Govt okays Rs 3,300 crore investments in electronics sector
Government passed proposals worth Rs 3,300 crore in the electronics sector. Bosch and Samsung were among the first one in which the proposals have been approved.
July 12, 2013 / 20:40 IST
Investments from Bosch and Samsung were among the first set of Rs 3,300 crore proposals under National Policy on Electronics approved by the government today.
The investment proposals cleared by government for electronics production include Rs 544 crore from Bosch Electronics in automotive electronics segment, Rs 406 crore from Samsung Electronics for manufacturing of mobile phones in the country and Rs 11.1 crore from Indian firm Sahasra Electronics for manufacturing LED lights in Noida. Investment proposals amounting to Rs 2,327 crore for setting three new electronics clusters-specific zone which will house entire eco-system required to develop electronic products, were also approved.Also read: Bill will benefit over 75% of rural households: Deora"This is first tranche of investment where we have moved forward with around Rs 1,000 crore. We have firm applications of Rs 4,600 crore. As we move forward, in a month or so we will clear that because now we have set up parameters for clearance as well," Telecom Minister Kapil Sibal said here. He added that government has set a target to attract investment of Rs 25,000 crore by end current fiscal. "These (Rs 4,600 crore proposals) will be processed within next 4 to 6 weeks," DIETY secretary J Satyanarayana said.Samsung and Bosch will each get 25 percent subsidy benefit while Sahasra will get 20 percent benefit on investment under the policy.Later in the day, steering committee at Department of Electronics and Information Technology in-principle approved investment proposal amounting to Rs 2,327 crore for setting three new electronics clusters-specific zone which will house entire eco-system required to develop electronic products. "Application of APIIC (Andhra Pradesh Industrial Infrastructure Corporation) for setting two cluster in Andhra Pradesh and one of GMR Infrastructure has been in-principle approved by steering committee," DEITY Joint Secretary Ajay Kumar said.APIIC has proposed to set up a cluster in Hyderabad spread across 602.36 acres and another over 310 acres cluster in Maheshwaram. GMR had applied for 527 acre electronics cluster in Hosur district of Tamil Nadu."Investments have come forward in these clusters. This also shows investors are realising that great market opportunity in electronics sector in this country," Sibal said. Talking about total investment proposals, Kumar said:"These are firm applications. These are in the field of consumer electronics, handheld devices, strategic electronics, LED, telecom products, electronics components and ATMP (Assembly, Test, Marking and Packaging)." Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
