Products was organized at New Delhi on April 9, 2013 at India Habitat Centre, New Delhi. Shri J. Satyanarayana, Secretary, DeitY welcomed the participants from the Government and industry and briefed about the agenda for the meeting. Shri M.F. Farooqui, Secretary, Telecom, Smt. Rita Teotia, Additional Secretary, Telecom and other officials were also present. The industry was represented by all leading industry associations and their representatives. Over 75 industry representatives participated in the discussions. Dr. Ajay Kumar, Joint Secretary, DeitY gave a presentation on salient features of policy on domestically manufactured electronic products and the draft guidelines. This was followed by interactive session. The general refrain of the views expressed that while there may be some operational difficulties relating to the policy, the policy was welcome measure and should be operationalized as soon as possible. Sh. J Satyanarayana, Secretary, DeitY summed up the discussions as under: a) Since there is consensus on PMA we may attempt to notify both the guidelines taking into consideration the suggestions made by the industry. b) A workshop may be organized with ministries/departments /agencies including I&B, Railways, Telecom, DGS&D, Power, NICSI, Atomic Energy and Health to create departments specific actions plans and timelines for notification of electronic products under PMA. c) A list of issues that need to be taken with Ministry of Finance may be prepared especially those relating to Inverted Duty structure. d) 5-6 verticals to be selected for priority treatment and vertical specific workshops may be organized with the concerned industry association to identify any gaps in the eco system and to prepare specific action plans for enhancing manufacturing environment in the identified verticals. e) There is a need for an interactive portal to address the concerns of the industry. A comprehensive portal needs to be designed which will meet the end-to-end requirement of ESDM. f) An Advisory Committee for resolving concerns/grievances of industry to be instituted.

Technical Evaluation Committee for Automotive Electronics Constituted

Technical Evaluation Committee (TEC) for Automotive Electronics segment under MSIPS Scheme has been constituted. The Committee includes Prof. Rajat Moona, DG-CDAC as Chairman and Dr. V. Ramgopal Rao, Institute Chair Professor, Dept. of Electrical Engg., IIT Bombay, Shri Amrutur Bharadwaj, Professor, IISc Bangalore, Shri. Shrikant R Marathe, Director, Automotive Research Association of India, Pune, Shri B. Ramani, Executive Director, C-DAC, Thiruvananthpuram and Shri. R.C. Meharde, Scientist C, DeitY as members. DeitY may nominate other experts as necessary to the Technical Evaluation Committee. A copy of the order constituting the TEC is available at www.deity.gov.in/esdm

The committee will provide recommendation regarding the technology proposed by an applicant and whether the said technology is ‘State- of -the –art’ or not as per para 8 of M-SIPS Guidelines. The committee will provide its advice on the submissions with respect to the scope as defined above, made to the committee by the DeitY. In the case of conflict of interest, it will be the responsibility of the members to inform the Chairman and withdraw himself/herself from the committee for that particular issue/case.

For detailed information on Government of India policies, please visit

Electronics System Design and

Manufacturing

page on

www.deity.gov.in

• Shri Kapil Sibal launches MSIPS Portal • Consultation for Setting Standards for STBs

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

Stakeholder Consultation for Setting up of Standards and Promotion of Manufacturing of Set Top Boxes

DeitY is taking steps to promote indigenous manufacturing of Set Top Box (STB) for DTH/Cable particularly in view of huge indigenous requirement on account of roadmap for digitalization of the broadcast sector. The Core Advisory Group for Research and Development (R&D) in the Electronics Hardware (CAREL), the empowered group formed under the auspices of the Office of the Principal Scientific Adviser has identified six products for design, development and manufacture indigenously and one of the products is Set Top Box.

As a result of these efforts, in the Budget 2013-14, basic customs duty on Set Top Boxes has been increased from 5 to 10 and the DGFT vide Public Notice No.51 (RE20 12)/2009-14 dated 5th March, 2013 has included Set Top Boxes [covered under ITC(HS) Code 85287100] under the Special Focus Product Scheme of the Foreign Trade Policy. Hence, Set Top Boxes are now entitled for Duty Credit Scrip equivalent to 5 of FOB value of exports. To facilitate design and development of domestic Set Top Boxes process of development of indigenous CAS is underway for development of an Indian CAS and an EoI has been floated regarding this.

