Ashwini Vaishnaw warns MeitY may stop approvals, disbursals under ECMS sans design capabilities
Union Minister of Electronics and IT Ashwini Vaishnaw on Monday cautioned that the Ministry of Electronics and Information Technology (MeitY) may stop approving projects and financial disbursals under the Electronics Component Manufacturing Scheme (ECMS) if the industry fails to develop indigenous design capabilities.
“We will have to build in-house design capabilities, and there is no way out of that. That is the learning curve we must climb, then only our country will become the hub of the entire electronics technology,” Vaishnaw said during a press conference on Monday, following the approval of new projects under ECMS entailing an investment of ₹7,104 crore.
The industry, according to the minister, has to mandatorily develop design capabilities in invidual capacities or through technology partnerships. “Over a period of time, those who do not invest in design will be weeded out,” Vaishnaw warned.
India’s displeasure against the India Cellular and Electronics Association (ICEA)-backed industry comes against its severe dependence on foreign machinery and imports of components, according to executives privy to developments.
Under the ambitious programme, the Prime Minister Narendra Modi-led government has approved projects across multiple categories with an investment of ₹61,671 crore against a target of ₹59,350 crore, with potential for production of ₹4.51 lakh crore against the envisaged target of ₹4.56 lakh crore.
The projects, approved to date, can create employment for 65,040 individuals against a target of 91,600 individuals.
Vaishnaw further said companies manufacturing components in India will have to contribute to developing “Swadeshi” (indigenous) supply chains, including by prioritising business with homegrown capital equipment manufacturers.
He strongly recommended that the industry associations and companies organise buyer-seller initiatives once a month.
Vaishnaw further instructed the approved companies, including small & medium enterprises (SMEs), to partner with established players for Six Sigma process capability, adding that the MeitY will seek an update in 15 days.
“I am not really happy with the progress that the industry has made,” he said. “You have to make more progress, you have to take more efforts.”
