GOVERNMENT OF INDIA

Department of Electronics and Information Technology (DeitY) Ministry of Communications & Information Technology

ELECTRONICS e-NEWSLETTER

…. For Electronics System Design & Manufacturing (ESDM) Sector

Year 3 | Vol. 25: November 2013

Electronics e-Newsletter, Room No. 2280, Department of Electronics and Information Technology

Ministry of Communications & Information Technology, Electronics Niketan, 6, CGO Complex, New Delhi 110003

From Chief Editor’s Desk

Dear Readers, The TV production in the country saw a big boost this year, especially after the carrying color LCD/LED TVs as free

baggage allowance was disallowed by Government. A small intervention made a big impact. This highlights the need for interventions beyond MSIPS to promote the sector.

Taxes are an instrument which can make a huge difference. Automotive sector is a vivid example of the same. Unfortunately, the scope of levying import tax is limited in the electronics sector due to the Information Technology Agreement, to which India is a signatory. Further bilateral agreements further restrict ability to provide any tariff protection. Even if Government cannot provide tariff protection to ITA products, it should not provide tariff protection to imported products. Unfortunately, it is this unfortunate reality which plagues the electronics sector. A few of these are mentioned below.

CST is a cascading effect on domestic manufacturers but does not apply for importers.

Import duty on consumables and inputs required for manufacture of ITA items also put domestic manufacturers to a disadvantage. Hundreds of small and big inputs (components, materials etc.) and consumables (chemicals, gases, etc.) go into manufacture of any typical electronic products. Several of these are dual use, i.e. apart from being used for manufacture of ITA items; these are used for other uses as well. Therefore, despite best intentions, the domestic manufacturers end up paying import duties on these.

Another complexity is the dynamic nature of electronic products and the inputs which go into these products. With new technologies and product versions emerging on regular basis, the list of inputs and consumables is a dynamic list. This makes it even more difficult for the manufacturers to continuously update the list of their inputs and consumables.

Another issue is the import duty on several capital equipment and tools required for ITA items. These add to capital costs of a domestic manufacturer as compared to this competitor in China or Thailand.

There are product specific unique circumstances which account for this inversion. For example, Set Top Boxes face 12 percent inversion because of the business model which most service providers adopt. The Set Top Box is provided as a service by the service provider thereby avoiding payment of VAT on an imported STB. On the other hand, VAT needs to be paid, when the service provider buys these devices from a local manufacturer.

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For feedback and subscription, please contact: Mr. Kapil Sharma, Editor (Electronics e-Newsletter) & Senior Consultant (Communication, Brand Building & Investment Promotion), Electronics System Design & Manufacturing (PMU), Department of Electronics and Information Technology, Ministry of Communications & Information Technology, Electronics Niketan, 6 CGO Complex, New Delhi 110003, India | Phone: +91 11 24301281| Mobile: +91 97166 44444 | Fax: +91 11

24364185 | Email: enewsletter-dit@nic.in, kapild.sharma@nic.in, kapildsharma@yahoo.com

ELECTRONICS e-NEWSLETTER …. For Electronics System Design & Manufacturing (ESDM)

Sector

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As a result, manufacturing of ITA items has practically got wiped out. There is no industry which would take up these issues with Government and make a case of resolving this inverted duty situation. We need to correct this inverted duty situation.

And then there is the world of electronics which is still not under the ITA commitment. Some prominent product categories include consumer electronics, medical electronics, automotive electronics, LED, industrial electronics (inverters etc.). A tariff strategy for these product verticals need to be worked out. One big problem that these products figure under their respective product categories and may not have clear HS classifications where these are distinguished from their non-electronic components. For example medical thermometer is not separately classified from a non-electronic thermometer. There is need for clear HS delineation of these products in all verticals and thereafter duty notifications which provide necessary incentives for greater value-addition in these product verticals. Several other issues also exist. The subject is complex and dynamic. Business as usual will not work for electronics sector. A Joint Working Group o Department of Revenue, Customs and department of Electronics and IT could help. Tariff provides an instrument for fostering the electronics sector which can be very effective. Automotive sector has demonstrated this. Recent decision on color TVs has also confirmed this. We hope to see more active use of tariff strategy for the benefit of the electronics sector in the country. Dr. Ajay Kumar

IIT Bombay designed Carrier Ethernet Network launched in Mumbai

The first phase of the Carrier Ethernet Network was launched in Mumbai on Oct. 24, 2013 at CETTM, Mahanagar Telephone Nigam Limited, Powai. The launch was presided over by Dr. R. Chidambaram, Principal Scientific Advisor, Govt. of India and former Chairman, DAE. P Sudhakar, Chairman & Managing Director, ECIL, AK Garg, Chairman & Managing Director, MTNL, Prof. Ashwin Gumaste, IIT – Bombay and Shri P Agrawal, ED, MTNL, Mumbai also participated at the launch event. The second phase will be operational in coming weeks.

