VOL XXV, ISSUE 12

30 June 2024

TOP

2. Instruction No. 16/2024-Customs dated 25th June, 2024: CBIC Issues Clarifications on Transfer of Goods Between Section 65 Units Under MOOWR

The Central Board of Indirect Taxes & Customs issued Instruction No. 16/2024-Customs on June 25, 2024, addressing concerns about transferring goods under Section 65 of the Customs Act. The instruction clarifies procedures under the Manufacture and Other Operations in Warehouse Regulations, 2019 (MOOWR).

It outlines requirements for transferring goods manufactured or processed in a warehouse to another Section 65 unit, emphasizing the need for filing transfer documentation, notifying bond officers, and complying with duty payment obligations upon clearance for home consumption.

For more detailed information, ELCINA members are advised to refer to the CBIC website

3.  Circular No. 07/2024-Customs dated 25th June 2024: CBIC Introduces Exchange Rate Automation Module (ERAM) Effective July 4, 2024

The Central Board of Indirect Taxes & Customs (CBIC) issued Circular No. 07/2024-Customs on June 25, 2024, introducing the Exchange Rate Automation Module (ERAM). This module automates the calculation of imported and exported goods' values based on exchange rates as per Section 14 of the Customs Act.

ERAM will replace the manual process of exchange rate determination, starting July 4, 2024. It will publish exchange rates for 22 currencies online via the ICEGATE website. Rates will be updated twice a month, on the evenings of the 1st and 3rd Thursdays, becoming effective from midnight the following day. This initiative aims to enhance trade facilitation by providing importers and exporters with accessible and timely exchange rate information.

For detailed procedural guidelines, ELCINA members are advised to refer to Circular No. 07/2024-Customs dated June 25, 2024, issued by CBIC.

4. Circular No. 08/2024-Customs on SCMTR Implementation dated 30th June 2024: DGoS Issues Guidelines for Smooth Transition to New Cargo Manifest Regulations

Circular No. 08/2024-Customs, issued by the Ministry of Finance, Department of Revenue, extends the transitional provisions of the Sea Cargo Manifest and Transshipment Regulations (SCMTR) from June 30, 2024, to August 31, 2024.

This extension aims to facilitate a phased implementation of SCMTR, ensuring stakeholders have adequate time to adjust to new filing formats and timelines. The regulations seek to improve transparency and efficiency in Customs clearance processes for imported and exported goods.

Stakeholders are advised to commence parallel filing in the new SCMTR format alongside existing systems to minimize potential disruptions. Detailed guidelines and support resources are available on www.icegate.gov.in to assist stakeholders in compliance.

5. Trade Notice No. 07/2024-2025- DGFT Dated: 28th June 2024: Extension of Interest Equalisation (IES) Scheme for MSME Exporters till August 31, 2024

The Government of India, Ministry of Commerce and Industry, Department of Commerce, Directorate General of Foreign Trade, Vanijya Bhawan, New Delhi, has issued Trade Notice No. 07/2024-2025-DGFT dated 28th June 2024 regarding the extension of the Interest Equalisation Scheme (IES) for Pre and Post Shipment Rupee Export Credit. 

1. The Interest Equalisation Scheme, previously extended as a fund-limited scheme until 30th June 2024, has now been further extended for an additional two months, up to 31st August 2024.

2. This extension is specifically applicable to MSME exporters, with a total outlay capped at Rs. 750 Cr for the extended period. The terms and conditions of the scheme remain unchanged from its current form.

3. Claims from non-MSME exporters will not be considered beyond 30th June 2024.

4. Stakeholders are advised to refer to guidelines issued by the Reserve Bank of India and relevant notifications concerning this matter.

This Trade notice aims to inform the trade and industry community about the revised timeline and conditions of the IES to facilitate better understanding and compliance.

6. Policy Circular No. 06/2024-25-DGFT Dated: 19th June, 2024: Addressing Import Restrictions for SEZ Units

The DGFT has issued Policy Circular No. 06/2024-25 to address concerns raised by SEZ units regarding import restrictions on ITC (HS) Codes 71131912, 71131913, 71131914, 71131915, and 71131960.

According to Rule 27(1) of the Special Economic Zone Rules, 2006 (amended), these restrictions do not apply to imports by SEZ units, excluding FTWZ units. This clarification aims to facilitate uninterrupted import operations within SEZs.

This clarification will help to ensure smooth import operations within SEZs.

