Investments worth Rs 961 cr in electronics sector cleared

Mumbai: The Centre has approved investment proposals worth Rs 961 crore from Samsung, Bosch and Sahasra for the setting up of electronic systems design and manufacturing (ESDM) facilities in the country.

The proposals were received under the Department of Electronics and Information Technology’s Modified Special Incentive Package Scheme (M-SIPS), in which the government will provide up to Rs 10,000 crore in financial support to spur production of electronics products and components.

“The Government is trying to promote manufacturing to create employment and bring the latest technologies into the country,” said Kapil Sibal, Union Minister for Communications & IT and Law and Justice, in a press statement.

Under M-SIPS, the Department said it has already received investment proposals totalling close to Rs 4,600 crore for manufacture of consumer electronics, telecom products, hand-held devices, automotive electronics and semiconductors.

Bosch’s India unit has received approval for its Rs 544 crore investment programme in Bangalore to manufacture automotive electronics. Bosch, the first company to submit an application under M-SIPS, is expected to implement the project in the next three years.

Confidence booster
“India is a fast developing market for automotive electronics…this support from the government bolsters our confidence and strengthens efforts to provide customized solutions for the Indian market,” said Markus Hildenbrand, Managing Director, Bosch Automotive Electronics India, in a media statement.

Consumer electronics giant Samsung has received approval for its Rs 406 crore project to manufacture smart phones in Noida, as per the Department of Electronics and Information Technology’s press statement. Both Samsung and Bosch will be eligible for a subsidy of 25 per cent in their investments in areas that are not designated as special economic zones. Sahasra Electronics, which has proposed an investment of Rs 11.1 Crore for LED lighting products, will receive a subsidy of 20 per cent at its SEZ unit.