VOL XXV, ISSUE 17

15 September 2024

Union Cabinet approves OSAT proposal of Kaynes Semicon to set up in Sanand

Mysuru-based Kaynes Semicon became the fourth company in the country to receive an approval from the Union Cabinet for setting up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat with a Rs. 3,307 crore investment. The capacity of this unit will be 63 lakh chips per day. Fifty percent of the investment, which is Rs. 1,653.5 crore, will come from the Centre, 20% from the Gujarat government, which is Rs. 661.4 crore, and the rest 30% of the investment, which is Rs. 992.1 crore will be made by the company. Kaynes raised funds in December last year for the same. ET was the first to report in March this year that Kaynes will be shelving its plans to set up an OSAT facility in Telangana and that it will be moving to Gujarat instead. Speaking at a press conference in New Delhi, Ashwini Vaishnaw, union electronics and IT minister said, "Today, the Cabinet has approved Kaynes' plant, with a capacity of 6.3 million chips per day. The plant will come up in 46 acres."

Source: By Suaraksha P, https://economictimes.indiatimes.com/, September 03, 2024

India should aim at developing 10 fabs in 10 years: Semi's Manocha

The Indian semiconductor industry should aim at developing at least 10 fabs in the coming decade to become a global powerhouse in this sector, said Ajit Manocha, president and CEO, Semi -- the global semiconductor and electronics body. Manocha said the rise in the number of Outsourced Assembly and Test (OSAT) and Assembly, Testing, Marking, and Packaging (ATMP) units in India, was a step in the right direction. He stressed that the success of Tatas, Micron and other projects announced in India’s semiconductor space was the key in generating interest from the global chip industry. "We must ensure the success of Tata, Micron, and the other recent announcements. When I say 'we,' I mean everyone in the country. Success breeds success, and by making these initiatives thrive, we will attract more big companies. We need to leave no stone unturned in achieving this,” he said.

Source: https://www.business-standard.com/, September 04, 2024

CEO Forum Conference 2024: Empowering MSMEs and Driving the Future of Component Manufacturing in India

ELCINA joined hands with Messe München India (MMI) as its “Partner Association” for electronica-productronica India trade fairs which are the largest trade shows for the electronics industry and machinery for the electronics industry respectively in India.

As a Partner Association, ELCINA co-organizes the CEO Forum to highlight industry issues and opportunities with a view to promoting the ESDM sector, disseminating information and highlighting latest trends. This year the 9^th edition of the CEO Forum had the theme The Great leap forward on Component manufacturing” - with special focus on MSME’s”. The industry leaders deliberated on the subject and shared their vision about the way forward for value added Electronics Manufacturing in India.

Shri Ishtiyaque Ahmed, IRS, Senior Advisor for Industry & Foreign Investment at NITI Aayog, delivered a keynote. He stressed the importance of creating a conducive environment for industry to thrive. He advocated for India to prioritize segments and components to develop its niche in global value chain.

Dr Ajai Chowdhry, Founder HCL & Chairman EPIC Foundation and Dr. Ekroop Caur, IAS, Secretary, Electronics, IT, Bt and S&T, Govt. of Karnataka participated and shared their insights.

Other industry leaders who participated in the CEO Forum included Mr. Atul Lall, President ELCINA, Mr. Sasikumar Gendham, Senior Vice President, ELCINA, Mr. Vinod Sharma, Past President, ELCINA & MD, Deki Electronics Ltd., Mr. Deepak Chadha, CEO – Business Operations, Kaynes Technology India Ltd, Mr. Abhijit Kotnis, President & COO, Dixon Technologies (India) Ltd. , Mr. Jurgen Frickinger, Head of Bavarian Chips Alliance, Digitization, Bayern Innovativ GmbH, Mr. Amrit Manwani, Past President, ELCINA & CMD, Sahasra Electronics, Mr. Satendra Singh, CEO, Syrma SGS, Mr. Takuto Iwanaka, Managing Director, Omron Healthcare Manufacturing India Pvt. Ltd., Mr. Debasish Choudhury, VP and Country Manager, Jabil India.

Source: https://www.linkedin.com/feed/update/urn:li:activity:7241775462576726017

9th India PCB Tech Conference: A key Event for the Future of PCB Manufacturing in India

 As a Partner Association for electronica-productronica India, ELCINA co-organises the India PCB Tech conference with MMI and IPCA, to highlight issues and opportunities in the Printed Circuit board industry which is one of the most critical inputs for the electronics manufacturing eco-system.

ELCINA has been working consistently over the last many years to promote manufacturing of PCB and develop an ecosystem for the PCB value chain. Our objective is to attract investments in PCB manufacturing, enhance the supply of consumables, tools and equipment thus reducing the demand supply gap in the segment.

This year, the 9^th edition of India PCB Tech Conference had the theme Targeting a potential US$ 11.5 Billion PCB Industry by 2030, where industry leaders deliberated on the subject.

Mr. S.K. Marwaha, Scientist G and Group Coordinator at MeitY, expressed optimism about India’s potential in PCB manufacturing. He reiterated MeitY’s commitment to acting as a catalyst for growth through strategic incentives aimed at strengthening the domestic industry through existing and its upcoming scheme for promotion of components and modules.

Mr. Nirmod Kumar, Director (Electronics) at MeitY, introduced the Ministry’s new incentive scheme, focusing on boosting multilayer and HDI PCB manufacturing. He highlighted that the scheme would also support the production of essential raw materials, laying the foundation for a robust domestic ecosystem.

