The Union Cabinet has established a committee to identify technology and potential investors for setting up 2 semiconductor wafer fabs for manufacturing IC chips in India.
The team members of Empowered Committee comprises Adviser to PM on Public Information, Infrastructure and Innovation; Chairman, National Manufacturing Competitiveness Council (NMCC); Secretary, Department of Expenditure; Member (Industry), Planning Commission; Dr. M. J. Zarabi, Former CMD, Semiconductor Complex Ltd. (SCL) - Technical Expert and Secretary, DIT - Member Convenor has been set up. The Empowered Committee may co-opt any other experts. The committee is given the date of 31st July 2011 to submit its report.
The background of this decision is based on the recommendation of Committee comprising of The Chairman, National Manufacturing Competitiveness Council (NMCC) and Adviser to Prime Minister on Public Information Infrastructure and Innovation and including the Member Secretary, NMCC; Secretary, Information Technology and Secretary, Telecommunications.
The five recommendations made includes:
1. Set up Semiconductor Wafer Fabs
2. Create policies for preferential access to "Manufactured-in-lndia" "Indian Products" electronics goods for all government procurements and procurement by Government Licensees
3. Set up a dedicated "Electronic Development Fund"
4. Set up of a National Electronics Mission (NEM)
5. Encourage manufacture of specific high priority electronic product line in India by providing capital grant and creation of electronic manufacturing clusters.
The release states the recommendations of the Committee referred to above have been examined in detail in a series of inter-ministerial meetings and appropriate proposals are being evolved for approval of the competent authority on each of these recommendations.
The beneficial factors mentioned in the release includes:
1. Electronics hardware industry is capital intensive and is facing several disabilities and barriers Therefore, the proposal will have significant impact in resolving these issues and help Indian electronics hardware industry to develop localized content/ value addition.
2. The Rough Order of Magnitude (ROM) of investment for the two semiconductor wafer fabs (Fab-1 and Fab-2) is estimated at to be Rs.25,000 Crore (approximately US$ 5 Billion). The exact level of government support could be finalized by way of negotiations.
3. The Indian electronics hardware industry and the Indian economy would benefit directly form this proposal. The Semiconductor Wafer Fabs will have catalytic impact on development of downstream and upstream products, including ancillaries. It would have sizable impact on the development of IT/ITES sector particularly in Very Large Scale Integration (VLSI) chip design software, solutions and services. It will also bootstrap innovation and R&D, especially in the area of semiconductors and others. It will help generating employment of the order of about 3 Crore (direct and indirect) by 2020 across various levels of competencies.
This committee formation is in line with Union Government's goal to increase share of manufacturing in GDP from 16% to 25% over a ten-year period.
The team members of Empowered Committee comprises Adviser to PM on Public Information, Infrastructure and Innovation; Chairman, National Manufacturing Competitiveness Council (NMCC); Secretary, Department of Expenditure; Member (Industry), Planning Commission; Dr. M. J. Zarabi, Former CMD, Semiconductor Complex Ltd. (SCL) - Technical Expert and Secretary, DIT - Member Convenor has been set up. The Empowered Committee may co-opt any other experts. The committee is given the date of 31st July 2011 to submit its report.
The background of this decision is based on the recommendation of Committee comprising of The Chairman, National Manufacturing Competitiveness Council (NMCC) and Adviser to Prime Minister on Public Information Infrastructure and Innovation and including the Member Secretary, NMCC; Secretary, Information Technology and Secretary, Telecommunications.
The five recommendations made includes:
1. Set up Semiconductor Wafer Fabs
2. Create policies for preferential access to "Manufactured-in-lndia" "Indian Products" electronics goods for all government procurements and procurement by Government Licensees
3. Set up a dedicated "Electronic Development Fund"
4. Set up of a National Electronics Mission (NEM)
5. Encourage manufacture of specific high priority electronic product line in India by providing capital grant and creation of electronic manufacturing clusters.
The release states the recommendations of the Committee referred to above have been examined in detail in a series of inter-ministerial meetings and appropriate proposals are being evolved for approval of the competent authority on each of these recommendations.
The beneficial factors mentioned in the release includes:
1. Electronics hardware industry is capital intensive and is facing several disabilities and barriers Therefore, the proposal will have significant impact in resolving these issues and help Indian electronics hardware industry to develop localized content/ value addition.
2. The Rough Order of Magnitude (ROM) of investment for the two semiconductor wafer fabs (Fab-1 and Fab-2) is estimated at to be Rs.25,000 Crore (approximately US$ 5 Billion). The exact level of government support could be finalized by way of negotiations.
3. The Indian electronics hardware industry and the Indian economy would benefit directly form this proposal. The Semiconductor Wafer Fabs will have catalytic impact on development of downstream and upstream products, including ancillaries. It would have sizable impact on the development of IT/ITES sector particularly in Very Large Scale Integration (VLSI) chip design software, solutions and services. It will also bootstrap innovation and R&D, especially in the area of semiconductors and others. It will help generating employment of the order of about 3 Crore (direct and indirect) by 2020 across various levels of competencies.
This committee formation is in line with Union Government's goal to increase share of manufacturing in GDP from 16% to 25% over a ten-year period.
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