India to set up electronics development fund: Minister

The government will set up electronics development fund to support manufacturing of electronics products that would help create 28 million new jobs and reduce imports, Communications and IT Minister Ravi Shankar Prasad said Tuesday.

Talking to reporters here, Prasad said the government will provide subsidies to encourage manufacturing of electronics products in the country.

On the size of the proposed fund, Prasad said: "It is in an initial stage. We are working out the details."

"Electronics manufacturing is going to be one of the priority areas of the government...2 crore 80 lakh people are expected to get jobs in electronics manufacturing sector," he said.

Prasad said the government has identified eight eight new areas for Modified Special Incentive Subsidy Scheme.

These areas are located at Ghaziabad (Uttar Pradesh), Vadodara and Gandhinagar (Gujarat), Nagpur, Nasik, Aurangabad and Thane (Maharashtra).

The government has also decided to promote development of Green Field Electronic Manufacturing Clusters in Bhopal, Bhubaneshwar, Hyderabad, Maheshwaram, Bhiwadi, Jabalpur, Hosur and Kakianada.

Prasad, who also holds the law portfolio in the Narendra Modi-led central government, said soon India would be making chips. To encourage chip manufacturing, the government has decided to set up semiconductor wafer fabrication (fab) manufacturing facilities in the country.

Fab manufacturing is essential for chip-making industry. Currently there is no chip-making facility in India.

"Fab manufacturing is going to be an important area. We have decided that we will promote fab manufacturing on a priority basis," he said.

Prasad said the government is in the process of working out a transparent arrangement for the spectrum related issues, keeping in view the twin objectives of consumer welfare and the country's growth in the field of mobile telephony.

The minister said the government has outlined a plan to revive the public sector telecom service providers BSNL and MTNL.

To improve telecom network in the northeastern region, Prasad said around 8,000 mobile towers would be set up at an estimated cost of Rs.5,000 crore.

Prasad said in-principle approval has been given for a nation-wide Mobile Network Portability (MNP) and its implementation would begin after Telecom Regulatory Authority of India submits its recommendations.