Other speakers & panellists include, Mr. Richard Puthota, Vice President, ELCINA & Sr. Director, MacDermid Alpha Electronics Solutions, Mr. M. Thiyagarajan, President, IPCA & CEO, Nuline Technologies, Mr. Amrit Manwani, CMD, Sahasra Electronics, Mr. Rajneesh Garg – Vice President, IPCA & MD, India Circuits Pvt Ltd, Mr. N Ramachandran, Past President ELCINA & MD, MEL Systems & Services, Mr. Jonas Sjoberg, Associate Director for Global Technical Service & Application Engineering, Indium Corporation, Mr. R S Simha, Director, AT&S (India, Malaysia and Korea), Mr. Pradeep Menon, CEO, Micropack Private Limited, Mr. Neeraj Sachdev, Group Material Head, Uno Minda Limited (User perspective)

Source:https://www.linkedin.com/feed/update/urn:li:activity:7242026550294913024

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  POLICY SCAN                                                                               

1. CBIC Circular No. 13/2024-Customs dated 4th September 2024: Implementation of Automation in Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 for EOUs

The CBIC has issued Circular No. 13/2024-Customs to address the automation implementation for Export Oriented Units (EOUs) under the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022.

Key updates:

• Background: The Circular No. 11/2024-Customs dated August 25, 2024, mandated the automation of certain processes under the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022, effective September 1, 2024.

• ELCINA representation highlights the issues encountered by Export Oriented Units (EOUs) in the implementation of the new automated system under the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022. Challenges such as delays in generation of Importer Identification Number (IIN) details, and bond submissions are causing significant disruptions to the clearance of goods, prompting a request for extension and support from the authorities.

• Revised Implementation Date: In response to the difficulties faced, the implementation of Circular No. 11/2024-Customs for EOUs will be postponed to September 17, 2024. This extension aims to address the concerns raised by the trade.

For details, Circular No. 13/2024-Customs, dated September 4, 2024, members are advised to refer to the official CBIC web sites.

2. CBIC Circular No. 15/2024-Customs dated. 12th September 2024: Extending Export-Related Benefits for Courier Exports

The Central Board of Indirect Taxes & Customs (CBIC) has issued Circular No. 15/2024-Customs to enhance the processing of export-related benefits for shipments made through the courier mode. The circular outlines the updated procedures and system integrations to streamline the process.

Key Points:

• Use of ICES at ICTs:

1. The Indian Customs EDI System (ICES) will now process payments for export benefits like Duty Drawback, RoDTEP, and RoSCTL at International Courier Terminals (ICTs).

2. ICES is integrated with the Public Financial Management System (PFMS) to streamline the process.

• Processing Modalities:

1. Shipping Bills: Authorised couriers must file shipping bills on ICEGATE to claim export benefits.

2. Custodian Registration: ICT custodians must register on ICEGATE for handling export goods and messaging.

3. Goods Handling: Physical handling at ICT; customs clearance processed via ICES.

• Regulatory Amendments:

1. Amendments to the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010, now include Duty Drawback, RoDTEP, and RoSCTL.

2. Courier Export Manifests (CEM) must be filed unless exports are under the benefits schemes, where the Export General Manifest will apply.

These circular aims to enhance the efficiency of processing export-related benefits specifically for electronics exports, addressing the limitations of the previous system and streamlining procedures for courier shipments.

For details, Circular No. 15/2024-Customs dated. 12th September 2024, members are advised to refer to the official CBIC web sites.

3. CBIC Circular No. 230/24/2024-GST dated 10th September 2024:  Government of India Issues Clarification on Advertising Services for Foreign Clients

The Central Board of Indirect Taxes and Customs (CBIC) has issued a new circular providing clarification on the treatment of advertising services provided by Indian agencies to foreign clients. The circular addresses concerns raised by the trade and industry sectors regarding the place of supply for such services and the implications for export benefits.

Key Clarifications:

1. Intermediary Status: Indian advertising companies providing comprehensive advertising services to foreign clients are not considered "intermediaries" under section 2(13) of the IGST Act. These agencies are directly involved in providing advertising services, not merely facilitating the transaction between the foreign client and media owners.

2. Recipient of Services: The foreign client, not any representative or target audience within India, is recognized as the recipient of the advertising services. The recipient is defined as the person liable to pay for the services, which in this case is the foreign client.

3. Place of Supply: The place of supply for these advertising services is determined by the location of the recipient. Since the recipient is located outside India, the place of supply is considered to be outside India, qualifying the services as exports under section 13(2) of the IGST Act.

4. Performance-Based Services: The circular clarifies that the advertising services do not fall under performance-based services as defined in section 13(3) of the IGST Act. These services do not require the physical presence of the recipient or their representative in India for the provision of services.

5. Facilitation vs. Direct Provision: In cases where the Indian advertising company acts solely as a facilitator, and the agreement for media space and broadcasting is between the foreign client and the media owner directly, the Indian company is considered an intermediary. In such scenarios, the place of supply would be determined as per section 13(8)(b) of the IGST Act, based on the location of the advertising company.

For details, Circular No. 230/24/2024-GST, dated September 10, 2024, members are advised to refer to the official CBIC web sites. 

