Hyderabad: Mahindra Satyam and Dion Global Solutions have launched a software solution in Australia and New Zealand targeting the financial institutions. The solutions would help these institutions meet US Foreign Account Tax Compliance Act (FATCA) regulations.
Mahindra Satyam picked about 15 per cent stake in Dion last year. The solution, FATCA TRAC, developed by the two firms, complies with FATCA regulations, providing tools for programme management, client
classification and remediation, Rohit Gandhi, Senior Vice-President (Asia-Pac, India and West Asia and Africa) of Mahindra Satyam, said here in a release on Tuesday.
Success in my Habit
Monday, June 3, 2013
Honda opens third 2-wheeler plant in India
Narasapur: Honda Motorcycle and Scooter India (HMSI), India’s second-largest two-wheeler company, plans to expand its installed annual capacity 15 per cent to 4.6 million units by March 2014.
On Tuesday, the company inaugurated a plant at the industrial area here, 58 km from Bangalore, it’s third plant in the country, after those in Manesar in Haryana and Tapukara in Rajasthan.
The three plants have a combined capacity of four million units a year.
The Narasapura plant would initially produce 1.2 million units a year. By March 2014, additional capacity of 600,000 units would be added, through a third assembly line, said Keira Muramatsu, president & chief executive. The Narasapura plant would see a total investment of Rs 1,350 crore, including the funds for expansion.
The company has acquired 23 acres from the Karnataka government for creating additional facilities such as a safety riding track. By the end of this financial year, the plant, spread over 96 acres, would provide employment to 4,500 people, said Yadvinder Singh Guleria, vice-president (sales and marketing). The company would produce the Dream Yuga motorcycle at the plant from June. Two months later, it would start manufacturing Activa scooters on the second assembly line, he added.
Accordingly, the company would reduce the Activa’s waiting period from the current 15 days.
“At present, 100,000 customers are waiting for delivery of the Activa in cities such as Bangalore, Kochi, Trivandrum, Chennai, Hyderabad and Vizag,” he said.“Seeing the current trend of demand for scooters and motorcycles, we have decided to expand the capacity by 6,00,000 vehicles by the end of this financial year to raise the total capacity to 1.8 million units in Narasapura.
On Tuesday, the company inaugurated a plant at the industrial area here, 58 km from Bangalore, it’s third plant in the country, after those in Manesar in Haryana and Tapukara in Rajasthan.
The three plants have a combined capacity of four million units a year.
The Narasapura plant would initially produce 1.2 million units a year. By March 2014, additional capacity of 600,000 units would be added, through a third assembly line, said Keira Muramatsu, president & chief executive. The Narasapura plant would see a total investment of Rs 1,350 crore, including the funds for expansion.
The company has acquired 23 acres from the Karnataka government for creating additional facilities such as a safety riding track. By the end of this financial year, the plant, spread over 96 acres, would provide employment to 4,500 people, said Yadvinder Singh Guleria, vice-president (sales and marketing). The company would produce the Dream Yuga motorcycle at the plant from June. Two months later, it would start manufacturing Activa scooters on the second assembly line, he added.
Accordingly, the company would reduce the Activa’s waiting period from the current 15 days.
“At present, 100,000 customers are waiting for delivery of the Activa in cities such as Bangalore, Kochi, Trivandrum, Chennai, Hyderabad and Vizag,” he said.“Seeing the current trend of demand for scooters and motorcycles, we have decided to expand the capacity by 6,00,000 vehicles by the end of this financial year to raise the total capacity to 1.8 million units in Narasapura.
Tandem Capital launches India fund
Bangalore: Silicon Valley-based Tandem Capital, an accelerator founded in 2007 for startups in the mobile space, is launching an India-focused fund that plans to invest in 20 startups in the country over the next one year.
