New Delhi, Feb 20 (KNN) Electronic Industries Association of India (ELCINA) has welcomed the announcement of New Electronics Policy (NPE 2019) as approved by cabinet.

Industry expects that this policy would address the concerns of domestic manufacturers and overcome the gaps experienced in the NPE 2012.

While National Policy on Electronics 2012 (NPE 12) contained a wide range of promotional schemes for investment promotion, infrastructure creation, skill development, promoting R&D and more, it was constrained by procedural complications.

The policy experienced a lack of tenacity in the implementation of its key schemes and sporadic flow of funds to the applicants with limited success.

“The first priority must be aggressive promotion of value added manufacturing with strong support for manufacturing to components, EMS and ATMP of Semiconductors” said Amrit Manwani, President ELCINA.

This should be further driven by phased manufacturing programs which had demonstrated success in the mobile handset sector.

Secretary General of ELCINA, Rajoo Goel said “NPE 2019 must address the shortcomings of the previous flagship Schemes and we must gain from the earlier experience of NPE 2012, especially with respect to MSIPS and EMC Schemes.”

He further added, “we must have a target to achieve 5x5 growth, ie. 5 times in next 5 years in electronic components, especially the Passive, Interconnection and Electromechanical components which were the low hanging fruits.”

NPE 2019’s thrust on fabless chip design, automotive electronics and power electronics for the mobility and strategic electronics industry is a step in the right direction and would further strengthen the sector.

Setting up of a Sovereign Patent Fund to acquire IPs for IC chips and some commonly used product IPs would support Indian MSME entrepreneurs by making this technology available at a very low cost.

Interest subvention scheme and Credit guarantee schemes are also focused on MSME’s and will help in mobilizing investments in the sector by domestic players.

However, these Schemes are not likely to compensate for the 25% subsidy benefits provided under the earlier MSIPS Scheme. ELCINA believes MSIPS benefits should be extended to at least high value added electronics manufacturing and for MSME’s.

The Policy takes forward the initiatives of NPE 2012 and aims to promote domestic manufacturing and export in the entire value-chain of ESDM sector.

It is also expected to give a thrust to economic development by achieving a turnover of USD 400 billion (approximately INR 26,00,000 crore) by 2025 and generating 10 million additional jobs. (KNN/JM)