Govt clears 22 electronics parts projects at Rs 42,000 crore investment

NEW DELHI: In a major boost for electronics manufacturing, the Centre has cleared 22 new proposals - including from Samsung, Foxconn, Tata Electronics and Dixon - for component manufacturing entailing investments of nearly Rs 42,000 crore.

The investments under the Electronics Components Manufacturing Scheme (ECMS) are projected to result in domestic production of Rs 2.6 lakh crore in the coming years and reduce the reliance on imports. In recent years, electronics manufacturing, including mobile phones and computers, has increased in the country but imports haven't come down as the manufacturers rely on components produced in other countries, especially China.

Companies such as Apple are stepping up iPhone production in India, positioning it as a rival base to China and its vendors, including Foxconn, Tata Electronics, ATL Battery Tech, Hindalco Industries and Motherson Electronic Components, are among those investing under the new scheme.

While a production-linked incentive (PLI) scheme helped boost electronics manufacturing, the components programme is likely to augment that. The scheme will see the production of printed circuit boards, capacitors, enclosures and lithium-ion cells among the 11 categories.

While four facilities each will be in Maharashtra and Karnataka, Tamil Nadu, Andhra Pradesh, Uttar Pradesh and Haryana (three each) are the other major production centres under the scheme.

Govt had earlier cleared proposals in two tranches - seven projects with investment of Rs 5,500 crore and then 17 proposals entailing investment of Rs 7,172 crore.

IT minister Ashwini Vaishnaw said the Centre's focus on major reforms, enabling policies, and efficient and speedy execution of projects and initiatives have helped generate investments and the "results are clearly visible, sector after sector."

He also said that four chip companies will start commercial production this year, and almost all the top automobile and telecom companies will source semiconductors from them.

"The plants which started pilot production last year, they are the ones that will get into commercial production earlier, which is Kaynes and CG Semi. Micron has also started pilot production very recently. They will also go next month. Tata plant in Assam will start pilot production by middle of the year, and by the end of the year they will start the commercial production," Vaishnaw said.