4. CBIC Circular No. 232/26/2024-GST September 10, 2024: Clarification on Place of Supply for Data Hosting Services

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 232/26/2024-GST to clarify the place of supply for data hosting services provided by Indian service providers to cloud computing service providers located outside India.

Key points:

1. Intermediary Status: Data hosting service providers do not qualify as ‘intermediaries’ under Section 2(13) of the IGST Act. They operate independently, managing their own infrastructure and services without acting as brokers or agents between the cloud computing service providers and their end users.

2. Services Related to Goods: The data hosting services are not considered as provided in relation to goods "made available" by the recipient. Thus, Section 13(3)(a) of the IGST Act does not apply, as the cloud computing service provider does not make the infrastructure physically available to the data hosting provider.

3. Services Related to Immovable Property: Data hosting services involve comprehensive service management and are not directly related to immovable property as defined in Section 13(4) of the IGST Act.

4. Default Provision: Since the specific provisions for place of supply do not apply, the default rule under Section 13(2) of the IGST Act is applicable. Therefore, the place of supply for these services will be considered as outside India, making the services eligible for export treatment if other conditions are met.

For details, Circular No. 232/26/2024-GST, dated September 10, 2024, members are advised to refer to the official CBIC web sites. 

5.CBIC Circular No. 233/27/2024-GST dated September 10, 2024: Regularization of Refunds for IGST Paid in Contravention of Rule 96(10)

The CBIC has issued Circular No. 233/27/2024-GST to clarify the regularization of IGST refunds in cases where exporters have imported inputs without payment of integrated taxes and compensation cess.

Key points:

1. Background: Rule 96(10) of the CGST Rules, 2017 restricts the refund of IGST on exports if benefits of certain concessional or exemption notifications were availed on imported inputs.

2. Clarification:

• Retrospective Amendment: Notification No. 16/2020-CT dated March 23, 2020, added an Explanation to Rule 96(10) effective from October 23, 2017. This states that the benefit of the mentioned notifications is not considered availed if only Basic Customs Duty (BCD) was exempted and IGST and compensation cess were paid.

• Implication: If IGST and compensation cess are paid on inputs initially imported without these taxes, the benefits of the notifications are deemed not to have been availed. Thus, refunds of IGST on exports, where IGST and cess were later paid, are not considered in contravention of Rule 96(10)

3. Action Required: Exporters who paid IGST and compensation cess on previously exempted imports should get their Bill of Entry reassessed by Customs authorities. Refunds of IGST on such exports will not be deemed a violation of Rule 96(10).

For details, Circular No. 233/27/2024-GST, dated September 10, 2024, members are advised to refer to the official CBIC web sites. 

6. CBIC Instruction No. 20/2024-Customs Date: 3rd September 2024: Implicating Customs Brokers as Co-Noticees in Interpretative Disputes

The Central Board of Indirect Taxes and Customs (CBIC) has issued Instruction No. 20/2024-Customs to address concerns regarding the routine inclusion of Customs Brokers as co-noticees in show cause notices related to interpretative disputes.

Key Points:

1. Regulatory Framework: Customs Brokers' actions must be addressed under the Customs Brokers Licensing Regulations, 2018 (CBLR, 2018), distinct from proceedings under the Customs Act, 1962. Compliance with Regulations 16 and 17 of CBLR, 2018 is mandatory.

2. Abetment Requirement: Customs Brokers should only be implicated as co-noticees if there is clear evidence of their abetment in the offence. This element of abetment must be clearly detailed in the show cause notice.

This instruction aims to clarify the role of Customs Brokers in customs-related offences and ensure proper adherence to established procedures.

For details, Instruction No. 20/2024-Customs Date: 3rd September 2024, members are advised to refer to the official CBIC web sites. 

7. DGFT Notification No. 25/2024-25 dated 2nd September 2024: Amendment in Appendix 3 (SCOMET Items) to Schedule 2 of ITC (HS) Classification of Export and Import Items, 2018

Key Points:

• Notification Issued: DGFT has issued Notification No. 25/2024-25 on 02.09.2024, amending Appendix 3 (SCOMET Items) to Schedule 2 of ITC (HS) Classification of Export and Import Items, 2018.

• Legal Basis: The amendment is made under Section 5 and Section 14A of the Foreign Trade (Development and Regulation) Act, 1992, and in accordance with the Foreign Trade Policy 2023.

• Details and Access: The updated Appendix 3 will be available on the DGFT web portal under 'Regulatory Updates', 'Import Export', and 'Import, Export and SCOMET policy'.

• Implementation: The notification will take effect 30 days from the date of issuance, providing transition time for the industry.

This update introduces changes to the SCOMET items list, for export and import regulations.

For details, DGFT Notification No. 25/2024-25 dated 2nd September 2024, members are advised to refer to the official DGFT web sites

8. DGFT Public Notice No. 23/2024-25 dated September 12,2024 Extension of Abeyance for Modifications to Wastage Norms and SIONs for gold, platinum, and silver

Key Points:

• Public Notice Issued: DGFT issued Public Notice No. 23/2024-25 on September 12, 2024, extending the abeyance of Public Notice No. 05/2024.

• Background: The original Public Notice No. 05/2024, dated May 27, 2024, aimed to modify the wastage norms and Standard Input Output Norms (SIONs) for gold, platinum, and silver in export items.

• Extension Details: The abeyance period has been extended from August 31, 2024, to October 31, 2024. The decision was influenced by feedback from Industry.