7. OM no. 12/136/2021-HSM dated July 1, 2024: MoEFCC Extends Timeline for Filing E-Waste Returns

The Ministry of Environment Forest and Climate Change (MoEFCC) has extended the deadline for filing quarterly and annual returns under the E-Waste (Management) Rules, 2022 until August 31, 2024, for the financial year 2023-24. This extension, issued on July 1, 2024, applies to manufacturers, producers, recyclers, and refurbishers (collectively referred to as "registered entities").

Previously, the deadline for filing annual and quarterly returns was set for 30th June, 2024. The extension, granted under Rule 9A of the E-Waste (Management) Rules, 2022, allows for EPR certificate generation and transfer on the EPR portal during this period.

For further details, please refer to the MoEFCC's order dated July 1, 2024.  

         INDUSTRY  SCAN                                                                             

General

Semiconductor Park To Come Up At Kochanahalli Near Kadakola

The stage is set for the ambitious Semiconductor Park to take shape at the Kochanahalli Industrial Area near Kadakola, close to Nanjangud. Karnataka Industrial Area Development Board (KIADB) has acquired a total of 234 acres in Kochanahalli, with 140 acres earmarked specifically for the Electronics Manufacturing Cluster (EMC), known as Semiconductor Park. Mysuru-based Kaynes Technology and Wurth Technology have secured the necessary land in Kochanahalli to establish their respective units. Kochanahalli Industrial Area, part of the second phase of development along with Kadakola and Tandavapura Industrial Areas, has seen significant progress. Out of the total 234 acres allocated for EMC, 140 acres are available after setting aside land for Civic Amenities (CA) sites, roads and a Sewage Treatment Plant (STP). Earlier, Israel-based Analog Fab Private Ltd. had planned to set up a semiconductor chip manufacturing unit in Mysuru, aiming to create 10,000 jobs. However, a US-based company acquired Analog Fab, resulting in the cancellation of the investment plan for Mysuru’s Semiconductor Park.

Source: https://starofmysore.com/, June 30, 2024

India, US to develop AI devices, semiconductors for missiles

India and the US are looking at cutting-edge military technology, including military-grade semiconductors to guide long-range missiles and new artificial intelligence backed situational awareness equipment that will be jointly developed by a US company with an India-based partner. The two sides are exploring co-production of the Javelin anti-tank guided missile and armoured carrier Stryker. These are in addition to the procurement of long-range armed drones MQ9B and the joint-production of the General Electric’s F414 jet engine for Tejas Mark 2 jets. US State Department’s Deputy Secretary Kurt Campbell, in an international online press briefing last week, mentioned the recent meeting of the US-India initiative for Critical and Emerging Technologies (iCET). Campbell, who was in India with the US delegation on June 17-18, led by National Security Advisor (NSA) Jake Sullivan, said, “We are also launching a new strategic semiconductor partnership between General Atomics and 3rd ITECH to co-develop semiconductor design and manufacturing for precision-guided ammunition and other national security-focused electronics platforms”.

Source: https://www.tribuneindia.com/, June 29, 2024

Samsung Semiconductor India automates 5G field testing process

Samsung Semiconductor India Research (SSIR) has implemented an end-to-end 5G wireless protocol signaling solution to streamline and automate its 5G field-to-lab workflow. This is done for SSIR’s lab in the Bangalore city of India. It has selected Keysight Technologies’ Signaling Field-To-Lab (S-FTL) solution to improve end-user quality of experience (QoE) by accelerating the replication, analysis, and resolution of 5G field issues in a test lab environment. SSIR’s corporate EVP and MD, Balajee Sowrirajan, said the partnership has helped recreate real-world field scenarios in a lab environment, and accelerated the resolution of communication and connectivity issues for wireless modem customers. With a comprehensive set of tools and techniques for testing, the S-FTL solution enables engineers to identify and resolve communication issues accurately, said Sowrirajan.

Source: https://www.itnews.asia/, July 01, 2024

Smart Grids to Save Over $290 Billion in Global Energy Costs by 2029, Says Research Experts

Research experts have now found that by 2029, the savings potential from smart grids will increase by 249 percent, up from $84 million in 2024; benefitting utilities and consumers. Global Research body, Juniper Research has stated in its new survey report that the growth is driven by increasing investment in solutions from governments, including the US, China, and Europe, with BESS (Battery Energy Storage Systems) becoming a focal point for the market. The research found the market shift to prioritising BESS efficiency and solutions is facilitated by the need to meet climate goals and reduce reliance on fossil fuels. Since renewable energies do not meet current demand, ensuring excess energy is not wasted is crucial for reducing carbon emissions. The report also identified that whilst AI is used extensively for grid automation processes, GenAI (Generative Artificial Intelligence) is providing additional features.

