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

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

[pib] Scheme for Promotion of manufacturing of Electronic Components and Semiconductors (SPECS)

Note4Students

From UPSC perspective, the following things are important :

Prelims level : SPECS

Mains level : Not Much


The Union Cabinet has approved Scheme for Promotion of manufacturing of Electronic Components and Semiconductors.

About SPECS

  • The scheme aims to offer the financial incentive of 25% of capital expenditure for the manufacturing of goods that constitute the supply chain of electronic products.
  • The 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.

Benefits

The proposal, when implemented, will lead to the development of electronic components manufacturing ecosystem in the country. Following are the expected outputs/outcomes in terms of measurable indicators for the scheme:

  • Development of electronic components manufacturing ecosystem in the country and deepening of Electronics value chain
  • New investments in Electronics Sector to the tune of at least Rs. 20,000 crore
  • Total employment potential of the scheme is approximately 6,00,000
  • Reducing dependence on import of components by large scale domestic manufacturing that will also enhance the digital security of the nation
Posted on | Custom
Electronic System Design and Manufacturing Sector – M-SIPS, National Policy on Electronics, etc.

[pib] Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level : EMC 2.0 Scheme

Mains level : Not Much


The Union Cabinet has approved financial assistance to the Modified Electronics Manufacturing Clusters (EMC2.0) Scheme

Background

  • To build and create requisite infrastructure ecosystem for electronics manufacturing; Ministry of Electronics and Information Technology notified Electronics Manufacturing Clusters (EMC) Scheme which was open for receipt of applications upto October, 2017.
  • A period of 5 years is available for disbursement of funds for the approved projects.
  • There was a need for continuation of such scheme in modified form for further strengthening the infrastructure base for electronics industry in the country and deepening the electronics value chain.

EMC 2.0 Scheme

  • The Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme would support setting up of both Electronics Manufacturing Clusters (EMCs) and Common Facility Centers (CFCs).
  • For the purpose of this Scheme an EMC would set up in geographical areas of certain minimum extent, preferably contiguous, where the focus is on development of basic infrastructure, amenities and other common facilities for the ESDM units.
  • For Common Facility Centre (CFC) there should be a significant number of existing ESDM units located in the area and the focus is on upgrading common technical infrastructure and providing common facilities for the ESDM units in such EMCs, Industrial Areas/Parks/industrial corridors.

Aims and objectives

  • The scheme aims for development of world class infrastructure along with common facilities and amenities through Electronics Manufacturing Clusters (EMCs).
  • It is expected that these EMCs would aid the growth of the ESDM sector, help development of entrepreneurial ecosystem, drive innovation and catalyze the economic growth of the region by attracting investments in the sector, increasing employment opportunities and tax revenues.

Benefits

The Scheme will create a robust infrastructure base for electronic industry to attract flow of investment in ESDM sector and lead to greater employment opportunities.  Following are the expected outputs/outcomes for the Scheme:

  • Availability of ready infrastructure and Plug & Play facility for attracting investment in the electronics sector:
  • New investment in electronics sector
  • Jobs created by the manufacturing units;
  • Revenue in the form of taxes paid by the manufacturing units
Posted on | Custom
Electronic System Design and Manufacturing Sector – M-SIPS, National Policy on Electronics, etc.

Draft electronics policy: Govt aims $400-billion electronics manufacturing sector by 2025Priority 1


Note4students

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


News

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

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

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

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

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

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

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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