In continuation of these steps, a meeting was convened under the Chairmanship of Secretary, DeitY on April 3, 2013 regarding development of technical standards for Set Top Boxes at the DeitY. Dr. Ajay Kumar, Joint Secretary, DeitY, Sh. Arun Sachdeva, Senior Director, DeitY, Shri N.E. Prasad, Director General, STQC, Ms. Asha Nangia, Scientist ‘E’, DeitY, Ms. Parul Singh, Consultant, DeitY, Shri P. Radhakrishna, Scientist ‘F’, Head (LITD), BIS, Shri Jitendar Kumar, Scientist ‘C’, BIS, Shri Ashok Kumar, Scientist ‘E’, STQC, Shri S.K. Singh, DGM Videocon Ind. Ltd., Shri Sunil Vachani, Director, Dixon, Mr. Amit Kharbanda, Executive Director, My Box, Shri Suresh Khanna, Secy. General CEAMA, Shri Ankan Biswas, CEAMA, Shri Asif Khan, Director Indieon Technologies, Shri Joy Kokkat, VP- Tech., Indieon Technologies, Pune, Shri Adnan Dhuliawala, AGM- Business Dev., Indieon Technologies Pune participated in the discussions.

Industry participants shared the need to develop STB which would address difficulties of wide power fluctuations in India, local language access and energy efficiency. Secretary, DeitY concluded that consumers’ interest need to be protected and the Department will evaluate the suggestions received and take appropriate action.

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

Sector

Shri Kapil Sibal launches MSIPS Portal

Hon’ble MCIT Launching the E-MSIPS Portal at DeitY

Union Communications and IT Minister Shri Kapil Sibal launched the Electronic System Design and Manufacturing Portal called “e-MSIPS” (www.msips.in) on March 25, 2013 in the presence of Shri J Satyanarayana, Secretary, DeitY, industry leaders and media and other officials. The portal provides an online platform for submitting applications under Modified Special Incentive Package Scheme (M-SIPS). The portal has been developed by the Department of Electronics and Information Technology, through the Centre for Development of Advanced Computing (C-DAC).

e-MSIPS is a web based system to support processes for online submission of applications under MSIPS, scrutiny of applications by experts, project grant recommendations and project monitoring. The e-MSIPS replaces the existing manual system of submission of MSIPS applications in hard copies to Nodal Officer which are processed in DeitY and presented to Appraisal Committee for approval of incentives. It is a One-Go Dash Board to see the project applications from initiation to completion. It incorporates features like PKI infrastructure to secure application, integrated communication model for seamless communication among relevant users and automated emailing system for various requests, alerts and reminders. e-MSIPS is expected to reduce total processing time of MSIPS applications. It would also aid easy dissemination of project information to users.

The further enhancements proposed for e-MSIPS include provision of online payment of fee, digital signature for applicants and other signatories in the application. Second phase of the e-MSIPS is expected to be completing in about three month’s time. All applicants & potential applicants of MSIPS are requested to make use of the e-MSIPS portal.

• Karnataka ESDM Policy 2013

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ELECTRONICS

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

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

Karnataka ESDM Policy 2013 Government of Karnataka has announced a Karnataka Electronic System Design and Manufacturing (ESDM) Policy 2013. Order NO.ITD 01 PRM 2013, dated March 8, 2013 of Government of Karnataka refers. The objective of the Policy is to facilitate, promote and develop the "ESDM" sector in the State of Karnataka and make Karnataka a preferred destination for investment in this sector. Some highlights of the policy are:

Objective

Emerge as the leading contributor to India's ESDM sector by accounting for at least 10% of the USD $400 billion by 2020,

Generate over 20% of the country's total ESDM exports target of USD $80 billion in 2020,

Develop core competencies in specific ESDM verticals such as telecom, defense electronics, avionics and energy

Make Karnataka the country's preferred destination for investments in ESDM,

Generate at least 240,000 new jobs, 25% of India's PhDs and 5000 patent filings in ESDM sector in Karnataka by 2020, and

Increase the value-addition that is done in Karnataka.

Incentives under the ESDM Policy

In line with the Government of India policy, Preferential Market Access shall be given to "Karnataka ESDM companies" for the ESDM products procured by all Government Departments of Karnataka. The year wise PMA and value addition thresholds for each product shall be in line with the National Policy on Electronics and the National Telecom Policy. This Policy shall be applicable from the date of notification and shall remain in force for a period of next 7 years.