The Carrier Ethernet Switch Router equipment indigenously developed by IIT Bombay and manufactured by Electronics Corporation of India Ltd (ECIL) has recently been installed in 8-locations across the city of Mumbai creating a 120 km city-wide network. The 8-locations together will yield a cumulative bandwidth of 768Gbps in phase 1, and 1.5Tbps in phase 2 for the city of Mumbai.

It is expected that this bandwidth will be useful for SMEs as well as key broadband backbone and backhaul infrastructure. The Carrier Ethernet Switch Router benchmarks 1-microsecond port-to-port latency and <70Watts of power consumption for a 96Gbps cross-connect fabric. Along with the network management system, the CESR network produces true SDN capability.

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ELECTRONICS e-NEWSLETTER …. For Electronics System Design & Manufacturing (ESDM)

Sector

Electronics e-Newsletter, Room No. 2280, Department of Electronics and Information Technology Ministry of Communications & Information Technology, Electronics Niketan, 6, CGO Complex, New Delhi 110003

Government of Andhra Pradesh to set up ITIR in Hyderabad

The Union Government has approved setting up of an IT Investment Region (ITIR) in Hyderabad covering an area of 202 Sq. Kms in three clusters/agglomerations, viz., (i) Cyberabad Development Area (ii) Hyderabad Airport Development Area and Maheshwaram in the South of Hyderabad (iii) Uppal and Pocharam areas in Eastern Hyderabad. These three clusters are connected by Outer Ring Road (ORR). The ITIR is expected to provide boost to the development of IT/ITES and electronics industry in the proposed area. This is the second ITIR approved under the ITIR policy resolution of the Government which was approved in May, 2008. Copy of the notification approving setting up of ITIR in Hyderabad is available at www.DeitY.govt.in/esdm

The approval for ITIR near Hyderabad is based on the proposal of Department of Information Technology & Communication, Government of Andhra Pradesh in this regard. The ITIR envisages an investment of `2,19,440 Crores over a period of twenty five years and is expected to create employment of nearly 70 lakhs people. The Government of Andhra Pradesh has already taken several steps to initiate the development of ITIR. These are as under

Constituted a Management Board for the purpose of the creation of ITIR.

Constituted State Level High Power Committee headed by Chief Secretary for monitoring the progress of implementation of ITIR.

An initial Environmental Impact Assessment (EIA) has been carried out for the ITIR. Project wise environmental clearances shall be taken before implementation of the projects.

Water pipe line from Krishna water project has been laid out. The Outer Ring Road(ORR) Project encompassing about 158 Kms connecting NH-9, NH-7 and NH-202 has been envisaged. Out of

this, the Phase-I ORR Project of 24 Kms has been completed at a project cost of `699 Crores and opened to traffic in July 2011. In Phase-II, road network covering a length of 59 Kms has been completed. Phase-III ORR Project to an extent of 71 Kms at a cost of `3558 Crores is also under active implementation. Capacity of seven sub-stations is being augmented to an extent of 481 MVA at a cost of `118 Crores. Another 3 substations capacity is being augmented and 7 new substations are planned at a cost of `3026 Crores in the ITIR area.

