The Economic Times: January, 2015
New Delhi: The government expects investment proposals in electronics manufacturing to "more than double" in the two years to 2017-18, a top official told ET, giving a push to the government's 'Make in India' initiative.
Of 54 proposals received, the Centre has approved 30 requests entailing investments of Rs 6,000 crore, while 24 are in an "advanced stage" and are likely to be cleared before the end of this financial year, Ajay Kumar, joint secretary in the Department of Electronics & IT, told ET.
"For 2015-16, the government has received Rs 18,000 crore investment plans. We expect this investment to more than double in two years as we are taking good policy steps that include rationalisation of taxes," Kumar said.
The government, which plans to cut net imports of electronics to zero by 2020, is offering sops such as payback of up to 25% of capital expenditure to attract investments in electronics manufacturing. Incentives are available for a range of products including telecom, IT hardware, consumer electronics and semiconductor chips and chip components.
The government is facilitating speedy clearances to attract new proposals and has disbursed subsidies under the Modified Special Incentive Package Scheme for 2013-14.
Kumar said companies without offices in the country are now looking at India as a strategic location and firms in other businesses are considering a foray into electronics to take advantage of the policies.
South Korean electronics major Samsung and Germany's Bosch are readying for another round of investments under the incentive package, the official said.
Bosch Automotive invested Rs 550 crore in 2013 to manufacture electronic control units, while Samsung pumped in Rs 400 crore in device manufacturing and later won approval to spend Rs 350 crore in its electronics facility in India.
Telecom and IT minister Ravi Shankar Prasad met business leaders on his recent visits to South Korea and Germany and encouraged them to invest in the 'Make in India' and Digital India programmes.