• Current Norms: During the extended abeyance period, existing wastage norms under Paragraph 4.59 of the Handbook of Procedures 2023 and the previous SIONs (M1 to M7) will remain in effect.

This notice indicates a continued suspension of the new wastage norms and SIONs while the DGFT reviews industry feedback and concerns.

For details, DGFT Public Notice No. 23/2024-25 dated September 12, 2024, members are advised to refer to the official DGFT web sites

9. RBI A.P. (DIR Series) Circular No. 16 dated 6th September 2024: Discontinuation of Monthly Return Reporting for Liberalised Remittance Scheme (LRS)

Key Points:

• Discontinuation of Monthly Reporting: Effective from September 2024, Authorised Dealer Category-I (AD Category-I) banks are no longer required to submit the monthly LRS return (Return code: R089) in the Centralised Information Management System (CIMS).

• Circulars Withdrawn: The following circulars are withdrawn with immediate effect:

1. A.P. (DIR Series) Circular No. 36 dated April 04, 2008

2. A.P. (DIR Series) Circular No. 106 dated May 23, 2013

3.  A.P. (DIR Series) Circular No. 23 dated April 12, 2018

4.  A.P. (DIR Series) Circular No. 07 dated June 17, 2021

5. A.P. (DIR Series) Circular No. 11 dated December 22, 2023

This change reduces administrative efforts, making it easier for electronics manufacturing exporters to manage remittances while enhancing overall operational efficiency.

For details, RBI A.P. (DIR Series) Circular No. 16 dated 6th September 2024, members are advised to refer to the official RBI web sites.

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         INDUSTRY  SCAN                                                                             

General

Polymatech Electronics to set up semiconductor facility in Bahrain

Semi-conductor chip manufacturer Polymatech Electronics would invest $16 million in Bahrain to establish a semi-conductor manufacturing facility in the gulf country, the company said. The facility to be set up as 'Atri' in Bahrain Industrial Area - Hidd - would play a critical role in producing essential 5G and 6G components and marks Polymatech Electronic's first step in expanding its global footprint. Polymatech establishing a semiconductor facility in Bahrain is set to usher in a new era of innovation and technological advancement across sectors, contributing significantly to the national economy, he said. The entry of Polymatech into Bahrain would contribute towards the country's economic diversification, sustainable growth and a goal of becoming a hub for innovation and technological excellence in the region.

Source: https://www.business-standard.com/, September 15, 2024

World's Second Largest Mobile Producer, India Emerges as Global Semiconductor Powerhouse

As the global demand for semiconductors continues to surge, India is making significant strides towards establishing itself as a major player in the semiconductor industry. This shift was prominently highlighted at Semicon India 2024, a three-day event held in Greater Noida, which underscores the country’s commitment to becoming a key global semiconductor hub. With semiconductors being deemed the “new oil” of the modern economy, their crucial role in nearly every electronic device makes them a focal point for global economic strategy. Semiconductors are composed of millions of transistors made of silicon that process data such as sounds, images, and radio waves by turning on and off like tiny electrical switches. Consumer and mobile electronics are the largest drivers of semiconductor demand, accounting for about 60% of the global market. Of this, mobile devices alone contribute to 55% of the demand.

Source: By Harshika Yadav, https://www.news18.com/, September 15, 2024

Fab toolmakers eye India; Applied Materials considers manufacturing unit

Fab units globally cannot operate without equipment from four key suppliers — Applied Materials, ASML, KLA and Tokyo Electron, according to experts. With more semiconductor manufacturing units being planned in India, top toolmakers are also eyeing the country’s market. The world's second-largest fab toolmaker, Applied Materials, with annual revenue of $26.52 billion, is planning to establish a manufacturing unit in India. If sources are to be believed, the firm may be looking at Tamil Nadu for its ambitious plans. This is also considered to be a China Plus One strategy, since the company recently lost its top spot as the leading semiconductor equipment maker to ASML. It depends on China for 43 per cent of its sales despite restrictions from the United States. Applied Materials is looking to establish an advanced artificial intelligence (AI)-enabled technology development centre for semiconductor and equipment manufacturing in Taramani, Chennai. This is set to create 500 jobs.

Source: https://www.business-standard.com/, September 08, 2024

UP allots land near Jewar airport for Foxconn-HCL semiconductor JV: Report

The government of Uttar Pradesh has provided 30 acres of land near the upcoming Jewar airport in Noida for HCL Group and Foxconn’s joint venture to develop a semiconductor outsourced assembly and testing unit, The Economic Times reported on September 13. This could be the first such project in the state if it receives green signal from the Centre, the report said, citing sources. The Taiwan-based chipmaker, who has 40 percent stake in the joint venture and is likely to invest $37.2 million, has allowed the Indian IT services firm to pick the location for the unit, the report said. The chip packaging and testing venture, known as OSAT in industry lingo, happened after Foxconn abandoned a joint venture with India’s Vedanta in July last year. On September 11, Union Minister for Electronics and IT Ashwini Vaishnaw said Uttar Pradesh will join Gujarat and Assam in hosting chip units. He was at a press briefing at Semicon India 2024.