The California-based accelerator has roped in Manipal Education and Medical Group CEO Ranjan Pai and the company's chief advisor T V Mohandas Pai as partners who will co-invest in the fund, which will be Tandem's third. Sunil Bhargava, co-founder, and Rohit Bhagat, partner in Tandem, who met TOI in Bangalore, said they would not be able to disclose the fund size immediately. They said they would add more partners in India soon.
With India on the cusp of a mobile revolution, the opportunities to develop consumer-focused mobile technologies are seen to be huge. "For millions of Indian consumers who missed the PC revolution, the explosion of smartphones gives access to computers in their pockets," said Bhargava. India is the second-largest mobile phone market with a total of 861 million mobile connections as of February, as per data from telecom regulator Telecom Regulatory Authority of India ( Trai).
Tandem, started by Bhargava and Doug Renert, both technology entrepreneurs, utilizes what it calls `muscle capital' to take forward the ventures it supports. Tandem's partners work closely with startup founders to get a minimum viable product to market quickly, providing hands-on support in areas such as strategy, product design, technology, user acquisition, recruitment and channel development.
Bhargava has twenty years of deep technology experience and worked in Xerox PARC, HP, Oracle, Webvan and Business Signatures. Renert has a similar tech experience in building and helping startups at Oracle, DLA and Tello.
The mobile accelerator invests in about 12 companies every year. Its partners do not mentor more than three companies at any point. The accelerator has invested in Pune-based Quadnode and Bangalore-based gaming portal Bash Gaming.
Tandem invests about $200,000 in each mobile startup and works closely with the team for an initial 6-month period. However, it could support a venture beyond the seed stage to series A and B rounds. "In India, we may have to handhold companies for a longer period," said Bhagat, who previously worked as the chairman of investment management company BlackRock's Asia Pacific region.
The California-based accelerator has roped in Manipal Education and Medical Group CEO Ranjan Pai and the company's chief advisor T V Mohandas Pai as partners who will co-invest in the fund, which will be Tandem's third. Sunil Bhargava, co-founder, and Rohit Bhagat, partner in Tandem, who met TOI in Bangalore, said they would not be able to disclose the fund size immediately. They said they would add more partners in India soon.
With India on the cusp of a mobile revolution, the opportunities to develop consumer-focused mobile technologies are seen to be huge. "For millions of Indian consumers who missed the PC revolution, the explosion of smartphones gives access to computers in their pockets," said Bhargava. India is the second-largest mobile phone market with a total of 861 million mobile connections as of February, as per data from telecom regulator Telecom Regulatory Authority of India ( Trai).
Tandem, started by Bhargava and Doug Renert, both technology entrepreneurs, utilizes what it calls `muscle capital' to take forward the ventures it supports. Tandem's partners work closely with startup founders to get a minimum viable product to market quickly, providing hands-on support in areas such as strategy, product design, technology, user acquisition, recruitment and channel development.
Bhargava has twenty years of deep technology experience and worked in Xerox PARC, HP, Oracle, Webvan and Business Signatures. Renert has a similar tech experience in building and helping startups at Oracle, DLA and Tello.
The mobile accelerator invests in about 12 companies every year. Its partners do not mentor more than three companies at any point. The accelerator has invested in Pune-based Quadnode and Bangalore-based gaming portal Bash Gaming.
Tandem invests about $200,000 in each mobile startup and works closely with the team for an initial 6-month period. However, it could support a venture beyond the seed stage to series A and B rounds. "In India, we may have to handhold companies for a longer period," said Bhagat, who previously worked as the chairman of investment management company BlackRock's Asia Pacific region.
Teledensity rises from 7.04 pc to 73.07 pc in last nine years average call rates drop to 47 paisa from Rs 2.89
New Delhi: The Indian telecom sector has registered a phenomenal growth during the past few years and has become second largest telephone network in the world, only after China. A series of reform measures by the Government, the wireless technology and active participation by private sector played an important role in the exponential growth of telecom sector in the country. National Telecom Policy-2012 (NTP-2012) was announced with the primary objective of maximizing public good by making available affordable, reliable and secure telecommunication and broadband services across the entire country.
