Electronic Companies Bet On Local Manufacturing
New Delhi: The government has received 19 investment proposals worth more than Rs 11,000-crore in hi-tech electronic sector, including mobile phones segment, which is heavily dependent of imports at present.
The proposals are from both domestic and foreign investors. For mobile phone production alone, the government has received plans worth Rs 6,744 crore, which include proposals by some existing players for enhancing production facilities. According to government data, over Rs 25,800 crore worth of mobile handsets were imported in 2012-2013.
"Investment proposals received by us have reached Rs 11,038 crore till date. This includes both domestic and foreign firms," Joint Secretary with DEITY Ajay Kumar told PTI.
"This shows there is positive response to the new policy on electronics and we have taken steps towards creating eco system for electronics manufacturing," he added.
The Department of Electronics and Information Technology (DEITY) in June had received investment proposal of around Rs 4,595 crore. Proposals worth more than Rs 6,400 crore came within six weeks of clearing the first set of investments.
"With depreciation of rupee, the silver lining is that domestic manufacturing is becoming little bit more competitive," Kumar said. He, however, declined to disclose names of firms who have submitted their proposals.
Government has also received fresh investment proposals in automotive electronics and solar products manufacturing of Rs 68 crore and Rs 41 crore respectively.
Last month government had cleared investment proposals of around Rs 3,300 crore under National Policy on Electronics.
The investment proposals cleared by government for electronics manufacturing included Rs 544 crore from Bosch Electronics in automotive electronics segment, Rs 406 crore from Samsung Electronics for manufacturing of mobile phones in the country and Rs 11.1 crore from Indian firm Sahasra Electronics for manufacturing LED lights in Noida.
Investment proposals amounting to Rs 2,327 crore for setting three new electronics clusters-specific zone which will house entire eco-system required to develop electronic products were also approved by government.
Under the National Policy on Electronics, government has announced a slew of benefits which include up to Rs 10,000 crore sops to the industry over the next five years for promoting production of electronics products and components.