LED products that fall under PMA Policy are those that utilise light produced by LEDs and cover applications like illumination, optical displays including LED TVs, back lighting, signalling, indication and transportation
By EB Bureau
Wednesday, August 14, 2013: The most recent additions under the Preferential Market Access policy are light emitting diode (LED) products. DeitY has notified all Central government ministries, departments (except defence) and the agencies under their control to procure 50 per cent of their requirements of LED products from domestic manufacturers. Also, 50 per cent of domestic value addition in terms of bill of materials (BOM) is required for these LED products to qualify as domestically manufactured. These products include those that utilise light produced by LEDs and cover applications like illumination, as well as optical displays including LED TVs, back lighting, signalling, indication and transportation.
Criteria for BOM
The domestic BOM of LED products will be the sum of the cost of the main inputs as specified in Column 1 of the table below, provided the inputs individually satisfy the value addition requirements specified in Column 2 of the table. However, the weightage of the total cost of the heat-sink or thermal management solutions, secondary optics and system fixtures and fittings should not exceed 20 per cent of the domestic BOM of the LED product.
What a manufacturer needs to do
The table below specifies how much value addition is required for each part used in an LED product.
First year for the purpose of this notification would be up to March 31, 2014. The domestic value-addition from second year onwards would automatically increase by 5 per cent. DeitY will review the notification from time to time in case of the technology manufacturing ecosystem evolving differently from the one envisaged for this notification.
| Parameters that qualify an LED product as ‘India made’ | |
| Main inputs in BOM/stages for manufacture of LED products |
Value addition required for the input to be classified as domestic BOM |
|
LED emitter |
Packaging from imported/domestically fabricated bare LED die, subject to the condition that implements from second year onwards, the bare LED die should be domestically fabricated using imported/indigenously manufactured inputs |
|
Driving electronics |
Can be domestically assembled from imported/indigenously manufactured parts and components, subject to the condition that the value of domestically manufactured parts and components (excluding the value of the bare PCB) used in the assembly of driving electronics is a minimum of 10 per cent of the total value of parts and components used in the manufacture of driving electronics in the first year. This should increase to a minimum of 20 per cent of the total value of parts and components used in the manufacture of driving electronics in the second year and a minimum of 30 per cent in third year. |
|
Bare PCB including MCPCB |
Domestically manufactured using imported/indigenously manufactured inputs |
|
Heat-sink or thermal management solutions |
Domestically manufactured using imported/indigenously manufactured inputs |
|
Secondary optics |
Domestically manufactured using imported/indigenously manufactured inputs |
|
System fixtures and fittings |
Domestically manufactured |
|
Final assembly/testing |
Domestically assembled/tested—meeting Indian standards as notified from time to time |
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