Source: https://circuitdigest.com/, June 30, 2024

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Information Technology

Tech companies must 'acknowledge the damage', says UN, and other digital technology stories you need to know

António Guterres, Secretary-General of the United Nations (UN), has called on technology firms to “acknowledge the damage your products are inflicting on people and communities”. Speaking at the launch of the UN's Global Principles for Information Integrity, he said that algorithms on social media platforms had the ability to “push people into information bubbles and reinforce prejudices including racism, misogyny and discrimination of all kinds” through opaque algorithms. “You have the power to mitigate harm to people and societies around the world,” he said. “You have the power to change business models that profit from disinformation and hate”. His comments come after several high-profile calls for social media companies to do more to protect vulnerable people, especially children.

Source: https://www.weforum.org/, July 01, 2024

IT union seeks probe on DXC Technology's 4,800 campus onboarding delays

 IT sector employee union Nascent Information Technology Employees Senate (NITES) has asked the Ministry of Labour & Employment to look into DXC Technology for delaying onboarding of over 4,800 new campus recruits. “These delays, lasting more than two years, have caused serious problems for these new employees. Many turned down other job offers because they believed in DXC Technology's promises. Now, they are struggling financially and are unsure about their future because they haven't started working yet. DXC Technology's actions have broken the trust of these young professionals. They expected a smooth start to their careers, but instead, they are left waiting,” said Harpreet Singh Saluja, president at NITES. These young professionals' well-being and careers are at risk. We have asked the ministry to act quickly to protect them and make sure they are not unfairly punished because of DXC Technology's delays, Saluja added.

Source: https://economictimes.indiatimes.com/, June 28, 2024

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Consumer Electronics

Retail India News: OKIE Ventures into Madhya Pradesh with Innovative Consumer Electronics

OKIE Ventures, a prominent player in electronics manufacturing specializing in OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) solutions, has unveiled its strategic expansion into Madhya Pradesh. This expansion marks a significant move for OKIE Ventures into the vibrant markets of central India, renowned for its cultural richness and economic dynamism. Recognized for its innovation and commitment to quality, OKIE Ventures is introducing its acclaimed OKIE LED TV range to the discerning consumers of Madhya Pradesh. This expansion aligns with OKIE's strategic initiative to broaden its presence across key regions in India, leveraging its expertise in delivering advanced consumer electronics solutions. The OKIE LED TV series, renowned for its superior quality and innovative features, will anchor OKIE's product lineup in Madhya Pradesh. These TVs, equipped with smart functionalities and available in various sizes from 32" to 86", promise an immersive viewing experience tailored to diverse consumer preferences.

Source: https://www.indianretailer.com/, July 01, 2024

LG Electronics adopts human rights principles: Know-why

LG Electronics, a South Korean giant which is leading the consumer electronics market with a range of devices worldwide has reportedly said that it has adopted human rights principles. The move has been taken to avoid human rights violations within the company as well as its contracted companies. In an official statement, The company said that LG Electronics has reportedly integrated existing human rights-related rules and strengthened them in line with the United Nations Guiding Principles on Business and Human Rights (UNGPs), Yonhap news agency reported. The human rights principles result in the banning of discrimination, forced labour, harassment and child labour at workplaces, while stipulating violations in working hours, welfare benefits and wages, as well as artificial intelligence ethics in the work workplaces.

Source: https://www.indiatvnews.com/, June 28, 2024

Sony India MD says India is expected to overtake Japan to become third largest global market in two years

Japanese consumer electronics giant Sony expects India to overtake home market and become the company’s third largest market globally in the next couple of years with its revenue from the country reaching Rs 10,000 crore.Sony India Managing Director Sunil Nayyar said the company clocked a revenue of Rs 6,353 crore in 2022-23 in the country and is betting on the premium television segment besides its audio and imaging products to drive the growth.According to him, Sony India is also betting big on the fast growth of the gaming segment and imaging business. We have travelled a long way. If I go 10 years back, we were quite behind the globe, but now, we are a close number four as a single country business across the globe, which means in a couple of years, maybe we can be number three and to remain in the top three in future I think should be a good position to stay as a Sony company around the globe,” Nayyar told PTI.

