Government earmarks Rs 3.6 crore incentives for electronic manufacturers.

NEW DELHI: To provide impetus to electronics sector, the government has earmarked cash incentives worth Rs 3.59 crore for manufacturers, over the period of three years.

"There will be national awards in ESDM (Electronic System Design & Manufacturing) sector to encourage and recognise companies doing well in the field of manufacturing. It will be held every year. Initial outlay is about Rs 3.59 crore for 3 years," DEITY Joint Secretary Ajay Kumar told PTI.

This will be first award from government for electronics system design and manufacturers. Department of Electronics and Information Technology (DEITY) has award scheme for various departments in the field of e-governance.

The proposed national award will be given in categories which include exports, innovation, fastest growing company, fastest growing small and medium company, best electronics manufacturing cluster, start-up, exemplary work (only recognition, no cash prize) and best among companies set up after ESDM policies.

At present, India imports almost 90 per cent of electronic products to meet demand of the domestic market.

Imports are expected to grow by USD 300 billion by 2020 in absence of corrective measures. To curb this threat, Indian government has announced National Policy on Electronics, modified special incentive package and electronics manufacturing cluster schemes.

Recently, the government approved setting up of first two electronic chip manufacturing plants in the country entailing investment of about Rs 63,000 crore to address economic and security challenge posed by import of electronic products.

Source : economictimes.indiatimes.com