With the implementation of NTP 2012, the number of telephonic connections rose exponentially. The number of telephone connection was 893.14 million as on January 2013 with the rural telephone connections having increased by nearly 10 million in the last year. The overall teledensity stood at 73.07 per cent as on January 2013 with the rural teledensity crossing 40 per cent. This is in sharp contrast with the overall teledensity of 7.04 per cent and rural teledensity of merely 1.7 per cent in March 2004.
As far as mobile penetration is concerned, the preference for use of wireless telephony continues. The share of wireless telephones increased from 96.62% as on March 31, 2012 to 96.74% by the end of June 2012 and thereafter slightly declined to 96.56% by the end of December 2012. On the other hand, the share of landline telephones slightly increased from 3.38% to 3.44% during the period from April to December 2012.
The wireless subscriber base increased from 33.6 million in March 2004 to 864.72 million as on December 2012. On the other hand, the average tariff for each outgoing call per minute for GSM services dropped from Rs. 2.89 in March 2004 to 47 paisa in December 2012.
With the implementation of NTP 2012, the number of telephonic connections rose exponentially. The number of telephone connection was 893.14 million as on January 2013 with the rural telephone connections having increased by nearly 10 million in the last year. The overall teledensity stood at 73.07 per cent as on January 2013 with the rural teledensity crossing 40 per cent. This is in sharp contrast with the overall teledensity of 7.04 per cent and rural teledensity of merely 1.7 per cent in March 2004.
As far as mobile penetration is concerned, the preference for use of wireless telephony continues. The share of wireless telephones increased from 96.62% as on March 31, 2012 to 96.74% by the end of June 2012 and thereafter slightly declined to 96.56% by the end of December 2012. On the other hand, the share of landline telephones slightly increased from 3.38% to 3.44% during the period from April to December 2012.
The wireless subscriber base increased from 33.6 million in March 2004 to 864.72 million as on December 2012. On the other hand, the average tariff for each outgoing call per minute for GSM services dropped from Rs. 2.89 in March 2004 to 47 paisa in December 2012.
Top five Indian IT services firms grew 13 per cent in 2012
Bangalore: Last year, the top five Indian information technology (IT) services providers - Tata Consultancy Services (TCS), Infosys, Wipro, HCL and Cognizant- together grew 13.3 per cent, accounting for revenues of $34.3 billion. During the same period, the overall IT services industry grew just two per cent, research and advisory firm Gartner said today.
However, the companies' growth was lower than 21.8 per cent, their combined growth in 2011.
The Gartner report includes the Nasdaq-listed Cognizant, as the company predominantly has an India-based delivery model and its management is largely India-based.
According to the report, though the growth of India-based providers had slowed for some years, the trend was more pronounced last year. However, "this growth rate is still quite high compared with IT services worldwide, or the growth of the top 10 global IT services providers", it said.
The top five Indian IT services companies improved their market share from 3.5 per cent in 2011 to 3.7 per cent in 2012, the report said. Cognizant, which overtook Infosys in terms of annual revenues in 2012, improved its global ranking from 28 in 2011 to 23 in 2012.
The difference between the revenues of TCS and 10th ranked Hitachi was about $1.5 billion, the report said. In 2012, TCS continued to hold on to its global ranking of 16.
"The top five Indian service providers have continuously chipped away market share from large multinational corporation providers. In the past five years, they have been winning large outsourcing deals (those with a total contract value of more than $100 million)," said Arup Roy, research director at Gartner. "Most of these firms have a large-deal pursuit sales team, which goes after deals of more than $35 million in contract value," he added.
However, the companies' growth was lower than 21.8 per cent, their combined growth in 2011.
The Gartner report includes the Nasdaq-listed Cognizant, as the company predominantly has an India-based delivery model and its management is largely India-based.
According to the report, though the growth of India-based providers had slowed for some years, the trend was more pronounced last year. However, "this growth rate is still quite high compared with IT services worldwide, or the growth of the top 10 global IT services providers", it said.
