Electronics Production | July 05, 2012
India to support Electronic Manufacturing Clusters
The Government of India approved a proposal yesterday to offer financial support for the development of Electronics Manufacturing Clusters (EMCs).
The proposal is designed to support the country's draft National Policy on Electronics (NPE) aimed at achieving a domestic production of about 400 billion USD by 2020 in the ESDM sector. The proposed EMCs scheme would support setting up of both Greenfield and Brownfield EMCs. The main features of the proposed EMC scheme, outlined in a release by the Government, are as follows: (i) The assistance would be provided to a Special Purpose Vehicle (SPV) which should be a legal entity duly registered for this purpose. The SPV may be promoted by private companies, industry associations, financial institutions, R&D institutions, State or Local governments or their agencies and units within the EMC. The SPV should consider including an academic/research institution to be part of the proposed SPV for suitable academic-industry linkages. (ii) The financial assistance to the SPV shall be in the form of grant-in-aid only. For Greenfield EMCs the assistance will be restricted to 50% of the project cost subject to a ceiling of Rs. 50 crore for every 100 acres of land. For Brownfield EMCs the assistance will be restricted to 75% of the project cost subject to a ceiling of Rs. 50 crore. (iii) The scheme will be open for applications for five years from the date of notification. (iv) This is a policy decision with no automatic financial commitment. The financial assistance under the policy would be subject to approval by the Competent Authority following due process.