Source: https://www.moneycontrol.com, September 13, 2024

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Information Technology

Android users, government has an important warning for you

The India Computer Emergency Response Team (CERT-In) has found new security flaws within Android operating system. The government body has issued an advisory for this classifying it as “High” severity. CERT-In has mentioned in the advisory note that the security flaws found within Android affect multiple versions of it and it can let attackers gain elevated privileges and perform denial of service (DoS) on the targeted device. According to the government body, attackers can leverage the existing vulnerabilities within the Android operating system to target a device and gain privileged access which can result in stealing sensitive data like passwords, banking information, etc. The vulnerability note mentions that the newly found security flaws affect Android 12, Android 12L, Android 14 and Android 14 versions of Android. This means, all the devices including smartphones, tablets, etc running on the said versions are affected.

Source: https://www.moneycontrol.com/, September 15, 2024

IT policy set to roll in by year-end with focus on GCC, jobs, research

More than a decade after the National Policy on Information Technology (NPIT 2012) was introduced, the Union government is readying a new policy with changed goals and benchmarks. The policy is expected to be finalised by the end of this year, according to official sources. The core objectives of the new national IT policy would be to strengthen global capability centres (GCCs), improve engineering research and development (ER&D), and foster employment generation, it is learnt. Increased focus on creating IT products and skilling of the workforce will get attention too. The policy would also have much bigger targets in terms of export of IT products and services. The targets will be defined for a shorter duration of three to five years keeping in mind the dynamic environment of the industry, said a senior government official.

Source: https://www.business-standard.com/, September 09, 2024

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Consumer Electronics

India Overtakes US to Become Second biggest 5G Handset Market

Global 5G handset shipments grew 20% YoY in the first half of 2024, according to the latest research from Counterpoint’s Market Monitor service. India overtook the US to become the world’s second-biggest 5G handset market for the first time, behind China. 5G handset shipments have been growing steadily and with the increased availability of 5G handsets in the budget segment, the emerging markets have witnessed high growth in this segment. India became the second-biggest 5G handset market during the first half, overtaking the US. The strong shipments from Xiaomi, vivo, Samsung and other brands in the budget segment were the main reason for this trend. Other emerging markets also witnessed high growth in 5G handsets. Consumers in emerging markets are looking at 5G handsets as an upgrade to their devices, even in the lower price segments. The Caribbean and Latin America (CALA) region was the fastest-growing region, registering 63% YoY growth, driven by high growth in key countries like Mexico and Brazil.

Source: https://www.counterpointresearch.com/, September 05, 2024

New engineering approach can lead to widespread adoption of Indian consumer electronics

India has risen as a go-to destination for electronics in recent years. The country harbours a large and growing market for electronics, a robust IT sector, a massively skilled labour force, and government initiatives that support its development. In the current scenario, various other components of the sector, including communications, energy efficiency, entertainment, education, and others, are undergoing significant transformation. At the forefront of this change is India, with a market size of a whopping $155 billion as of 2023, with domestic production accounting for 65%. Further, the industry received a boost of 22% in its global exports in the financial year 2024, surpassing the $20 billion mark. Wearable technology has seen notable advancement in the past few years. The smart wearable devices currently available on the market have futuristic sensors, internet connectivity, and even the cloud. This ongoing trend is expected to only increase in the upcoming years, with smartwatches and advanced earphone technology guiding the way ahead.

Source: https://www.expresscomputer.in/, September 13, 2024

TOP

Telecom

TRAI recommends VNOs partner with multiple telecom operators to boost quality of services

Trai has also recommended that a VNO, intending to provide both wireless and wireline access services in a licenced area, should be permitted to take connectivity from one operator for wireless access service and another for wireline access service. The Authority is of the view that the implementation of these recommendations would give a boost to the quality of service of wireline access services in the country. It would also provide a flexibility to Access Service VNOs to obtain connectivity for wireless access service and wireline access service from different NSOs. This would enable Access Service VNOs to provide better service offerings to telecom consumers in the country. In 2016, the Department of Telecommunications (DoT) introduced the regime of Virtual Network Operators (VNOs) in India to provide options for customers. However, so far, there are not too many VNO players in the country due to poor business models.

Source: https://www.thehindubusinessline.com/, September 15, 2024

BSNL, MTNL May Get Another Relief Package: Report

Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) may get another relief package from the Indian government. It is worth noting that in the previous five years, the center has released three relief packages for BSNL. These relief packages have allowed BSNL to survive in India's fierce and competitive telecom landscape. A report from ET suggests that the government is considering a bailout package for public sector enterprises MTNL (Mahanagar Telephone Nigam Limited) and Rashtriya Ispat Nigam (RINL). The report said quoting an official that the government will be paying the bond dues of MTNL. This is not a new thing. Much recently, due to liquidity constraints, when MTNL couldn't pay the bond dues, the government stepped in to clear Rs 92 crores on behalf of the state-owned telecom operator. The steel and telecom ministries are in talks with the finance ministry about a bailout package.

Source: https://telecomtalk.info/, September 13, 2024

Rural broadband project lags over planning glitches

Project hardware and supporting power infrastructure meant for one of the world’s biggest rural broadband projects are stuck in panchayat buildings across India’s villages. Sophisticated broadband gear worth thousands of crores is crammed into rooms along with bags of fertilisers and pesticides under leaky roofs — getting wet, scorched or freezing, depending on the season. The ambitious BharatNet project began 13 years ago in October 2011 under the Congress-led UPA government as the National Optic Fibre Network (NOFN). Renamed BharatNet, it was meant to connect 250,000 gram panchayats and 640,000 villages through broadband to achieve the goal of Digital India. However, costs have surged from the initial Rs 20,100 crore estimated for NOFN. In 2017, the Cabinet pegged phases 1 and 2 at Rs 42,068 crore. In August 2023, this was put at over Rs 1.39 lakh crore, including Rs 65,000 crore for phase 3, which is being implemented by state-run Bharat Sanchar Nigam (BSNL).

