Investment proposals worth Rs 80,000 cr for electronics sector

In an encouraging sign, the government has received fresh investment proposals of about Rs 5,000 crore in the field of electronics manufacturing, taking the cumulative amount to about Rs 80,000 crore till June.

This is as per latest data shared by the Department of Electronics and Information Technology (DEITY). The total number of investment proposals stood at 41 at the end of June.

"The rate of receipt of MSIPS applications has increased in the last two months. With the budget announced, this trend is expected to further strengthen. The mood is positive and there is optimism in the air. Potential investors are encouraged to make their move now," DEITY Joint Secretary Ajay Kumar said in a monthly communique.

The cumulative investment proposals include Rs 64,500 for electronics chips manufacturing, Rs 9,339 crore for telecom products, Rs 2,330 crore strategic electronics, Rs 1,993 LED, Rs 883 crore automative electronics, Rs 367 crore consumer electronics, Rs 330 crore industrial electronics, Rs 104 crore electronics contract manufacturing.

Proposals worth Rs 98 crore has come for avionics electronics and Rs 53 crore for medical electronics.

In June, the government approved an incubation centre that will be set up in Delhi to support start-ups working in field of electronics design and manufacturing.

The incubation centre will be set-up by Software Technology Parks of India (STPI) in collaboration with industry body, India Electronics and Semiconductor Association (IESA).

"The total project cost approved for assistance is as Rs 21.1 crore. STPI will set up an Incubator facility of 10, 000 square feet as part of this project. At least 50 start ups will be supported over a period of 5 years," the communique said.

Besides, DEITY has also set up a working group with industry to push local manufacturing of smart cards, radio frequency based ID and biometric products in the country.