The role of the Central Government is to support the development of external infrastructure. The approval includes extension of MMTS from Falaknuma to Rajiv Gandhi Airport at an estimated cost of `85 Crores, extension of Metro Rail from Falaknuma to Shamshabad airport at an estimated cost of `3000 Crores and up-gradation of 3 radial roads at an estimated cost of `165 Crores. The respective Ministries of Government of India would take up these feasibility studies. Government of Andhra Pradesh has been requested to take steps to notify the delineated area for the ITIR under relevant State Act and take further necessary action to set up the ITIR at the earliest. For more information regarding the ITIR, please contact Shri Dipak Singh, Director, DeitY (Email: dipak.singh@deity.gov.in)

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ELECTRONICS e-NEWSLETTER …. For Electronics System Design & Manufacturing (ESDM)

Sector

Electronics e-Newsletter, Room No. 2280, Department of Electronics and Information Technology

Ministry of Communications & Information Technology, Electronics Niketan, 6, CGO Complex, New Delhi 110003

Last Date for “Aakash” tender is December 20, 2013

It has been decided to make available “Aakash” on Directorate General of Supplies & Disposals (DGS&D) Rate Contract, which will enable the Government Departments and individual Institutions to procure the Aakash Tablets without any procedural delays. DGS&D has brought out the Tender Enquiry No AAKASH/IT-1/RC-711B0000/1214/81 (details can be accessed at www.dgsnd.gov.in). The last date for Receipt of Tender is 20-12-2013, By 02:30 PM. The broad requirements for vendors participating are as follows. Those interested should refer to the Tender document for full details: 1. The Aakash tablet has to be domestically produced. 2. The domestic manufacturer of Aakash needs gets the right to issue Aakash logo from CDAC, Pune. 3. The Aakash tablet should meet the technical specifications as specified for Aakash-IV tablet. 4. The vendor shall provide repair, service and maintenance support for Aakash Tablets in at least one location in all states and UTs of

the country either through themselves or though tie-ups with a third party (NE states, UTs including Sikkim may be treated as one unit for this purpose).Spares shall be made available for at least three years from the date of sale.

Central and State Government Departments and agencies under their control and allowed to buy equipment from valid rate contract vendors without having to go for fresh tenders. Therefore, it is expected that such a process will result in significant demand for Aakash supply in the country. For more information, please contact Shri S.K. Marwaha, Director, DeitY (Email: smarwah@deity.gov.in)

First India-Japan Joint Working Group Meeting: Nov 13, 2013

Marking a new beginning to the relationship between Indian and Japan, in the electronics sector, the First Joint Working Group (JWG) meeting was convened between India and Japan on Nov. 13, 2013 at New Delhi. The meeting was co-Chaired by Dr. Ajay Kumar, JS, DeitY from Indian side and Mr. Kensuke Tomita, DDG, METI from the Japanese side. Three different sessions, Industry to Industry, Government to Industry and Government to Government were conducted during the JWG to sort-out various hindrances and decide on future road-map for the benefit of electronics manufacturing industry.

Unique to the JWG is the Industry to Industry session, without Government presence, wherein the leading industry organizations and companies participated and attempted to identify issues and areas of cooperation in promoting greater cooperation and collaboration between the two sides. The Industry to industry dialogue was led by India Electronics and Semiconductor Association (IESA) from the Indian side and by JEITA from the Japanese side.

DeitY presented the National Policy on Electronics and subsequent decision taken by DeitY as an outcome of the high level visit led by Hon’ble MCIT to Japan in the month of February 2013 like creation of Japan Help Desk, formation of JWG and other details. Shri Srivatsa Krishna, Secretary (IT, BT and S&T) Karnataka, Shri Hari Ranjan Rao, Secretary (IT) Madhya Pradesh, Shri Anoop Singh, Special Secretary, Andhra Pradesh, Shri Prabhjeet Singh, Sr. Manager (DIT) Punjab represented their States’ initiatives to promote electronics investment in their respective states. Mr. Yoshiiku Miyata, Senior Managing Director, M/s Panasonic Corporation, Mr. Masaya Watanabe, VP of Hitachi, Industrial park developers Shri Arun Bhagat, M/s GMR and Shri Ramesh S, M/s Sri City were among those who made presentations about their plans in the electronics sector in India.