Source: https://economictimes.indiatimes.com/, September 14, 2024

 TOP

EV’s & Auto Electronics

Indian EV market to expand at a CAGR exceeding 40% until 2027, says report

The Indian electric vehicle (EV) market is expected to grow in the range of 35 – 40 per cent CAGR till 2027, stated a report by Niveshaay. Currently, the Indian EV market is concentrated on the two and three-wheeler EV segment, which accounts for about 80 per cent of its vehicle market. Per the study, India is expected to record sales of around 3-4 million EVs annually by the year 2025. It added that EVs are expected to penetrate the market with approximately 10-15 per cent of new vehicle sales in India, and this would include two-wheelers, three-wheelers, and passenger vehicles. The growth, it added, will be driven by government incentives, rising fuel prices, and increased consumer awareness. y 2030, annual EV sales are expected to exceed 10 million units, with significant increases in electric buses, commercial vehicles, and private cars. EVs could account for 30-40 per cent of new vehicle sales, supported by an anticipated network of over two million public charging stations across the country.

Source: https://www.financialexpress.com/, September 15, 2024

Electric cars excluded from PM E-DRIVE scheme: Could dent sales further

Under the Centre’s new PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, entailing an outlay of Rs 10,900 crore over two years, fiscal incentives have been extended to electric two- and three-wheelers, buses, trucks, and even ambulances. However, unlike its predecessor, the FAME-2 scheme, the latest subsidy makes a significant omission–electric cars. While electric cars were also left out of the stopgap Electronic Mobility Promotion Scheme (EMPS), introduced in April and set to expire by the end of this month, the industry had hoped the final scheme would include some benefits for four-wheelers. The chorus for subsidies grew louder especially after a marked decline in sales following the conclusion of the FAME-2 programme. With their exclusion now confirmed, the government’s stance is clear–lower GST for electric cars, schemes for localisation of components and batteries, and additional funds for charging stations to address range anxiety are deemed sufficient steps on its part.

Source: By Aggam Walia, https://indianexpress.com/, September 15, 2024

CNG, hybrid cars take expressway to drive past EVs

The Indian car market's adoption of alternative fuels continues to be driven by CNG-run vehicles. Hybrids, too, are outpacing electric vehicles in the country at a time when the global EV market shows signs of stagnation. Sales of CNG cars grew 46% year on year during January-August followed by hybrids at 19% while electric vehicles managed only a 7% growth, data collated by Jato Dynamics showed. The Indian car market is seeing a rise in CNG and hybrid vehicles, outpacing electric cars. CNG car sales grew by 46% from January to August, while hybrids saw a 19% increase. Despite efforts to boost EV adoption, infrastructure challenges and high costs remain barriers.

Source: By Lijee Philip, https://economictimes.indiatimes.com/, September 15, 2024

Govt set to clear ₹10,900 crore for rechristened electric vehicle subsidy scheme

The government is expected to approve a ₹10,900 crore electric vehicle incentive scheme, marking the third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) policy but under a new name, two people with direct knowledge of the matter told Mint. The new scheme, expected to be announced in the cabinet briefing on Wednesday, will focus on boosting the adoption of electric buses, trucks, and e-two and three-wheelers, as well as enhancing charging infrastructure across the country. The scheme, expected to be christened PM e-drive, will allocate ₹4,300-4,400 crore to incentivize electric buses, including inter-city models, making it the largest segment of the subsidy outlay. Additionally, about ₹500 crore each is expected to be earmarked for electric trucks and cars. The scheme could also include e-ambulances and e-police vans to expand EV adoption in critical service sectors. The government had been on the fence about including electric cars in the FAME-III scheme, but Tata Motors Ltd, the country's largest electric carmaker, has been lobbying the Prime Minister's Office for the inclusion of the electric cab segment in the scheme.

Source: By Alisha Sachdev, https://www.livemint.com/, September 11, 2024

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Defence & Solar

India Becomes Armenia’s Largest Defense Supplier

Armenia is increasingly turning to India for military support, making significant purchases of Indian-made weapon systems, including the Akash-1S air defense system, as part of a $2 billion defense partnership signed in 2020. Armenia’s pivot toward India marks a shift away from its traditional reliance on Russian military supplies, in part driven by tensions over Russia’s involvement in Ukraine and allegedly delayed arms deliveries to Armenia. India’s deepening ties with Armenia provide it with a strategic foothold in the South Caucasus, countering Pakistani and Turkish influence in the region while also enhancing its connectivity to European and Eurasian markets. In August, it was reported that Armenia will receive India’s indigenously developed Akash-1S air defense missile system later in 2024. Armenia, which had placed an order for 15 Akash missile systems in 2022 for $720 million, will be the first foreign buyer of the platform.

Source: By  Syed Fazl-e-Haider, https://jamestown.org/, September 12, 2024

India strikes major defense deal with the U.S. amid China's military activity in the region

India is set to finalize a significant deal with the United States next month to purchase 31 MQ-9B "Predator" attack drones. The Indian Ministry of Defense is finalizing the proposal for submission to the Ministry of Finance, and the deal will require final approval from the government's Security Committee, chaired by Prime Minister Narendra Modi. Valued at $3.9 billion (around ₹33,500 crore), the deal covers all key details, including maintenance, repair, and overhaul (MRO), logistical support, and other complex aspects agreed upon during negotiations. The contract is expected to be signed in October, aligning with Prime Minister Modi’s visit to the U.S. for the QUAD leaders’ summit in September. Although the agreement does not include the direct transfer of technology, an important component is the assembly of the drones in India.

