“We may expect a few more clusters getting approved in August”

Dr. Ajay Kumarjoint secretary, DeitY

Dr. Ajay Kumar
joint secretary, DeitY

July 2013 The month of July was very special. It saw several new landmarks from the Electronics System design and Manufacturing perspective. It saw the first three approvals under the Modified Special Incentive Package Scheme (Modified SIPS) being handed over.

It saw the in-principle approvals to three Greenfield Electronic Manufacturing Clusters in the country being approved by the Steering Committee for Clusters.

It also saw the Compulsory Registration Order come into effect on July 3, 2013. The export incentives have become available for several new electronics products.

The Modified SIPS approval went to celebrated electronics companies like Samsung, Bosch and also to a MSME unit in Noida. This is the beginning and more may be expected in coming months. The next Appraisal Committee meeting is scheduled on Aug 6, 2013.

Two of the three in-principle approval for Greenfield Electronic Manufacturing Clusters (EMCs) went to State Government led Industrial Development Corporation, namely the Andhra Pradesh Industrial Infrastructure Corporation and one to GMR for their proposed EMC in Hosur.

All the three applicants have three months to work and finalize their Detailed Project Report, mobilize investments for their respective EMCs for final approvals. These EMCs have potential of becoming new hubs of

Electronics activity in the country. With the next meeting of the Steering Committee Clusters proposed in August end, we may expect a few more clusters getting approved in August.

The Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012, also abridged as the Compulsory Registration Order formally came into effect on July 3, 2013 marking a historic change in standards for electronic sector in the country.

While the numbers of registrations are slow, with only about 8 registration numbers, DeitY decision to allow breathing time of three months allowed units which had already sent their samples to accredited labs for testing, to get authorization letters to act as provisional registrations. Compliments for DeitY for having launched the scheme successfully.

The extension of Focus Products Scheme for several new electronics products during the month was icing on the cake. The expansion of electronics products in the Focus Product Scheme under the Foreign Trade Policy by the Department of Commerce is really welcome. Compliments to the Department of Commerce and the DGFT for recognizing the need.

As we move on to August, 2013, the big question is can every month be as special as July 2013 was for the Electronics sector!!

Dr. Ajay Kumar is also the chief editor of DietY’s electronic e-newsletter from where this article has been extracted.

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