Electronic System Design and Manufacturing Sector – M-SIPS, National Policy on Electronics, etc.

Oct, 12, 2018

Draft electronics policy: Govt aims $400-billion electronics manufacturing sector by 2025


Mains Paper 3: Economy | Changes in industrial policy and their effects on industrial growth

From UPSC perspective, the following things are important:

Prelims level: Particulars of the draft policy

Mains level: Electronics manufacturing sector in India


Draft Electronics Policy

  1. With an aim to create $400-billion electronics manufacturing industry by 2025, the Ministry of Electronics and Information Technology has come out with a draft electronics policy.
  2. The government is working on a framework to increase the competitiveness of made in India electronics products that will include efforts to improve the ease of doing business.
  3. According to the draft, the government plans to end modified special incentive scheme with new schemes that it will find easier to implement such as interest subsidy and credit default guarantee etc.
  4. Modified Special Incentive Package scheme (M-SIPS) was launched in 2012 which provided for capital subsidy of 25 per cent for Electronics Industry located in non-SEZ area and 20 per cent for those in SEZ areas.
  5. One of the objectives of the policy is to provide support for “significantly” enhancing availability of skilled manpower in the electronics system design and manufacturing industry.

Key propositions of the draft Policy

  1. The policy aims to push development of core competencies in all the sub-sectors of electronics including electronic components and semiconductors, defence electronics, automotive electronics, industrial electronics, strategic Electronics etc.
  2. The draft also proposes suitable direct tax benefits, including inter-alia investment-linked deduction under Income Tax Act for electronics manufacturing sector, for setting up of a new manufacturing unit or expansion of an existing unit.
Apr, 12, 2016

India Post strikes it rich with cash-on-delivery payments

  1. News: India Post is expecting cash transactions under cash-on-delivery model of payment to be about Rs 1,500 crore for FY 2015-16
  2. Reason: It has taken major initiatives to strengthen its position for the e-commerce business requirements
  3. Fact: The Department of Posts, with its network of nearly 1.55 lakh post offices, is the largest postal network in the world
Mar, 23, 2016

Rajasthan celebrates first IT Day, launches connectivity network

  1. News: Rajasthan recently (21st May) celebrated its first IT day
  2. Theme: Promotion of IT Start-ups
  3. Context: State govt launched RajNET, a wide area network connecting the State capital with all 9,894 gram panchayats and 183 municipal areas
  4. Aim: To strengthen connectivity and allow the inclusion of remote areas through Information Technology.
  5. Facilitates: voice, video and data connection, enabling effective delivery of citizen services like Bhamashah, e-Mitra and MNREGA across the State
Feb, 25, 2016

Telecom Ministry seeks 250% rise in planned Budget

  1. News: Telecom Ministry has sought a planned Budget outlay of Rs.18,214.32 crore for 2016-17
  2. Context: Major chunk of demand of Rs. 8,230 crore comes for implementation of defence service network project
  3. About Defence Service Network: To build an exclusive dedicated alternate communication network for defence services so that the military can free the spectrum for offering mobile services
  4. Proposal for: Double allocation for Universal Obligation Fund which aims to augment the infrastructure and increase telecom coverage in the rural and remote areas
  5. Funds under this head: be utilised for laying optical fibre under National Optical Fibre Network programme
Feb, 16, 2016

Govt allows sharing of active telecom infra

  1. Context: The department of telecommunications (DoT) has decided to allow sharing of active telecom Infrastructure
  2. Active infra: such as antennae, feeder cables, and transmission systems, Radio Access Network (RAN)
  3. Effect: expected to lower costs for operators and lead to faster rollout of networks
  4. Spectrum sharing: Last year, DoT allowed sharing of spectrum, a critical resource for expansion of telecom networks
  5. Benefit: Help operators enhance their network coverage area and fill the gaps, enabling them to improve quality of service
  6. Earlier: operators were allowed to share only passive infrastructure such as towers, repeaters, and shelters
Feb, 13, 2016

Minister for Telecom & IT to Launch Electronics Development Fund (EDF)

  1. Background: The Electronics Development Fund Policy was launched by Prime Minister, during the inauguration of Digital India Week on 1st July 2015
  2. Context: Government has appointed CANBANK Venture Capital Fund Pvt. Ltd. to house EDF
  3. Ministry: EDF an initiative of IT Department is formulated as a “Fund of Funds” to participate in “Daughter Funds”
  4. Beneficiaries: Daughter Funds (set up to achieve the objectives of the EDF policy) registered in India
  5. Regulation: Abiding by the relevant rules and regulations including the SEBI regulations on Venture Fund
Jan, 04, 2016

Government forms panel to study wage structure of gramin dak sevaks

  1. To examine the wage structure, service conditions of the Gramin Dak Sevaks (GDS) in the Department of Posts (DoP).
  2. It is one member committee comprising of Kamlesh Chandra, Retired Member of Postal Services Board.
  3. The Committee will go into the service conditions of GDS and suggest changes as considered necessary.
  4. Examine the present system of Branch Post Offices, engagement conditions and existing structure of wage and enrolments paid to the GDS and recommend necessary changes.
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