The top five Indian IT services companies improved their market share from 3.5 per cent in 2011 to 3.7 per cent in 2012, the report said. Cognizant, which overtook Infosys in terms of annual revenues in 2012, improved its global ranking from 28 in 2011 to 23 in 2012.
The difference between the revenues of TCS and 10th ranked Hitachi was about $1.5 billion, the report said. In 2012, TCS continued to hold on to its global ranking of 16.
"The top five Indian service providers have continuously chipped away market share from large multinational corporation providers. In the past five years, they have been winning large outsourcing deals (those with a total contract value of more than $100 million)," said Arup Roy, research director at Gartner. "Most of these firms have a large-deal pursuit sales team, which goes after deals of more than $35 million in contract value," he added.
Tuesday, May 28, 2013
Mahindra First Choice hopes to expand used-car dealership network
Mangalore: The multi-brand used-car marketer, Mahindra First Choice, is planning to increase its dealerships by 100 during 2013-14.
Addressing presspersons on the sidelines of the inauguration of a dealership in Mangalore, Yatendra Chada, Vice-President, Retail (Franchisee), Mahindra First Choice Wheels Ltd, said the company has around 260 dealership outlets in the country. Around 100 more outlets would be opened during the current financial year, he said.
The company, which aims to expand the number of outlets to 500 in the next three years, wants to ensure its presence in each district in the years to come, he said.
At present, the company has a presence in 162 towns. This would be increased to 200 towns during the current financial year, he said.
To a query on its presence in Karnataka, Chada said the company has around seven dealership outlets in the State. It wants to have a total of 12 such outlets by the end of this fiscal, he said.
The company sold around 46,000 used cars during 2012-13, recording a growth of 35 per cent over the previous fiscal. It achieved this growth in spite of a slowdown in the economy, Chada said.
During the current year, the company wants to reach the target of selling around 60,000 used cars, he said.
Mahindra First Choice offers warranty on the cars it sells. In its ‘Warrantyfirst’ scheme, components concerned are covered for 12 months or 15,000 km, whichever is earlier. In its ‘Certifirst’ scheme, the warranty covers the car’s engine and transmission for six months or 7,500 km, whichever is earlier, he said.
Desmond Miranda and Praveen Pinto, Partners of Car Square (the authorised dealership of Mahindra First Choice), were present on the occasion.
Addressing presspersons on the sidelines of the inauguration of a dealership in Mangalore, Yatendra Chada, Vice-President, Retail (Franchisee), Mahindra First Choice Wheels Ltd, said the company has around 260 dealership outlets in the country. Around 100 more outlets would be opened during the current financial year, he said.
The company, which aims to expand the number of outlets to 500 in the next three years, wants to ensure its presence in each district in the years to come, he said.
At present, the company has a presence in 162 towns. This would be increased to 200 towns during the current financial year, he said.
To a query on its presence in Karnataka, Chada said the company has around seven dealership outlets in the State. It wants to have a total of 12 such outlets by the end of this fiscal, he said.
The company sold around 46,000 used cars during 2012-13, recording a growth of 35 per cent over the previous fiscal. It achieved this growth in spite of a slowdown in the economy, Chada said.
During the current year, the company wants to reach the target of selling around 60,000 used cars, he said.
Mahindra First Choice offers warranty on the cars it sells. In its ‘Warrantyfirst’ scheme, components concerned are covered for 12 months or 15,000 km, whichever is earlier. In its ‘Certifirst’ scheme, the warranty covers the car’s engine and transmission for six months or 7,500 km, whichever is earlier, he said.
Desmond Miranda and Praveen Pinto, Partners of Car Square (the authorised dealership of Mahindra First Choice), were present on the occasion.
Punjab approves four milk plants worth Rs 250 crore each
New Delhi: The Government of Punjab gave its approval to the expansion plan of state-owned Milkfed entailing setting up of four mega milk plants worth Rs 250 crore (US$ 44.83 million) each in the state.