Source: https://www.thehindubusinessline.com/, July 01, 2024

Top brands bank on 'imported' sales events to boost demand

When technology giants Apple, Lenovo, HP and Dell rolled out their 2024 editions of back to school or campus sales in India earlier in June, it underscored the rapid growth of this US sale event 'imported' to India over the last five to six years. The sales campaign currently spawns more than a fourth of retail laptop sales, second only to the Diwali festive season's contribution of 30-35%, as per industry estimates. Back to school, small business days, Black Friday, Cyber Monday, Mother's Day, Father's Day, Valentine's Day are part of a growing list of 'imported' sales events in India. Brands, retailers and ecommerce platforms are increasingly relying on such events 'imported' from the West to drive sales with discount shopping emerging as a notable trend among Indian consumers, especially since the pandemic.

Source: https://economictimes.indiatimes.com/, June 30, 2024

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Telecom

Why tariff hikes by Airtel, Jio,Vi were inevitable

All three of India’s leading telecom operators, Reliance Jio, Bharti Airtel and Vodafone Idea (Vi) have announced tariff hikes within hours of each other, as the companies search for a path of monetizing 5G services and improving the financial health of the sector. Jio has raised tariffs by 12-25 per cent, with the steepest hike coming in some of its more premium plans. The most active plan — 28 days validity with 1.5 GB of data per day — saw the sharpest hike of 25 per cent. Airtel has increased prices by 11-21 per cent. Vi has raised prices by 10-20 per cent. In Jio and Airtel’s case, the new prices will come into effect from July 3, while Vi’s new tariffs will kick on July 4. India’s two leading telecom operators, Reliance Jio and Bharti Airtel, have both announced tariff hikes within hours of each other.

Source: https://indianexpress.com/, June 29, 2024

Indians to spend an extra ₹47,500 crore post-Jio, Airtel, and Vodafone tariff hikes: Report

Indian telecom users are expected to pay Rs.47,500 crore more annually as a result of the tariff hikes from India's top three telecom operators, reported the Economic Times quoting a Kotak Institutional Equities research note. The tariff hikes were executed to effectively monetise their new 5G plans and put an end to the ongoing price war among the telecom operators which has been waging since 2016, according to the report. Reliance Jio Infocomm increased their prices by 13-27 per cent, Bharti Airtel raised tariffs by 10-21 per cent, and Vodafone Idea raised prices by nearly 10-23 per cent, within two days. A Jio user willing to get a 5G internet plan must now pay a minimum of ₹349 for a 2 GB per day recharge pack, as compared to the earlier ₹239 data plan which gave them 1.5 GB per day. Similarly, an Airtel user willing to get a 5G data pack now has to even take a bigger priced pack at ₹409 which gives them 2.5 GB internet per day, as compared to the earlier ₹239 plan which gave them 1.5 GB per day.

Source: By Anubhav Mukherjee, https://www.livemint.com/, June 29, 2024

Spectrum auction: Govt to issue demand note to telcos this week for payment

The telecom department is expected to issue a demand note to telcos this week for payment of spectrum they bought in the just-concluded auction, according to a source. The auction -- lasted for two days spanning seven rounds this time around - witnessed the sale of 141.4 MHz of radio waves for Rs 11,340.78 crore. In all, 10,500 MHz of radiowaves used for mobile services worth over Rs 96,238 crore were placed on the block during the auction started on June 25. Sunil Mittal's Airtel emerged as the biggest bidder for radio waves, cornering about 60 per cent of the Rs 11,341 crore worth of spectrum sold in this auction. Airtel bid and won airwaves worth Rs 6,856.76 crore, and rival Mukesh Ambani's Reliance Jio - the market leader - got Rs 973.62 crore worth of spectrum - the least in the three-way contest.

Source: https://www.business-standard.com/, June 30, 2024

Scindia sets up six advisory panels to energise the telecom sector

The Department of Telecommunications (DoT) has constituted six stakeholder advisory committees which will give inputs for fostering the growth of the sector and also for resolving key issues. The move was spearheaded by communications minister Jyotiraditya Scindia (pictured), who took charge earlier this month. Committees have been constituted for original equipment makers (OEMs), telecom service providers (TSPs), the satellite communications ecosystem, internet service providers (ISPs), electronics, and an advisory committee of academicians and research and development in the telecommunications sector. The first meetings of the committees are expected to take place soon, and members have been asked to share items for discussion as well as goals and targets for their respective areas. The committees will be represented by industry associations, private  firms, NITI Aayog, public sector undertakings (PSUs) as well as officials from the DoT. A senior Dot official has been tasked with coordinating the various committees.

