What is the Electronics Development Fund Policy in India?

1. What is the Electronics Development Fund Policy?

The electronics Development Fund policy offers a basis for the development of electronics. Electronics Development Fund policy promotes research & development and innovation in sectors of technology such as electronics, IT, and nano-electronics. Electronics Development Fund policy will support Investment Funds and Angel Funds, which will be run professionally and are committed to these markets.

2. What is the period for making an application under the Postal Life Insurance scheme?

The application window shall, in compliance with paragraph 6.1 of the Postal Life Insurance scheme, be 4 months from the date of notification of the Postal Life Insurance scheme. As the notification was released on 01.04.2020, up to 31.07.2020 applications under the Postal Life Insurance scheme will be issued.

3. Can a specified electronic components scheme be eligible under the manufactured for any industry or application?

The items listed in the specified electronic components Scheme target section are agnostic for end-use or application and any company proposing to produce items listed in the specified electronic components scheme (refer to Annex 1 of the Postal Life Insurance scheme Guidelines) is qualified to apply under the Postal Life Insurance scheme, according to the other eligibility and qualification requirements set out in the notification of the scheme and the Postal Life Insurance scheme Guide.

4. What is the duration of the specified electronic components scheme?

For the reception of applications, the specified electronic components scheme shall be open for a total of 3 (three) years from the date of notification. After the scheme was notified on 01.04.2020, applications under the specified electronic components scheme must be submitted in full in all respects by 31.03.2023. No application issued after three years from the date of the specified electronic components scheme notification shall be deemed to be accepted.

5. Will capital expenditure made before the date of application also be considered for determining eligible capital expenditure under the specified electronic components scheme?

Capital expenditure incurred on or after the date of approval of the application and within 5 years of the date of approval of the application shall be regarded only for the purpose of assessing the eligible capital expenditure referred to in the specified electronic components scheme. For the estimation of qualified capital expenditure under the specified electronic components scheme, capital expenditure incurred prior to the date of acknowledgment of the application under the specified electronic components scheme shall not be included.  However, for the calculation of the threshold, capital expenditure incurred prior to the date of the acknowledgment of the application but on or after the date of the application in the accepted list of capital items shall be included.

6. Will the expenditure incurred on Land and Building be considered towards determining eligible capital expenditure under the specified electronic components scheme?

No, the expenditure incurred on the land and development (including the development/construction of the factory) needed for the project/unit is not covered and would therefore not be included in calculating the Scheme's qualifying capital expenditure.

7. Can an applicant make more than one application under a specified electronic components scheme?

There is no limitation on any applicant under the specified electronic components scheme from making multiple applications. Processing facilities at one or more proposed sites may be included in a Project / Unit proposed under the specified electronic components scheme.

8. Can there be more than one Anchor Unit in an Electronics Manufacturing Cluster Scheme as per the Electronics Manufacturing Cluster scheme?

In order to meet the minimum investment commitment and land purchase/lease requirements as set out in Clause 2.1 of the Electronics Manufacturing Cluster Scheme Guidelines, more than one Anchor Unit may be available.

9. Can a Common Facility Center be built within a new Electronics Manufacturing Cluster project and claim benefits under the Electronics Manufacturing Cluster Scheme for both?

Within a new Electronics Manufacturing Cluster Scheme, a CFC can be constructed. The financial assistance eligible for such CFCs will, however, is considered as part of the overall Electronics Manufacturing Cluster Scheme and will comply with the requirements of the scheme.

10. Is the total size of Ready Built Factory (RBF) sheds limited to 10% as under the Electronics Manufacturing Cluster scheme?

The minimum requirement is 10 percent of the total saleable/leasable land area. Depending on the market/industry requirements, the Project Execution Agency may decide to allocate additional space for Ready Designed Factory sheds.

11. What is the MSIPS scheme and is it still active?

M-SIPS was announced by the Government in July 2012 to offset impairment and attract investments in electronic system design and manufacturing (ESDM) industries in order to encourage large-scale manufacturing in the country. The system offered incentives for capital expenditure projects: 20 percent for Special Economic Zone (SEZ) projects and 25 percent for non-SEZ investments. Until 31 December 2018, applications were received under this framework. However, benefits will be made available for investments covering a period of 5 years from the date of project approval.

12. What is the National Electronics Policy 2019?

The National Electronics Policy is a policy roadmap created to place India as an Electronics Device Design and Manufacturing (ESDM) global hub by promoting and driving the country's capabilities for the production of core components, including chipsets, and creating an atmosphere that enables the industry to compete globally. It aims at promoting domestic manufacturing in the entire ESDM value chain, growing domestic added value and reducing reliance on electronic goods imports, strengthening global trade linkages, facilitating programs and incentive mechanisms to improve ESDM exports, developing capacities in all sub-sectors, and promoting India's Research & Development ecosystem. It is possible to access the policy from here.