The aim is to make Verka as a largest selling brand and that could be realised only by giving a big push to expansion of Milkfed, said Mr Sukhbir Singh Badal, Deputy Chief Minister of Punjab, Government of India.
The expansion plan would focus on right from encouraging dairy sector, setting up organised dairy farms, reorienting procurement of raw milk, scientific collection and chilling chain, ultra-modern milk processing facilities, value addition of milk products and effective marketing network to exploit the brand image of Verka, added Mr Badal.
In order to strengthen dairy sector at the grass root level, a specialised scheme for encouraging women in the sector that would provide subsidised loan to them to set up farms, technical help for setting up of dairy farms and support to such units by providing veterinary care and farm feed to dairy entrepreneurs in order to strengthen dairy sector from grass root level has also been approved.
Mr Badal asked Mr S K Sandhu, Principal Secretary Cooperative to put up a proposal for giving dairy sector an equivalent status as of agriculture for the purpose of bank credit.
“We have to increase the processing capacity four-fold and these plants should be of international standards with ISO 9002 specifications,” said Mr Badal. He further highlighted that the new diversification plan has a special incentive for the farmers who would switch over from paddy or wheat farming to complete fodder farming.
The aim is to make Verka as a largest selling brand and that could be realised only by giving a big push to expansion of Milkfed, said Mr Sukhbir Singh Badal, Deputy Chief Minister of Punjab, Government of India.
The expansion plan would focus on right from encouraging dairy sector, setting up organised dairy farms, reorienting procurement of raw milk, scientific collection and chilling chain, ultra-modern milk processing facilities, value addition of milk products and effective marketing network to exploit the brand image of Verka, added Mr Badal.
In order to strengthen dairy sector at the grass root level, a specialised scheme for encouraging women in the sector that would provide subsidised loan to them to set up farms, technical help for setting up of dairy farms and support to such units by providing veterinary care and farm feed to dairy entrepreneurs in order to strengthen dairy sector from grass root level has also been approved.
Mr Badal asked Mr S K Sandhu, Principal Secretary Cooperative to put up a proposal for giving dairy sector an equivalent status as of agriculture for the purpose of bank credit.
“We have to increase the processing capacity four-fold and these plants should be of international standards with ISO 9002 specifications,” said Mr Badal. He further highlighted that the new diversification plan has a special incentive for the farmers who would switch over from paddy or wheat farming to complete fodder farming.
Shree Ganesh Jewellery House enters into joint venture with Rocks Creation of Bangladesh
Kolkata: Shree Ganesh Jewellery House (SGJH) has entered into a joint venture with Rocks Creation Limited of Dhaka, Bangladesh for manufacture of gold jewellery, both plain and studded with diamonds and other precious and semi-precious stones.
SGJH has clocked a 28% increase in turnover to Rs 12971 crore and a net profit of Rs 462 crore in FY13 as compared to Rs 461 crore in FY12.
During the fourth quarter of FY13, Alex Astral Power Private Limited, Group Company of SGJHL has received Indian Industrial Excellence Award organized by IREDA towards one of the best PLF (Power Load Factor) generating Company.
The company has formed a 100% subsidiary in Ghana for procurement of Dore Gold / Unrefined gold for further refining in India. Current order book size stands at Rs 2500 crore.
Commenting on the performance of FY13, Mr Umesh Parekh, managing director of said,: 'I am happy to inform that we had a great financial year as company revenue increased by 28%. The market witnessed dynamism this year with gold price fluctuations. Retail sales in India picked up significantly in the third quarter, with Diwali and a prolonged marriage season driving growth. Middle East continues to be our global market focus. To explore the emerging market in Bangladesh we have entered into a joint venture to set up a manufacturing unit at Dhaka in Bangladesh. Also, through our subsidiary at Ghana, we are planning for procurement of dore gold for refining in India."
SGJH has clocked a 28% increase in turnover to Rs 12971 crore and a net profit of Rs 462 crore in FY13 as compared to Rs 461 crore in FY12.