Source: By Surajeet Dasgupta, https://www.business-standard.com/, June 28, 2024

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EV’s & Auto Electronics

EV sales drop 14% to 106,081 units in June, signalling challenges ahead

Sales of electric vehicles (EVs) in India saw a sharp 14 per cent decline in the month of June against May’s figure, with experts suggesting that it could be due to a combination of factors such as changes in government policies and people’s increasing interest towards hybrid vehicles. But, the June 2024 sales were over 20 per cent higher when compared to the same month last year, when the sales had dropped due to government tweaks in subsidies. According to Vahan data from the Ministry of Road Transport and Highways, EV sales in June 2024 fell by more than 14 per cent to 106,081 units, compared to 123,704 units sold in May. It was the lowest sales figure in this calendar year. So far this year, around 839,545 electric vehicles have been sold, accounting for approximately 6.69 per cent of the total 12,541,684 vehicles sold. “Low incentives for e2Ws, increasing consumer confidence in hybrids, a lack of robust charging infrastructure, and high EV prices are all impacting EV sales,” Preetesh Singh, specialist CASE and alternate powertrains, NRI Consulting & Solutions.

Source:https://www.business-standard.com/, July 01, 2024

Auto Sales June 2024 LIVE: Tata Motors domestic PV sales down 8%, Maruti Suzuki sales up 3%; other auto makers to report data soon

Auto sales India June 2024, car sales, two-wheeler sales, motorcycle sales, CV sales, EV sales: Auto majors - including Maruti Suzuki India, Tata Motors, Mahindra & Mahindra, Hero MotoCorp, Bajaj Auto, TVS Motor Company, Eicher Motors and Ashok Leyland - are all set to release their sales reports for the previous month starting July 1. Both investors and analysts closely track the monthly data sheets from key manufacturers across segments - ranging from passenger and commercial vehicles, to motorcycles, scooters, and electric vehicles - to gauge the overall health of the country's automobile sector.

Source: https://www.zeebiz.com/, July 01, 2024

VCs chase auto parts makers to hitch a ride on EV journey

A number of smaller electric vehicle (EV) component makers, many of which started in other businesses, are seeing increasing interest from venture capital funds, given the boom in the market. These firms often pivoted from their earlier businesses to fill gaps in services provided by larger manufacturers, while also providing extensive design-to-manufacturing services to customers such as original equipment manufacturers (OEMs). Gurgaon-based Indigrid, for instance, started with the manufacture of TV set top boxes, before moving to electric vehicle parts such as motor control untis (MCUs) and instrument clusters over six-seven years. Matel started off as a solar water pump manufacturer in 2016 before starting EV part manufacture in FY21. Both the firms saw their maiden institutional funding only in May-June of 2024. Such firms have raised funds to expand operations as local demand for EV parts has shot up, opening up the space that has been traditionally dominated by large manufacturers like Sona Comstar and Sterling Gtake.

Source: By Soumyajit Sinha, https://economictimes.indiatimes.com/, July 01, 2024

Electric South: 45% of EV sales come from southern states in India

A new report on India's electric vehicle market has revealed that southern states have contributed higher in EV sales. A report titled “An Overview of Indian Electric Vehicle Market: Trends And Future Outlook” by Frost & Sullivan highlighted that the presence of OEMs, component suppliers, and battery/cell manufacturing companies in Tamil Nadu has resulted in a spike in electric vehicle sales. The report pointed out that South India accounts for half the EV sales in the country. Currently, Hyundai Motor and Stellantis have commenced production of EV passenger vehicles in Tamil Nadu. Whereas automakers like Renault-Nissan and BMW are expected to produce EVs in the state soon. The OEMs are aiming at localizing the production of 60-70% EV components by 2030, including battery and other critical components. According to the report, over 123,000 units of Battery Electric Vehicles (passenger cars) are likely to be sold in India by the end of 2024; recording an estimated y-o-y growth of 47.9% as compared to 83,000 units sold in 2023.

