TelecomLive April-2020

India as Electronics Hub www.telecomlive.com 15 Telecom LIVE April 2020 Scheme for the development of world class infrastructure along with common facilities and ame- nities through Electronics Manu- facturing Clusters (EMCs). The financial assistance also includes administrative and management expense to the tune of Rs 37 crore over a period of 8 years. It is expected that these EMCs would aid the growth of the ESDM sector, help development of entre- preneurial ecosystem, drive inno- vation and catalyze the economic growth of the region by attracting investments in the sector, increas- ing employment opportunities and tax revenues. The EMC 2.0 Scheme would support setting up of both Elec- tronics Manufacturing Clusters (EMCs) and Common Facility Centers (CFCs). For the purpose of this Scheme, an EMC would be set up in geographical areas of certain minimum extent, prefera- bly contiguous, where the focus is on development of basic infra- structure, amenities and other common facilities for the Elec- tronics System Design and Manu- facturing (ESDM) units. For CFC, there should be a significant num- ber of existing ESDM units located in the area and the focus is on upgrading common technical infrastructure and providing com- mon facilities for the ESDM units in such EMCs, Industrial Areas / Parks / industrial corridors. The Scheme will create a robust infrastructure base for electronic industry to attract flow of invest- ment in ESDM sector and lead to greater employment opportuni- ties. Following are the expected outputs / outcomes from the Scheme: a. Availability of ready infra- structure and Plug & Play facility for attracting invest- ment in electronics sector b. New investment in electronics sector c. Jobs creation in the manufac- turing units d. Revenue in the form of taxes paid by the manufacturing units Scheme for Promotion of manufacturing of Electronic Components and Semicon- ductors Under this scheme, the govern- ment has approved to offer finan- cial incentive of 25 per cent of capital expenditure for the manu- facturing of goods that constitute the supply chain of an electronic product under the Scheme for Promotion of manufacturing of Electronic Components and Semi- conductors (SPECS). The total cost of the scheme is Rs 3,285 crore, which includes incentive outlay of Rs 3,252 crore and the administrative expense to the tune of Rs 32 crore. The scheme will help offset the disability for domestic manufac- turing of electronic components and semiconductors in order to strengthen the electronic manu- facturing ecosystem in the coun- try. The proposal when imple- mented will lead to the develop- ment of electronic components manufacturing ecosystem in the country. Following are the expected outputs / outcomes in terms of measurable indicators from the scheme: a. Development of electronic components manufacturing ecosystem in the country and deepening of electronics value chain. b. New investments in electron- ics sector to the tune of at least Rs 20,000 crore. c. Direct employment of approx- imately 150,000 is expected to be created in the manufactur- ing units supported under the scheme, including indirect employment of about three times of direct employment as per industry estimates. Thus, total employment potential of the scheme is approximately 600,000. d. Reducing dependence on import of components by large scale domestic manufac- turing that will also enhance the digital security of the nation. to create 800,000 direct and indi- rect jobs. Production Linked Incentive Scheme for Large Scale Elec- tronics Manufacturing The scheme proposes produc- tion linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components including Assembly, Testing, Marking and Packaging (ATMP) units. Under the scheme, electronic manufacturing companies will get an incentive of 4 to 6 per cent on incremental sales (over base year) of goods manufactured in India and covered under target seg- ments, to eligible companies over a period of next 5 years. The scheme is likely to benefit 5-6 major global players and few domestic champions, in the field of mobile manufacturing and Specified Electronics Components and bring in large scale electronics manufacturing in India. The total cost of the scheme is approximately Rs 40,995 crore which includes an incentive outlay of Rs 40,951 crore and adminis- trative expenses to the tune of Rs 44 crore. According to the government, this scheme has a direct employ- ment generation potential of over 200,000 jobs over 5 years. How- ever, it is expected that the scheme would lead to large scale electronics manufacturing in the country and open tremendous employment opportunities. Indi- rect employment will be about 3 times of direct employment as per industry estimates. Thus, total employment potential of the scheme is approximately 800,000. Modified Electronics Manu- facturing Clusters (EMC 2.0) Scheme A financial assistance of Rs 3,762 crore has been approved for the Modified Electronics Manu- facturing Clusters (EMC 2.0)