During the fourth quarter of FY13, Alex Astral Power Private Limited, Group Company of SGJHL has received Indian Industrial Excellence Award organized by IREDA towards one of the best PLF (Power Load Factor) generating Company.
The company has formed a 100% subsidiary in Ghana for procurement of Dore Gold / Unrefined gold for further refining in India. Current order book size stands at Rs 2500 crore.
Commenting on the performance of FY13, Mr Umesh Parekh, managing director of said,: 'I am happy to inform that we had a great financial year as company revenue increased by 28%. The market witnessed dynamism this year with gold price fluctuations. Retail sales in India picked up significantly in the third quarter, with Diwali and a prolonged marriage season driving growth. Middle East continues to be our global market focus. To explore the emerging market in Bangladesh we have entered into a joint venture to set up a manufacturing unit at Dhaka in Bangladesh. Also, through our subsidiary at Ghana, we are planning for procurement of dore gold for refining in India."
Gujarat SMEs increase IT spending by 20%
Ahmedabad: While their larger counterparts may be going slow on information technology (IT) spending, small and medium enterprises (SMEs) in Gujarat are raising their IT spend. According to IT hardware and software component providers, there has been a 15-20 per cent increase in IT spending among SMEs in the state in the past six months.
"These days, large industries are pretty cautious as far as increasing their IT spending is concerned. However, SMEs are not so prone to global economic upheavals and are growing domestically. Hence, they have increased their expenditure on IT infrastructure in a bid to become more competitive," says K J Thakker, committee member and immediate past president of the Ahmedabad Computer Manufacturers' Association.
Having increased their IT infrastructure budgets, in both hardware and software, a typical SME with sales revenues of Rs 50-100 lakh now spends around Rs 100,000 a year on IT. Further, an SME with a turnover of Rs 5-10 crore spends around Rs 10-12 lakh per year on IT expansion.
According to Rushabh Mehta of Ahmedabad-based Techniks Infotech, the rise in IT spending is also explained by clients' demands for advanced automation and operational efficiency through the use of industry-specific software.
Among SMEs, auto-ancillaries and engineering industries, followed by BFSI (banking, financial services and insurance), pharmaceuticals, telecom and textiles have seen some of the highest increases in IT spending.
"Both overseas and domestic clients have been demanding use of advanced ERP systems and other software. Plus, SMEs in Gujarat have become more aware of international standards in software upgradation, and are leaving no stone unturned to match those standards. Moreover, SMEs are more flexible than large enterprises as far as hiking the IT budget is concerned," Thakker added.
Investing in IT infrastructure has become an integral part of doing business today, said Himanshu Nandasana, managing director of Rajkot-based Bhavani Industries, which makes transmission components. "We are continuously investing in IT infrastructure. It improves our operational efficiency, and we keep ourselves abreast of new software available in the market, especially in the engineering and designing space."
He added that apart from the bigger companies, even smaller and medium-sized component manufacturers and engineering firms in Rajkot are changing with the times and investing in IT.
"These days, large industries are pretty cautious as far as increasing their IT spending is concerned. However, SMEs are not so prone to global economic upheavals and are growing domestically. Hence, they have increased their expenditure on IT infrastructure in a bid to become more competitive," says K J Thakker, committee member and immediate past president of the Ahmedabad Computer Manufacturers' Association.
Having increased their IT infrastructure budgets, in both hardware and software, a typical SME with sales revenues of Rs 50-100 lakh now spends around Rs 100,000 a year on IT. Further, an SME with a turnover of Rs 5-10 crore spends around Rs 10-12 lakh per year on IT expansion.
According to Rushabh Mehta of Ahmedabad-based Techniks Infotech, the rise in IT spending is also explained by clients' demands for advanced automation and operational efficiency through the use of industry-specific software.
Among SMEs, auto-ancillaries and engineering industries, followed by BFSI (banking, financial services and insurance), pharmaceuticals, telecom and textiles have seen some of the highest increases in IT spending.