Karnataka will set up three ESDM innovation centers that will provide complete infrastructure to entrepreneurs and companies who want to take their product concept and implement a working prototype. Such innovation centers will have all the requisite design tools such as VLSI design tools, prototype development facilities, testing facilities, characterization labs, compliance and certifications labs along with requisite manpower and component stocks. The first such center shall be housed at IIIT -Bangalore and subsequent centers will be setup in other parts of the state.

To stimulate the creation of Fabless Design companies and semiconductor IP, which will be needed in the ESDM sector, the Government will launch a Semiconductor IP and Fabless Fund that will provide funding to Karnataka ESDM companies for their startup, growth and debt/working capital needs in the next seven years. This fund will work closely with the ICT Innovation Fund and shall be jointly funded by the Government of Karnataka, Government of India and other Public/Private Financial Institutions.

The policy will support the development of 7 (seven) ESDM Manufacturing Clusters (EMC) in the State by 2020. The EMCs shall provide internal and external infrastructure, inclusive of advanced logistics, shared testing and training facilities. Support of Government of Karnataka for infrastructure development in EMCs shall not exceed 20% of the total infrastructure cost.

The Government will market Karnataka as an attractive ESDM center for the global investor audience and build a strong "Brand Karnataka" for ESDM. The State shall work with the external affairs ministry to conduct road shows for foreign ambassadors in Delhi, sign MoUs with identified "sister-cities" in other countries, and engage with the 50 top ESDM companies of the world to pro-actively invite investments into the state.

Government will promote innovation in the ESDM Sector through Awards by way of grants. The best innovations in the ESDM sector will be selected by the Screening Committee comprising of Industry and Academia representatives.

The target is to file 3000 domestic and 2000 international patents in ESDM by Karnataka ESDM Companies by 2020. The Government shall reimburse up to 50 of the actual costs (including filing fees, attorney fees, search fees, maintenance fees) with a maximum of Rs 100,000 for filing a domestic patent and up to Rs 500,000 for filing an international patent. This reimbursement shall be payable 75% after the patent is filed and the balance 25% after the patent has been granted. The patent filing incentives provided by Government of Karnataka shall be in addition to any existing scheme of Government of India.

For export promotion of ESDM products and building brand equity of Karnataka ESDM companies as credible players internationally, the Government shall provide reimbursements of 50% of the actual costs (including travel) incurred in international marketing, sales promotion, trade show participation, webinars, market research etc., by Karnataka ESDM companies. This reimbursement will be subject to a maximum of Rs 10 Lakhs per year per company.

… contd. On page 7

• BBNL invites tender for procuring OFC • Committee formed for DGS&D to follow PMA

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

Sector

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

… contd. From page 6 To overcome the large disability faced by the ESDM industry against global competitors, the Karnataka State Government

would formulate a 'Duty Drawback Scheme' in respect of the State Taxes that do not get refunded to the exporting units in the normal course of implementation of the State Tax Laws, and as a result get embedded in the exports. The guiding approach in formulation of such a scheme would be that the State Taxes do not get exported, as far as practical.

For sales within Karnataka of ESDM products, the ESDM Units will be eligible for an incentive in the form of interest free loan against the eligible gross VAT under the Industrial Policy 2009. For domestic sales outside Karnataka (inter-state sales), the State will reimburse 95 of Central Sales Tax, till GST is implemented, paid by the eligible ESDM units during the first 5 years of their operations.

The Karnataka Government shall give R&D grants in the form of reimbursement equaling upto 20% of the actual R&D expenses (including manpower costs) incurred annually by Karnataka ESDM Companies, subject to a maximum of 2% of their annual turnover. The R&D grant shall be subject to a maximum of Rs. 1 Crore per company per year and shall be in addition to any similar benefits announced by the Government of India.

To attract investments in ESDM sector, Government will provide upto 10% capital subsidy or Rs.5 Crores, whichever is lower to Karnataka ESDM companies (both for ESDM manufacturing as well as R&D units) and will be given to the first two Anchor Units in each Greenfield Cluster. This will act as a strong pull factor for investors to set up their ESDM design, R&D and/or high-tech manufacturing facilities within the State.