Indian side presented three areas for greater cooperation and collaboration (i) Promotion of NPE in Japan, (ii) Human Resource Development in the area of electronics and (iii) Japan-Electronics Industrial Township in India. Japanese side brought out some of the difficulties of doing business in India. The Indian side assured to provide necessary support to Japanese companies planning investment in the area of electronics. The next JWG is expected to take place first half of 2014 in Japan and is expected to take the dialogue further and concretize plans for action. Companies and industry associations interested in collaborating with Japanese electronics companies may like to contact Shri PVG Menon, President, IESA (pvg@isaonline.org) or Shri Rajiv Jain, VP-Govt. Affairs, IESA (rajiv@isaonline.org)

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ELECTRONICS e-NEWSLETTER …. For Electronics System Design & Manufacturing (ESDM)

Sector

Electronics e-Newsletter, Room No. 2280, Department of Electronics and Information Technology Ministry of Communications & Information Technology, Electronics Niketan, 6, CGO Complex, New Delhi 110003

CSI promotes Electronics awareness in Colleges

The Department of Electronics and IT (DeitY) had entrusted Computer Society of India (CSI) with the responsibility to conduct 50 ESDM Workshops in Colleges all over India. The objective of these workshops is to create greater awareness amongst students, faculty and other academic stakeholders about the new opportunities in the electronics system design and manufacturing sector. Each workshop is expected to include presentations on the new policy initiatives of the Government, presentations by local industry leaders and a visit to an industry from the sector.

CSI invited proposals from its network of branches spread across the country and workshops at following 33 institutions have been organized under this initiative: 1. HMR Institute of Technology & Management, Hamidpur, Delhi 2. Sai School of Engineering, Palampur, Himachal Pradesh 3. Model Institute of Engineering and Technology (MIET), Kot Bhalwal, Jammu 4. IET-Bhaddal Technical Campus, Mianpur, Dist Ropar, Punjab 5. Uttaranchal University Dehradun 6. Govt. College of Engineering and Ceramic Technology, Kolkata 7. B.P. Poddar College of Engineering and Management, Kolkata 8. Gandhi Institute of Excellent Technocrats, Bhubaneswar 9. Hi-Tech Institute of Technology, Khordha 10. East Point College of Engineering & Technology, Bangalore 11. Union Christian College, Aluva 12. Sree Buddha College of Engineering, Alappuzha 13. Bharati Vidyapeeth’s Institute of Computer Applications and Management

(BVICAM), New Delhi 14. Sri Aurobindo Institute of Technology, Indore 15. Birla Institute of Technology, Patna 16. Rajagiri School of Engineering and Technology 17. Sir Padampat Singhania University 18. Marathwada Institute of Technology, Aurangabad 19. Shri Balwant Institute of Technology 20. K L university, Guntur District 21. Shri Vaishnav Institute of Technology, Indore 22. Silicon Institute of Technology, Bhubaneswar 23. JECRC Uttam Devi Mohan Lal College of Engineering, Jaipur 24. Amity School of Engineering, Amity University, Noida 25. GF Godavari College of Engineering, Jalgoan 26. Adi Shankara Institute of Engineering and Technology, Kalady 27. Banasthali Vidyapith, Banasthali 28. Charortar Institute of Technology, Changa 29. Dronacharya Group of Institute Greater Noida 30. GLS Institute of Computer Technology, Ahmedabad 31. Mahakal Institute of Technology & Management, Ujjain 32. Reva Institute of Technology & Management, Bangalore 33. Techno India NJR Institute of Technology, Udaipur

Colleges/ Universities interested in conducting such workshops for the benefit of their students and faculty, may like to contact Shri Ranga Rajagopal, Treasurer, CSI (Email: rangagopal1@gmail.com)

Indian Exports of HS Code 850440 (STATIC CONVERTERS)

Top 5 Destinations (Units)

2008-2009 2009-2010 2010-2011

U S A U S A U S A

NETHERLAND NETHERLAND NETHERLAND

SINGAPORE SINGAPORE SINGAPORE

U ARAB EMTS U ARAB EMTS FRANCE

HONG KONG HONG KONG CHINA P RP

2011-2012 2012-2013

U S A U S A

NETHERLAND NETHERLAND

FRANCE FRANCE

SINGAPORE CHINA P RP

CHINA P RP PHILIPPINES

(Value in US$ Million)

Spurt in TV manufacturing: September/ October 2013 In reports which would gladden hearts of

several, despite general decline in overall industrial production, the TV production in the country has bucked that trend. According to CEAMA reports, this has resulted in nearly 28% growth in domestic TV manufacturing in the months of September-October 2013 over same period in 2012-13. Particular growth has been witnessed in manufacturing by companies like Samsung, LG, Videocon & Panasonic. Government of India restricted bringing of color TVs as part of free baggage allowance effective from 26th August ’13. The growth is largely attributed to the measure taken by Government in this regard.