"Both overseas and domestic clients have been demanding use of advanced ERP systems and other software. Plus, SMEs in Gujarat have become more aware of international standards in software upgradation, and are leaving no stone unturned to match those standards. Moreover, SMEs are more flexible than large enterprises as far as hiking the IT budget is concerned," Thakker added.
Investing in IT infrastructure has become an integral part of doing business today, said Himanshu Nandasana, managing director of Rajkot-based Bhavani Industries, which makes transmission components. "We are continuously investing in IT infrastructure. It improves our operational efficiency, and we keep ourselves abreast of new software available in the market, especially in the engineering and designing space."
He added that apart from the bigger companies, even smaller and medium-sized component manufacturers and engineering firms in Rajkot are changing with the times and investing in IT.
Govt gets 12 proposals worth Rs 5,000 cr
Mumbai: The proposals are from telecom equipment, consumer electronics, solar panels, LED manufacturing and semi-conductor assembly-test-mark-pack companies, Ajay Kumar, Joint IT Secretary, Department of Electronics and Information Technology, told Business Line.
These were received under the Department’s Modified Special Incentive Package Scheme (M-SIPS), he added.
“When I say proposals, these are proposals for which funds are tied up. In fact, Rs 2,000 crore worth of proposals were received last week. There are several other companies that are in advanced stages of finalising their proposals, but we have not considered them yet,” said Kumar.
He, however, did not name the 12 companies.
Recently, telecom minister Kapil Sibal was quoted as saying that Bosch Electronics and Samsung have applied for the M-SIPS scheme.
Target set
The Department has set a target of accepting proposals worth Rs 25,000 crore by the current fiscal-end, Kumar said. By 2020, the Government intends to bring in investments of about $100 billion in the electronic equipment manufacturing industry, through its ‘National Policy on Electronics 2012’.
Under the M-SIPS, the Government will provide up to Rs 10,000 crore in benefits to the industry between 2012 and 2017 for promoting the production of electronics products and components.
The scheme will provide subsidy for investments in capital expenditure with a limit of 20 per cent for investments in the Special Economic Zone and 25 per cent in non-SEZs. Investors will also get reimbursement of countervailing duties and excise for capital equipment for units set up outside the SEZs. The incentives would be provided for firms engaged in electronic design and manufacturing.
According to a 2009 task force report, the demand for electronics hardware in India is set to go up to $400 billion by 2020, but at the current growth rate, the domestic industry would be able to cater to demand worth $104 billion, while the rest would need to be imported.
These were received under the Department’s Modified Special Incentive Package Scheme (M-SIPS), he added.
“When I say proposals, these are proposals for which funds are tied up. In fact, Rs 2,000 crore worth of proposals were received last week. There are several other companies that are in advanced stages of finalising their proposals, but we have not considered them yet,” said Kumar.
He, however, did not name the 12 companies.
Recently, telecom minister Kapil Sibal was quoted as saying that Bosch Electronics and Samsung have applied for the M-SIPS scheme.
Target set
The Department has set a target of accepting proposals worth Rs 25,000 crore by the current fiscal-end, Kumar said. By 2020, the Government intends to bring in investments of about $100 billion in the electronic equipment manufacturing industry, through its ‘National Policy on Electronics 2012’.
Under the M-SIPS, the Government will provide up to Rs 10,000 crore in benefits to the industry between 2012 and 2017 for promoting the production of electronics products and components.
The scheme will provide subsidy for investments in capital expenditure with a limit of 20 per cent for investments in the Special Economic Zone and 25 per cent in non-SEZs. Investors will also get reimbursement of countervailing duties and excise for capital equipment for units set up outside the SEZs. The incentives would be provided for firms engaged in electronic design and manufacturing.
According to a 2009 task force report, the demand for electronics hardware in India is set to go up to $400 billion by 2020, but at the current growth rate, the domestic industry would be able to cater to demand worth $104 billion, while the rest would need to be imported.
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