In addition to the above, fiscal incentives and concessions as per Karnataka Industrial Policy 2009-14 will be extended to ESDM units covered under this Policy

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

BBNL invites tender for procuring OFC from Indian Companies

Bharat Broadband Network Ltd. (BBNL) has issued a notice inviting tender (BBNL Tender No. BBNL/MM/2013/001) intending to procure approximately 404995 Kms of 24 Fibre Metal Free Optical Fibre Cable with double HOPE Sheath (G.652D) and accessories. The bidders should be Indian Companies registered to manufacture the tendered item in India and have obtained clearance from Reserve Bank of India, wherever applicable. Details regarding Type of equipment, Packages (for North Western India, Northern India, Central India, Western India, Southern India and East & North East India), eligibility criteria, date & time of submission of bid, etc., please refer to the tender document. The tender document for participating in E-tender shall be available for downloading from 3rd April 2013 at 17:00 Hrs onwards from https://www.tcil-india-electronictender.com. This link can also be visited from the website of BBNL- http://www.bbnl.nic.in , by clicking Link “Procurement Tender Notices” on the home page. Bharat Broadband Network Limited (BBNL) is a company set up under the Department of Telecommunications to oversee the implementation and roll out of the National Optical Fibre Network (NOFN) project, which is aimed at connecting approximately 2.5lakh Gram Panchyats by Optical Fibre Cable. Details are available at www.bbnl.nic.in under Procurement section.

Committee formed for DGS&D to follow Preferential Market Access (PMA)

Department of Commerce has constituted a committee for the implementation of the policy for domestically manufactured electronic products. The mandate Committee is to recommend the steps & methods of operationalization of the said policy in DGS&D for the public procurement of goods under DGS&D Rate Contracts.

The Committee includes Ms. Rita Teaotia, Additional Secretary, Dept. of Telecom as Chairperson and Dr. Ajay Kumar, Joint Secretary, DeitY, Shri S. K. Kataria, Addl. DG (QA), DGS&D, Shri V.P. Gupta, DDG (Supplies), DGS&D, Shri S.N. Srivastava, DDG (Supplies), DGS&D, Shri S. Bhardwaj, Director (QA-HQ), DGS&D and Shri Rajender Kumar, Director (IT), DGS&D as members. First meeting of the Committee was held on March 19, 2013 under the Chairmanship of Ms. Rita Teaotia, Addl. Secretary, DoT.

• Status of MSIPS Applications • TSSC signs MoU with Industry Skill Councils, Australia

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

Sector

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

Status of MSIPS Applications as on 25.4.2013

Status of applications received for setting up ESDM units in various ESDM sectors is as under (amount in INR Crores):

Sector Application Amount Financial Closure Furnished Status

Automotive Electronics 556 436 Recommended by Appraisal Committee

Hand held devices 406.2 406.2 Recommended by Appraisal Committee

Consumer Electronics 130 - Required information awaited from the applicant

Consumer Appliances 308 - Referred to Industry Advisory Committee

LED & PCB’s Assemblies - - Appraisal underway

Electronic PCB’s, Drivers 12.9 - Appraisal underway

Strategic Electronics 209.3 - Appraisal underway

Set Top Box 10.5 10 Appraisal underway

LED Products 204 - Appraisal underway

Telecom Sector Skills Council signs MoU with Industry Skill Councils, Australia

Telecom Sector Skills Council (TSSC) has informed that it has partnered with the Australian Industry Skill Councils (ISCs) – IBSA (Innovation & Business Skills Australia) & E-Oz Energy Skills Australia, under the aegis of the Australia India Education Council (AIEC) in the area of skill development. On the April 16, 2013, TSSC inked two MoUs with IBSA & E-Oz Australia in the presence of the Australian High Commissioner to India Mr Patrick Suckling and various other dignitaries. This project involves the exchange of experts from Australia to assist TSSC in achieving its key objectives including developing Occupational Standards, Labour Market System and Affiliation & Certification. The initial engagement will be for a period of 9 months culminating in a project report in December 2013 to the AIEC charting the long term collaboration. This exchange of information will help build skilled global workforces in Australia & India and will also facilitate increased regional mobility of labour, industry and increased opportunities for Vocational Training Providers in both the countries.

