EDF 0f Rs.10,000 crore or More Becoming Operational From Sept. To Support Electronics Manufacturing

The Sector Received Rs.110,000 crore Investment In Last 12 Months: Ministry Of Communications & IT

The government on Friday informed that the Electronics Development Fund (EDF) will become operational from next month onwards to support venture capitalists to fund electronic manufacturing in general and LED in particular and added that in the last 12 months, Rs.1,10,000 crores of domestic and overseas investment have been committed through the MSIPS scheme of Department of Telecommunications and Department of Electronics and IT in the electronics sector under the government's Make in India initiative.

The cabinet approval for the EDF has been obtained very recently by the Ministry of Communications and Information Technology and a leading financial institution is being identified through which the EDF disbursements would be made, said its Additional Secretary, Dr. Ajay Kumar without disclosing its identity.

Inaugurating a Conference on Make in India: Bright Prospects of LED Manufacturing organized by PHD Chamber of Commerce and Industry, Dr. Kumar disclosed that the basic objective of putting the EDF in place was to promote electronics making in India - a zero import product.

Dr. Kumar did not disclose the size of EDF, pointing out that it would be totally market driven, depending upon the involvement of venture capitalists and its fund disbursement should take place following suggestions from the lead financial institutions, the name of which cannot be disclosed now, though the government had earlier visualized its size roughly at Rs.10,000 crore through MSIPS scheme.

Similarly, the government would also put in place the national centre flexible electronics as also encourage by way of financial assistance the electronics making in India, emphasizing innovations and research through one of the leading institutions of technology.

The ten per cent annual subsidy on electronics would continue to encourage its manufacturing as also the government would go on incentivizing the electronics making through various duty and import tariff reliefs.

The Secretary also informed that besides attracting an investment of Rs.1,10,000 crores in the electronic sector in the last one year, India has also been able to receive electronics manufacturing proposals from 20-25 overseas companies and domestic companies that had no exposure to the sector has begun to diversify into it in view of its potential.

In his welcome remarks, President, PHD Chamber Mr. Alok B. Shriram pitched for lower certification fee or charges to obtain BIS standards especially for MSME segment in the electronics as such charges currently are quite exorbitant.

Powered by Capital Market - Live News