Status update: Implementation of MeitY’s policies

December 22, 2016

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From the modification of the special incentive package to the procurement of locally manufactured electronics products, MeitY is working hard to bring out updated policies and schemes to promote electronics manufacturing in India

By EB Bureau

Modified Special Incentive Package Scheme (MSIPS): MeitY’s flagship scheme, the MSIPS, was announced by the government of India in July 2012 to offset the disabilities inherent to ‘making in India’ and hence attract investments in electronics manufacturing. (Table 1)
The Electronics Manufacturing Cluster (EMC) Scheme: Under the EMC scheme, 12 greenfield EMCs and one Common Facility Centre (CFC) in a brownfield EMC have been accorded final approval, while 13 greenfield EMCs and three CFCs in a brownfield EMC have got ‘in principle’ approval. (Table 2)
Electronics Development Fund (EDF): The EDF has been set up as a ‘Fund of Funds’ to participate in the ‘Daughter Funds’ which, in turn, will provide risk capital to companies developing new technologies in the area of electronics, nano-electronics and information technology (IT).
Twelve daughter funds have been approved for an ‘in-principle’ commitment of ₹ 5.10 billion from the EDF and four daughter funds have been approved for a final commitment of ₹ 1.79 billion. The cumulative total corpus of these daughter funds is around ₹ 68 billion.
Preference to Domestically Manufactured Electronic Products (DMEP) in government procurement:

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For government procurements, preference should be given to domestically manufactured electronic products in the following nine generic categories—desktop PCs, laptops, tablet PCs, dot matrix printers, smart cards, LED products, biometric access control/authentication devices, biometric finger print sensors and biometric iris sensors. These products, procured across sectors, have been notified by the Ministry of Electronics and Information Technology (MeitY), while 23 telecommunications products have been notified by the Department of Telecommunications (DoT), in furtherance of the domestic procurement policy. The Directorate General of Supplies and Disposals (DGS&D) has issued guidelines for implementing the policy in its rate contract process guidelines.
An online monitoring system at www.deity-pma.gov.in has been operationalised w.e.f. January 27, 2015, for ministries and departments to report their compliance with the policy. The user IDs and passwords to be used for uploading the report on the online portal have been communicated to the respective government departments.
As on September 20, 2016, 14 ministries, departments and agencies have uploaded their compliance reports on this portal. So far, the ministries/departments have procured electronic products worth ₹ 4 billion, complying with the policy for showing preference to DMEPs in government procurement.

Electropreneur Park: The Electropreneur Park at Delhi aims at supporting 50 startups working on the design and development of electronic products, and creating five global companies over a period of five years.
Status: The incubation centre has six early stage startups from the 176 proposals submitted to it, with a few more in the process of being approved. The startups under incubation were awarded the admission certificate during the inauguration of the centre.

The MSIPS scheme is open to receiving applications till July 2020. For further details, visit: http://meity.gov.in/esdm/incentive-schemes or contact Vandana Srivastava, director, at [email protected]