Vaishnaw asks electronic industry to invest on design

New Delhi: Union Minister for Electronics and Information Technology Ashwini Vaishnaw on Monday warned the electronics industry that the Centre may stop disbursement of funds under the Electronics Components Manufacturing Scheme (ECMS) if beneficiaries fail to invest in product design technology and meet Six Sigma standards.

His statement comes even as the Ministry of Electronics and Information Technology (MeitY) has approved 29 applications under the scheme with a cumulative investment of Rs 7,104 crore.

The Minister was addressing an event organised jointly by the Ministry and ICEA (India Cellular & Electronics Association) to hand over approval letters to the 29 selected applicants.

Insisting that the country needs to focus on electronics design, component design, and machine design, Vaishnaw said, “Over a period of time, those who do not invest in design will be weeded out. We will make sure that they are weeded out. I am saying this very bluntly and openly because it is very, very important for our nation.”

The Minister has given the industry a 15-day deadline to update the government on the steps taken towards the key requirements — product design, Six Sigma standards, talent development, and local sourcing. Six Sigma is a methodology aimed at minimising defects and ensuring near-perfect output.

Vaishnaw said that all 75 applications approved till date under ECMS will have to share their plans within 15 days.

MeitY Secretary S Krishnan said the fresh investment proposals will create as many as 14,246 new jobs in the segment.

He added that the 29 new applications will lead to the production of electronics components worth Rs 84,515 crore.These companies will manufacture products including display modules, antennas, capacitors, connectors, heat sinks, Li-ion cells, relays, resistors, and transducers.

With this new set of approvals, MeitY has cleared a total of 75 applications under ECMS, amounting to an expected investment of Rs 61,671 crore and expected direct employment for 65,040 persons.

“The 4th tranche of approvals under the ECMS is a welcome step towards strengthening India’s electronics manufacturing ecosystem. The scheme has generated strong industry confidence and is encouraging fresh investments in the components segment, which is critical for enhancing domestic value addition.

Continued policy support, ease of doing business, and a stable, long-term framework will further enable the industry to scale and integrate with global value chains. We remain confident that such initiatives will significantly contribute to positioning India as a global electronics manufacturing hub,” said Pankaj Mohindroo, Chairman, ICEA in a statement.