Source: By Samir Muradov, https://news.az/news/, September 12, 2024

Rajnath Singh praises 'Tarang Shakti' exercise for boosting global defence ties

Defence Minister Rajnath Singh praised the multinational exercise 'Tarang Shakti' as a significant effort to enhance cooperation, coordination, and trust among partner nations on Thursday. Speaking at the Distinguished Visitors' Day event, Singh emphasised that the exercise reflects India's commitment to strengthening defence ties and fostering a spirit of collective security. He noted the valuable learning that occurs when soldiers from diverse backgrounds and experiences come together in such complex and large-scale exercises. “Different work cultures, air combat experiences, and war-fighting principles contribute to a rich exchange of knowledge and skills,” he added. Singh also pointed to recent advancements in India’s defence sector, including the collaboration between Hindustan Aeronautics Limited and Safran Helicopter Engines. He stressed that India has evolved from being solely an importer of arms to becoming a significant exporter, with defence equipment now reaching around 90 countries.

Source: https://www.indiatoday.in/, September 13, 2024

India Set To Finalise MQ-9B Predator Combat Drone Deal With U.S. Before October 31

The Ministry of Defence is preparing to go to the Cabinet Committee on Security (CCS) for the final nod on the much awaited Predator drone deal which was cleared by the Defence Acquisition Council (DAC) on July 30. The transaction will be with General Atomics of the United States for an estimated amount of USD 3.1 billion. Despite its secrecy over the process of the forced ACA introduction, this author learns that the Cost Negotiation Committee or CNC has settled on the pricing. The next process is having the spending authorized by the finance ministry for the expenditure and then having the acquisition approved by the CCS. Last month, the state assured consumers that it was in a hurry to sign the deal before October 31 because any delays will compel the manufacturer to review the prices. The Modi government is acquiring 31 new hunter-killer MQ-9B Predator drones with air-to-surface missiles and laser-guided bombs from the US’s General Atomics via a government-to-government contract.

Source: https://www.indiandefensenews.in/, September 15, 2024

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MSME

(Special section of the MSME related news under ELCINA Micro & Small Industry Forum)

FinMin asks PSBs to undertake pilot of new credit assessment model for MSMEs 

In line with its Budget announcement earlier this year, the Finance Ministry has asked Public Sector Banks (PSBs) to undertake pilot programmes of the new credit assessment model for MSMEs. The Indian Banks Association (IBA), which has been tasked with the responsibility to come up with the new credit assessment model, official sources said, is expected to launch it before the end of the current fiscal. “Work is happening in full swing. You will see the rollout in the coming days”, they said. Finance and Corporate Affairs Minister Nirmala Sitharaman had, in her Union Budget speech, said that public sector banks will build their in-house capability to assess MSMEs (micro, small, and medium enterprises) for credit instead of relying on external assessment. They will also take a lead in developing or getting developed a new credit assessment model, based on the scoring of digital footprints of MSMEs in the economy, she had said. It will encompass MSMEs without formal accounting systems, the Budget had announced.

Source: By KR Srivats, Richa Mishra, https://www.thehindubusinessline.com/, September 15, 2024

Govt announces relief package for MSMEs hit by flood in Vadodara

The Gujarat government on Thursday declared a relief package for rehabilitation of micro, small and medium enterprises (MSMEs) of Vadodara city and district who suffered losses in the recent floods. The state government spokesperson Rushikesh Patel while speaking to the mediapersons said that a decision in this regard was taken by Chief Minister Bhupendra Patel in a state cabinet meeting Thursday to pay the relief amount to the affected parties from the Chief Minister’s Relief Fund. According to the relief package, those having lorries will be provided with lump sum amount of Rs 5000. Those having permanent small cabin of up to 40 square feet will be paid Rs 20,000. The lump sum relief amount for those having permanent cabins bigger than 40 square feet will be Rs 40,000.

Source: https://indianexpress.com/, September 13, 2024

MSMEs in Coimbatore demand reduction in GST rates

Micro, Small and Medium-scale Enterprises (MSME) representatives, who discussed their demands with officials from the Ministry of MSMEs in Coimbatore on September 10, 2024 (Tuesday), mainly demanded reduction of GST rates for various products made by these units. According to Mithun Ramdas, president of the Southern India Engineering Manufacturers’ Association, following the increase of GST on pumpsets to 18 %, a larger section of the industry had moved to the unorganised sector. The size of the pumpset industry was ₹25,000 crores and of this, the unorganised sector was ₹3,000 crore to ₹5,000 crores. Now, the unorganised sector was worth almost ₹15,000 crores, mainly because of higher GST, he claimed. Representatives from Micro, Small and Medium-scale Enterprises discuss their demands with officials from the Ministry of MSMEs; highlight challenges they face due to logistics and raw material costs.