TSSC has also identified 26 maximum coverage job roles for the development of Occupational Standards and is engaging various Training Providers to initiate pilot projects. Currently, Occupational Standards for 10 job roles have been developed and the rest are to be completed by May, 2013. In addition, TSSC has also signed MoUs with 20 industry partners to ensure their participation in skill building activities and for acceptance of TSSC certified manpower for employment. To know more about TSSC, please visit www.tsscindia.com.

Screening Committee for Clusters Constituted

DeitY has constituted the Screening Committee for Clusters under the EMC Scheme. The mandate of the SCC is to consider all applications received under the EMC Scheme and to make recommendations to the Government for the assistance to be provided under the Scheme.

The SCC is chaired by the Secretary, Department of Electronics and IT. The other members of the SCC are Secretary, Planning Commission, Secretary, Department of Economic Affairs, Chairman, Railway Board, Secretary, Civil Aviation, Secretary, Telecommunication, Secretary, Science and Technology, Secretary, Commerce, Secretary, DIPP, Secretary, MSME, Secretary, Power, Secretary, Road Transport and Highways, Secretary, Urban Development, Financial Adviser, DeitY, Secretary of the Nodal Department of the concerned State Government, Representative of the Financial Institution concerned and Representative of the Academic Institute for the concerned EMC. Joint Secretary, DeitY is the Convenor of the SCC.

The constitution of the SCC is part of the guidelines issued by the Department of Electronics for operationalizing the EMC scheme. The guidelines are available at www.deity.gov.in/esdm

• Indian Imports of LCDs • Five Brownfield Electronic Manuf. Clusters (EMCs) notified

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ELECTRONICS

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

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

Five Brownfield Electronic Manuf. Clusters (EMCs) notified

Para 5.3 of the MSIPS Policy states that the assistance under the

scheme will be available to units set up within Electronic Manufacturing Clusters to be notified by the Department of Electronics and IT.

In furtherance of the said requirements, and with the objective of

making areas with significant electronics manufacturing activity take advantage of the incentives under the National Policy on Electronics, the Department has now notified five areas as Brownfield EMCs. Order no. 36(30)/2012-IPHW dated March 21, 2013 of the Department refers. A copy of the order is available at www.deity.gov.in/esdm. The Brownfield EMCs are:

S No.

State Brownfield Electronics Manufacturing Cluster for MSIPS, scheme

Cluster-ID

1 Karnataka Districts of Bengaluru, Bengaluru Rural, & Tumkur

KK-1

2 Mysore, District KK-2

3 Madhya Pradesh

Districts of Dewas, Indore, & Dhar MP-1

4 Bhopal, District MP-2

5 Uttar Pradesh Noida - Greater Noida, Development Authority areas

UP-1

These Brownfield EMCs are generic in nature and include all

verticals of ESDM. All units within the notified areas which are located within industrial estates, or an area approved by State/Central/local government or municipal authorities for industrial use will be eligible for MSIPS benefits. Separate projects for assistance under the EMC scheme can be prepared and application made for different verticals in these notified Brownfield EMCs. These applications would be considered as per the EMC scheme.

The process used for notifying Brownfield EMCs was as follows.

Extensive consultations were held with industry associations regarding areas which have extant electronics manufacturing activity. The list of areas so identified was sent to respective State Governments.

Based on the feedback received from State Governments

concerned, the aforesaid Brownfield EMCs have been notified with the approval of Minister of Communications and IT, Shri Kapil Sibal. The list does not reflect an exhaustive list of Brownfield EMCs and areas in other States are expected to be notified in due course.

Indian Imports of (HS Code 90138010)

Top 5 destinations for India’s Import of LCDs

2007-2008 2008-2009 2009-2010

HONG KONG CHINA CHINA

CHINA TAIWAN KOREA RP

AUSTRALIA HONG KONG AUSTRALIA

U S A JAPAN TAIWAN

TAIWAN HUNGARY HONG KONG

2010-2011 2011-2012 2012-2013 (Apr-Dec)

CHINA CHINA CHINA

KOREA RP KOREA RP KOREA RP

TAIWAN TAIWAN HONG KONG

HONG KONG HONG KONG TAIWAN

TURKEY U S A SINGAPORE

(Value in US$ Million)

Japan-DeitY Joint working Group formed for ESDM

As an result of the visit of Shri Kapil Sibal, Hon’ble Minister of Communications and IT to Japan in February 2013, a Joint Working Group (JWG) has been formed between India and Japan to promote investment in Electronics System Design and Manufacturing (ESDM) in India. The JWG is led by Dr. Ajay Kumar, Joint Secretary, Department of Electronics and IT on the Indian side. Shri Deepak Sharma, Additional Director, DeitY is the Convener. Other members include Joint Secretary, Software Development Group or nominee; DG, CDAC or nominee, Head Japan Desk; and industry representatives.

