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ELECTRONICS

Big Boost

The Electronics Manufacturing Clusters (EMC 2.0) Scheme will help offset the
disability for domestic manufacturing of electronic components and semiconductors
in order to strengthen the electronic manufacturing ecosystem in the country.

he Union Cabinet chaired ics Sector to the tune of at leastRs.
by Prime Minister Naren- 20,000 crore.
dra Modi has approved to Direct employment of approxi-
Toffer financial incentive of mately 1,50,000 is expected to be
25 percent of capital expenditure created in the manufacturing units
for the manufacturing of goods that supported under the scheme, includ-
constitute the supply chain of an ing indirect employment of about
electronic product under the Scheme three times of direct employment as
for Promotion of manufacturing of tive expense to the tune of Rs.32 per industry estimates. Thus, total
Electronic Components and Semi- crore. employment potential of the scheme
conductors (SPECS). The Benefits: The proposal when imple- is approximately 6,00,000.
scheme will help offset the disability mented will lead to the development Reducing dependence on im-
for domestic manufacturing of elec- of electronic components manu- port of components by large scale
tronic components and semiconduc- facturing ecosystem in the country. domestic manufacturing that will
tors in order to strengthen the elec- Following are the expected outputs/ also enhance the digital security of
tronic manufacturing ecosystem in outcomes in terms of measurable in- the nation.
the country. dicators for the scheme: Background: The vision of National
Financial Implications: The total Development of electronic com- Policy on Electronics 2019 (NPE
cost of the scheme is approximately ponents manufacturing ecosystem in 2019) notified on 25.02.2019 is
Rs.3,285 crore, which includes the the country and deepening of Elec- to position India as a global hub
incentive outlay of approximately tronics value chain. for Electronics System Design and
Rs.3,252 crore and the administra- New investments in Electron- Manufacturing (ESDM) by encour-
aging and driving capabilities in the
Green Signal for EMC 2.0 country for developing core compo-
nents, including, chipsets, and creat-
The Union Cabinet chaired by Prime Minister ing an enabling environment for the
industry to compete globally.
Narendra Modi has also approved financial assistance to the A vibrant electronic components
Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme manufacturing ecosystem is vital for
for development of world class infrastructure along with common the overall long-term and sustainable
facilities and amenities through Electronics Manufacturing Clusters growth of electronics manufacturing
(EMCs). It is expected that these EMCs would aid the growth of in India and essential to achieve net
the ESDM sector, help development of entrepreneurial ecosystem, positive Balance of Payments (BoP).
drive innovation and catalyze the economic growth of the region It is, therefore proposed to
by attracting investments in the sector, increasing employment provide an incentive of 25 percent
opportunities and tax revenues. on capital expenditure on plant,
The EMC 2.0 Scheme would support setting up of both Electronics machinery, equipment, associated
Manufacturing Clusters (EMCs) and Common Facility Centers utilities and technology, including
(CFCs). For the purpose of this Scheme, an EMC would be set up in for Research & Development to the
geographical areas of certain minimum extent, preferably contiguous, industrial units making investment The Economic Times POLYMERS | April-May 2020
where the focus is on development of basic infrastructure, amenities for manufacturing of electronic
and other common facilities for the ESDM units. For a CFC, there components, semiconductors,
should be a significant number of existing ESDM units located in the ATMP, specialized sub-assemblies
area and the focus is on upgrading common technical infrastructure and capital goods for these items,
and providing common facilities for the ESDM units in such EMCs, in the specified categories. This will
Industrial Areas/Parks/industrial corridors. cater to all segments of electronics
manufacturing.

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