New Delhi, March 30 The government on Monday approved the fourth tranche of 29 proposals under the Electronics Components Manufacturing Scheme with a projected investment of Rs 7,104 crore, with IT Minister Ashwini Vaishnaw stressing that the industry must build in-house design capabilities and adopt Six Sigma quality standards to avail future support and incentives.
The latest tranche includes approval for the Rare Earth Permanent Magnet facility by Lohum Cleantech, entailing an investment of Rs 700 crore.
This project, slated to come up in Uttar Pradesh, is the first related to the manufacturing of Rare Earth Permanent Magnets from rare earth oxide and marks a significant step towards the development of indigenous capabilities in advanced materials.
With a projected investment of Rs 7,104 crore, the 29 approvals are expected to generate direct employment opportunities for 14,246 people.
The set of projects – just approved – includes the manufacturing of 16 products, which have cross-sectoral applications, such as mobile manufacturing, telecom, consumer electronics, strategic electronics, automotive and IT hardware products.
The proposal includes one project in the category of Display Modules, 11 in Antennas, Capacitors, Connectors, Heat Sinks, Li-ion Cells, Relays, Resistors, Transducers, SMD Passives, Flexible PCB and Inductors; and three supply chain items (Laminates, Metallised films for Capacitors and Rare Earth Permanent Magnets, Capital Goods and their parts).
With these approvals, a total of 75 applications have been cleared under the Electronics Components Manufacturing Scheme (ECMS), amounting to an expected investment of Rs 61,671 crore and direct employment for 65,040 persons.
Taken together with previous ECMS tranches and ongoing semiconductor initiatives, the latest clearances underline India's firm resolve to emerge as a major hub in global electronics supply chains, particularly in the backdrop of the turbulent geopolitical situation.
It would also reduce India's import dependence for critical electronic components and accelerate the build-out of high-value manufacturing capabilities in the country.
In the sub-assembly category, approvals for the manufacturing of display modules have been granted to Dixon Display Technologies and Wangda Technologies.
The list includes approval to VVDN Technologies (for antenna and Heat Sink), and for Connectors to Molex (India), Terminal Technologies, SFO Technologies India and Amphenol FCI India. Other projects include that of Munoth Lithium Battery (Li-ion cell for digital applications); Vishay Precision Transducers India (Resistors and Transducers); and TDK India (Inductors), among others.
The latest approvals also involve projects for developing manufacturing capability in capital equipment, the release said, adding that "approvals were granted to six entities -- Titan Engineering & Automation Ltd, NeST Advanced Technology Development Centre Pvt Ltd, ASM Technologies Ltd, Indo-MIM Ltd, Bharat FIH Ltd, and IFB Industries Ltd," in this regard.
The approvals are expected to enhance domestic value addition by strengthening local supply chains, reducing dependence on imports of critical electronic components, and enabling the development of advanced manufacturing capabilities within India, the release added.
At the event, Vaishnaw issued a clear warning to the electronics component industry to act swiftly on the Centre's key asks for a concrete plan on building design capabilities, achieving Six Sigma quality standards, and enhancing workforce skilling – or else risk losing out on disbursements and new approvals under the scheme.
After granting approvals to 29 proposals under ECMS entailing fresh investment of Rs 7,104 crore, Vaishnaw cautioned that beneficiaries who do not invest in product design could be weeded out.
"I am willing to stop any further disbursements or approvals if the industry doesn't come up with the commensurate efforts," Vaishnaw said.