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

Electronics Niketan, 6, CGO Complex, New Delhi 110003

| Page 10

ELECTRONICS

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

Sector

• Indian Exports of LCDs • ELCINA Delegation to Taiwan

Indian Exports of (HS Code 90138010)

Top 5 destinations for India’s Export of LCDs

2007-2008 2008-2009 2009-2010

MALAYSIA AUSTRALIA CHINA P RP

U S A GERMANY KOREA RP

BELGIUM SAUDIARAB PHILIPPINES

AUSTRALIA SINGAPORE SWITZERLAND

NETHERLAND CHINA P RP BULGARIA

2010-2011 2011-2012 2012-2013 (Apr-Dec)

THAILAND KOREA RP INDONESIA

MALAYSIA CHINA P RP TAIWAN

KOREA RP MALAYSIA ISRAEL

TAIWAN NETHERLAND CHINA

GERMANY TAIWAN THAILAND

(Value in US$ Million)

ELCINA Delegation to Taiwan ELCINA organized an industry delegation to Taiwan from 8th to 12th April 2013 to coincide with Autotronics event at Taipei. The key objective of the visit was to facilitate the meetings with potential partners in Taiwan to enable business development between the two countries and to spread awareness about the National Electronics Policy and attract investments in the ESDM Sector. India-Taipei Association supported the event and helped ELCINA in organizing the meetings, particularly with top Associations of Taiwan, viz., TEEMA, TCA & PIDA. The delegation had detailed discussions with Portwell, Inc., a company focused on Industrial Computers; Everlight Electronics Co. Ltd., a famous Taiwanese Company is manufacturing LED products; Gigabyte, a famous manufacturer of motherboards for Computers and Industrial Technology Research Institute, an iconic research Institute in Taiwan. Taipei Computer Association (TCA) members informed that increasing costs of China have resulted in a situation where Taiwanese Companies are looking at India as a favourable destination for manufacturing and design. TCA expressed serious interest in expanding foot print of Taiwanese Companies in India, but emphasized that in addition to supportive policies investors needed supportive eco-system, policies and simple work procedures. TCA which has over 4000 Members representing hardware, software, semi-conductor and component manufacturers as their Members and TCA Members represent over 80% of total production value of Taiwan’s ICT Industry. Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA) had invited a number of Members who were interested for doing business with Indian Companies. TEEMA is the largest Electronics Manufacturer’s Association which in Taiwan and was established in 1948. It currently has 3000 plus Members. Photonics Industry & Technology Development Association (PIDA) is known as the Display Taiwan & Photonics Festival which comprises of LED Lighting Taiwan, Solar Taiwan & Optocomm Taiwan. PIDA also actively conducts research on LED sector and is a vibrant organization with great protocol for promoting investment in India. Mr. S K Marwah, Additional Director, DeitY, Mr. T Vasu, Director, Tandon Group, Mr. Parag Kirit Mehta, Director, Evolute Solutions Pvt Ltd., Mr. Amit Jain, Managing Director, Pushkar Controls Pvt Ltd., Mr. Dubier Stanley John, Managing Director, Stanesh Semiconductor Pvt Ltd., Mr. K Vijay Kumar Gupta, Managing Director, Quality Photonics Pvt. Ltd., Mr. J. K. Jain, Managing Director, FIEM Industries Limited, Mr. Ramesh Kumar Bansal, Head, Electronics, FIEM Industries Limited, Mr. Rajoo Goel, Secretary General, ELCINA Electronic Industries Association of India formed the visiting delegation.

Editorial Board

Chief Editor : Dr. Ajay Kumar, Jt. Secretary, DeitY Editor : Sh. Akhilesh Saurikhia, 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, Addl. Dir., 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