Source: https://www.thehindu.com/, September 10, 2024

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ELCINA EVENTS , ACTIVITIES & SERVICES 

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ELCINA Publications

https://elcina.com/roadmap-for-developing-pcb-eco-system-in-india	Roadmap For Developing PCB Eco-System in India Key Findings Indian PCB market and industry size in terms of domestic production, exports, and imports Growth drivers and challenges (needs & gaps) in the Indian PCB industry Growth potential of PCB manufacturing in India and identify enablers for creating & strengthening the domestic value chain Key inputs required viz. investments, technology, and infra eco-system Details of key PCB value chain players – global and domestic, who can be invited to invest to establish a strong PCB industry
https://elcina.com/ems-task-force-report-on-market-industry-analysis-of-ems-sector-in-india	EMS Task Force Report Key Findings Currently EMS Industry (Contract Manufacturing Services) are valued 832 Bn $ and are projected to grow 1055 Bn by 2025. Domestic electronics manufacturing is estimated at USD 75 Bn of which 39 Bn constitutes EMS value. This is divided into 23.5 Bn domestic Mfg. and USD 15.5 Bn PCBS/Sub-Assembly imports. Further USD 53.5 Bn is finished Electronic Goods imports of which USD 17 Bn is EMS value. Thus total EMS opportunity loss is US$ 32.5 Bn (15.5 +17). The report estimates that EMS production can grow realistically from USD 23.5 Bn today to USD 152 Bn by 2025 at CAGR of 45%. This will meet 75% of the countries EMS requirement of US$ 203 Bn by 2025 against a total estimated market of 400 Bn.
https://elcina.com/elcina-task-force-report-on-electronic-components	ELCINA Task Force Report on Electronic Components Key Findings Current status of component manufacturing in India – Areas of competence vs Gaps and inadequacies Components which urgently require investments and growth in domestic manufacturing Emerging technology and new components for upcoming opportunities Constraints and bottlenecks to be addressed Overcoming Policy constraints, WTO (ITA-1) deadlock and Zero Duty issue Strategy for overcoming these constraints Eco-System requirements- Role of Central and State Governments
https://elcina.com/elcina-directory-of-indian-electronics-industry	ELCINA Directory of Indian Electronics Industry 2023-24 Description ELCINA Directory of Indian Electronics Industry – includes the updates on Indian Electronics Industry and a host of additional improved features covering business environment, statistical industry scan, company databases plus various projections. This handy compendium with its easy-to-read format attracts the attention of a growing number of users (within India and abroad) Apart from electronics industry, the users of this Directory range from financial institutions, commercial banks, FIIs, Consultancy organizations as well as industry promotion institutes across the world….

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FORTHCOMING EVENTS &  GENERAL INFORMATION 

International Events
	Hong Kong Electronics Fair(Autumn Edition) 13th -16th October 2024 Hong Long https://www.hktdc.com/event/hkelectronicsfairae/en/programme
	TPCA Show 23-25 October 2024 Taipei Nangang Exhibition Center https://tw.tpcashow.com/introtw/
	China (Guzhen) International Lighting Fair 2024 22nd -26th October 2024  https://shorturl.at/gsgQL
	Consumer Technology Association. ​7th -10th January 2025 LAS VEGAS, NV https://www.ces.tech/exhibitors.aspx
	XPONENTIAL Euope 18th-20th February 2025 Germany https://www.xponential-europe.com/
	Intelligent Asia 6th- 8th March 2025 Thailand https://www.chanchao.com.tw/IntelligentAsia-Thailand/en/
	Embedded world 2025 11th  – 13th March 2025 Nuremberg, Germany https://www.embedded-world.de/en
	International Battery Seminar & Exhibit 2024 17th -20th March 2025 Orlando, Orlando, USA https://www.internationalbatteryseminar.com/
	IPC APEX EXPO 18th-20th March 2025 Anaheim Convention Center https://www.ipcapexexpo.org/
	Appliance & Electronics World Expo 2024 20 - 23 Mar 2025 Shanghai New International Expo Centre(SNIEC), Shanghai, China https://en.awe.com.cn/
	The International Electronic Circuits 24th -26th March China http://www.cpcashow.com/en/information.asp
	CPCA Show 2025 24- 26 March 2025 http://www.cpcashow.com/en/index.asp
	International Electronics Circuit Exhibition 4-6 December 2024 Shenzhen World Exhibition & Convention Center (Bao’an), China https://www.hkpcashow.org/en/show/information

Domestic Events
	Globe-Tech Engineering Expo 2024 19th-22nd September 2024 Pune https://enggexpo.in/
	The Battery Show India 3rd - 5th October 2024 India Expo Centre, Greater Noida  https://visitor-registration.thebatteryshowindia.com/visitor_registration?ref=elcina1
	India Mobile Congress 15th to 18th October 2024 Pragati Maidan Delhi https://www.indiamobilecongress.com/
	ELECTRONICS EXPO 12th -14th DEC 2024 CHENNAI https://shorturl.at/2VFcu
	EV Asia Expo 12th  – 14th February 2025 Gujarat https://www.evasia.in/
	ET Expo and Automotive Electronics & Testing Show 13th- 15th  February 2025 Pune https://et-automotive.com/
	14th Source India 18th-19th  February2025 Chennai https://event.sourceindia-electronics.com/
	16th ELECRAMA 2025 22nd- 26th February 2025 https://elecrama.com/
	Convergence Expo 19th- 21st 2025 March New Delhi https://www.convergenceindia.org/
	India Electronics Expo 2025 19th- 21st March 2025 Pragati Maidan Delhi https://www.indiaelectronicsexpo.com/

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