The government is inviting applications for the Rs 50,000 crore inventive scheme to attract global mobile device makers and boost local companies to manufacture more electronic products. Speaking exclusively with CNBC-TV18 Managing Editor Shereen Bhan, IT and Telecom Minister Ravi Shankar Prasad clarified that the incentive announced is pro-India and not against any particular country.

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Prasad was replying to a query on whether the border Indo-China border dispute would affect Chinese investments in India. He lamented that the aim of the scheme is to attract top five global mobile manufacturing companies and promote five local companies that will be identified through a screening process.

"There is a total incentive of Rs 50,000 crore and there are five-six large companies that control 80 percent of global mobile market. Initially, we will pick five global champions who under the PLI scheme will be permitted to participate,” he said.

Earlier in day, Prasad launched three schemes - Production-Linked Incentive Scheme (PLI), Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme to boost the sector amid the coronavirus-induced meltdown.

Under the PLI Scheme, 4-6 percent incentive will be provided on incremental sales with 2019-20 being considered as the base year. It is targeted to help mobile manufacturing and production of specific electronic components. SPECS seek to provide a 25 percent incentive on capital expenditure, aimed primarily at component manufacturers. Finally, the EMC 2.0, looks to welcome the entire eco-system around leading manufacturers, looking to develop infrastructure, common facilities and amenities such as Ready Built Factory Sheds and Plug and Play facilities.

The minister clarified that the incentives are industry specific, and not country specific. He assured that “Aatmanirbhar Bharat” was not designed to isolate India but to increase production capacity in the country. He highlighted that the schemes were aimed at bringing incremental investment and new investors in telecom manufacturing. Prasad claimed that every major player will look to come to India given the incentives announced. He asserted that Apple could also look to apply and benefit, under the new schemes.

He stressed that the aim was not only to attract global champions, but to help Indian manufacturers evolve into "champions".

The previous schemes launched by the government boosted investment and manufacturing, Prasad claimed. He recounted how, in 2014, India had only two manufacturing facilities for mobile phones, and that the number now had exceeded 200. He expressed confidence that the newly-launched schemes will attract further investments.

The minister added that big companies, do not travel alone, but attract ancillaries. He assured that the government will look to provide aid and assistance and incentives to ancillary units as well.

Mobile manufacturing was only one facet of electronics manufacturing, he said and expressed hope that the schemes announced will help India become a hub for manufacture medical electronics, catering to global demands. These initiatives by the government would help India manufacture electronic equipment locally, which at present as being currently imported.

As per the minister, various states have extended support to the government for cluster manufacturing schemes and they are competing to put together necessary land banks to house electronics clusters. On the issue of 5G, the minister clarified that efforts were underway only to conduct the 5G trials and that the auction of 5G spectrum would be considered later.

First Published:Jun 2, 2020 10:28 PM IST