Published by: Department of Electronics and Information Technology, Ministry of Communications & Information Technology

Electronics Niketan, 6, CGO Complex, New Delhi 110003

National Policy on Universal Electronic Accessibility

Cabinet had approved the National Policy on Universal Electronic Accessibility. The policy endeavours to facilitate equal and unhindered access to Electronics and ICTs products and services by differently abled persons. This policy recognizes the need to eliminate discrimination on the basis of disabilities as well as to facilitate equal access to Electronics and ICTs. It also recognizes need for ensuring that accessibility standards, guidelines and universal design concepts are adopted and adhered to. The policy covers technological aspects including access to Electronics and ICTs (both hardware and software) by differently abled persons including areas of universal design, assistive technology and independent living aids. The following strategies have been envisaged for the implementation of the policy:

i) Creating awareness on universal electronics accessibility and universal design

ii) Capacity building and infrastructure development iii) Setting up of model Electronics & ICTs centres for providing training and

demonstration to special educators and physically as well as mentally challenged persons

iv) Conducting Research & Development, use of innovation, ideas, technology etc. whether indigenous or outsourced from abroad

v) Developing programme and schemes with greater emphasis for differently abled women/children

vi) Developing procurement guidelines for Electronics & ICTs for Accessibility and Assistive needs.

The policy is accepted to lead to greater focus and funding of research for design and development of projects for differently abled. Institutions interested in taking up such projects may contact Shri Dipak Singh, Director, DeitY (Email: dipak.singh@deity.gov.in)

Editorial Board

Chief Editor : Dr. Ajay Kumar, Jt. Secretary, DeitY Editor : Sh. Kapil Sharma, Sr. Consultant, DeitY Member : Dr. Debashis Dutta, GC, DeitY Member : Sh. Akhila Chandra Jha, DDG, DGFT Member : Sh. G. Prasad, Scientist E, MNRE Member : Sh. S.K. Marwaha, Director, DeitY Member : Dr. R. C. Chopra, Sr. Advisor, CII

For detailed information on Government of India policies, please visit

ESDM page on

www.deity.gov.in/esdm

Status of MSIPS Applications (as on 25th

Nov 2013) # Sector Amount (in `Crores) Approved

1 Consumer Electronics and Appliances 450 Nil

2 Hand held devices 6744 406

3 Telecom Products 1770 NIL

4 LEDs and LED Products 310 11

5 LED Fab 1784 Nil

6 Electronic Components 45 NIL

7 Automotive Electronics 707 544

8 Power Electronics 40 NIL

9 Strategic Electronics 210 NIL

10 ATMP - Semiconductor 750 NIL

11 Solar Photovoltaics 41 NIL

Total investment involved is about `12851 Crores with 21 applications.

Indian Imports of HS Code 850440 (STATIC CONVERTERS)

Top 5 Destinations (Units)

2008-2009 2009-2010 2010-2011

CHINA P RP CHINA P RP CHINA P RP

GERMANY GERMANY GERMANY

U S A THAILAND JAPAN

SINGAPORE U S A U S A

JAPAN JAPAN THAILAND

2011-2012 2012-2013

CHINA P RP CHINA P RP

GERMANY GERMANY

U S A U S A

FINLAND FINLAND

JAPAN JAPAN

(Value in US$ Million)

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ELECTRONICS e-NEWSLETTER …. For Electronics System Design & Manufacturing (ESDM) Sector

Status of Grant of Interim Extension under CRS (as on 25th

Nov 2013) As per the Provisional Registration Scheme put in place by DeitY for grant of Provisional Registration Orders to Manufacturers of the 15 notified Goods included in the CRS Order till the Jan 3, 2014, so far over 1000 applications were received by DeitY from which over 950 Provisional Orders have already been issued. Remaining applications are in advanced stages of scrutiny. Status of the applications is as under:

# Status Numbers

1 Total number of Applications Received for Registration by BIS 470

2 Registrations Granted by BIS 325

3 Applications received for Grant of Extension at DeitY Over 1000

4 Extension Orders issued by DeitY Over 950

The copies of all the Extension Orders issued by DeitY are updated on a daily basis on the DeitY website, http://DeitY.gov.in/content/interim-extension-issued-DeitY-under-crs. For more details, please contact Shri Arun Sachdeva, Sr. Director (asachdeva@deity.gov.in)