06212018Headline:

PMA Notification for LED Products

The Government has notified the policy for providing preference to domestically manufactured electronic products in procurement due to security considerations and in Government procurement.

2. As per Clause 2.2.2. the Policy is applicable for procurement by all Ministries/Departments (except Defence) and their agencies for electronic products purchased for Governmental purposes and not with a view to commercial resale or with a view to use in the production of goods for commercial sale.

3. A Light Emitting Diode (LED) is an electronic device, which is essentially a PIN junction opto-semiconductor that emits light when operated in a forward biased direction, LEDs convert electrical energy into light energy, Their applications encompass Illumination, Displays, Indicators, Back Lighting, Signage. Signalling, Mobile, Automotive, etc. Since LED products cut across sectors. they have been classified as generic electronic products in terms of the aforesaid policy.

4. In furtherance of the Policy notified vide reference cited above the Department of Electronics and Information Technology (Deity) hereby notifies that preference shall be provided by all Ministries/Departments (except Defence) and agencies under their control to domestically manufactured LED Products as per the said policy. The details are as follows: LED Products

(A) Definition:

For the purpose of this Notification, LED products are those whose function is to utilize light produced by LEDs and spanning applications in the areas of: (i) Illumination. (ii) Optical Displays including True LED TVs. (iii) Back lighting, (iv) Signalling & Indication and (v ) Transportation.

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(C) Criteria for BOM to be classified as domestic:

The domestic BOM of LED Products would be the sum of the cost of main inputs as specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in Column 2 of the table. However, the weightage of total cost of (d) Heat Sink or Thermal Management Solutions. (e) Secondary Optics and (f) System Fixture and Fitting shall not exceed 20% of the domestic BOM of the LED Product:

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5. For reasons to be recorded in writing, a Government Ministry Department or agencies under their administrative control may choose to procure a higher percentage of domestically manufactured goods than specified in the Notification. This would enable Ministries Departments such as Atomic Energy, Space, Home Affairs etc. to meet their special requirements or wherever a special policy provision exists / decision is taken by the Government to meet the demand from domestic manufacturers.

6. The notification comes into effect immediately. The Year I for the purpose of this notification would be up to 31.3.2014.

7. The domestic value addition for Year 2 on wards shall automatically increase by 5% in terms of Policy referred to as above.

8, The Department may review the Notification in case of technology manufacturing eco-system evolving differently from the one envisaged for this Notification.

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