Source: https://www.storyboard18.com/, July 01, 2024

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Defence & Solar

India gets one of the most powerful non-nuclear bombs, 2x lethal than TNT

In a significant advancement for the army, the Indian Navy has successfully developed and certified a new explosive with a lethality 2.01 times greater than standard TNT (Trinitrotoluene), according to The Economic Times. This high-performance explosive, developed by Solar Industries, is now among the most powerful non-nuclear explosives in the world. The newly formulated explosive, which has undergone extensive testing and certification by the Navy, has the potential to significantly enhance the destructive power of bombs, artillery shells, and warheads without adding extra weight, the report said. Named SEBEX 2, this explosive has been evaluated, tested, and certified by the Indian Navy under its Defence Export Promotion Scheme. “The development of the explosive will enhance the potency and efficiency of weapons and ammunition in use,” the financial daily reported citing officials, noting that final certifications were completed last week. Explosive performance is gauged by TNT equivalence, with higher values indicating greater lethality. Currently, the most powerful conventional explosive used in India, specifically in the Brahmos warhead, has a TNT equivalence of about 1.50. Most conventional warheads worldwide have a TNT equivalence ranging from 1.25 to 1.30.

Source: By Abhijeet Kumar, https://www.business-standard.com/, July 01, 2024

All About 70 mm Rockets Adani Defence Will Build In India

In a major boost to self-reliance in defence manufacturing, Adani Defence & Aerospace has collaborated with Thales Group, to build 70 mm rockets for India's attack helicopters. Thales is a world leader in manufacturing 70mm rocket. They can be used against soft and light armoured vehicles, air defence facilities, radar sites and communication installations with laser-guided precision. Adani Defence has partnered with Thales, Belgium to establish the manufacturing, assembly and testing in India under Buy Indian category of Defence Acquisition Procedure (DAP) 2020. An exclusive partnership for India, it will also provide avenues for exports based on the competitiveness of the supply chain in India, sources said. India operates the HAL Rudra - attack variant of the Dhruv chopper, Light Combat Helicopter Prachand, the Apache AH-64 and the Mi-35 choppers in its attack fleet.

Source: https://www.ndtv.com/ June 29, 2024

Indian Army inducts first-ever indigenous chip-based made in India 4G base station from Signaltron

Indian army has inducted the first-ever indigenous chip-based 4G mobile base station, which it procured from Bangalore-based firm Signaltron through the government e-marketplace portal, a top company official said. Signaltron founder Himamshu Khasnis told PTI that the chip used in the Sahyadri LTE base stations has been developed by Signalchip. Earlier in 2010, Khasnis and his team founded a fabless semiconductor company Signalchip to make chips for 4G and 5G networks. Signaltron has built the entire system indigenously using India's first chips for 4G and 5G networks developed by Signalchip. This is the first time an Indian system running on an Indian chip for complex communication technology has been inducted into the army. Using indigenous chips gives a high degree of control on the security of the system in its operation.

Source: https://economictimes.indiatimes.com/, June 30, 2024

Defence Ministry dials into Velmenni’s Li-Fi technology to address Indian Navy’s communication challenges

Velmenni, a trailblazer in light communication technology, has recently received a significant grant from the Ministry of Defence (MoD) under the iDEX initiative. This funding aims to bolster secure wireless communication for the Indian Defence sector, particularly focusing on the Navy and the unique communication challenges it faces in modern warfare. The iDEX program is designed to stimulate innovation within India’s defence sector by incorporating advanced technologies, such as Velmenni’s Li-Fi. This initiative aligns with national strategies like Make in India, Startup India, and the Atal Innovation Mission (AIM). The grant underscores the potential of Li-Fi to address the communication hurdles encountered by the Navy in harsh environments. Deepak Solanki, Founder and CEO of Velmenni, remarked on the significance of the grant, saying, “The iDEX Grant is a testament to the potential of our Li-Fi technology. With these resources, we are poised to revolutionize wireless communication, ensuring secure and efficient data transmission using light.

Source: https://www.financialexpress.com/, July 01, 2024

MSME

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

M1xchange and Andhra govt ink MoU to boost MSME financial access

Delhi NCR-headquartered trade receivable discounting system (TReDS) platform M1xchange signs a memorandum of understanding (MoU) with the Government of Andhra Pradesh to enhance financial access for local Micro, Small & Medium Enterprises (MSMEs) in the state to facilitate their growth and sustainability. Through TReDS, MSMEs are expected to get access to working capital against invoices within 24 hours at the lowest rate through its online bidding platform, collateral-free and without recourse on MSMEs. Sundeep Mohindru, director of M1xchange said, this MoU is a pivotal step towards empowering the MSME sector in Andhra Pradesh by streamlining access to working capital through TReDS. So far, the trade receivable discounting platform M1xchange has facilitated Rs 1,00,000 crore worth of invoice discounting. The company is expecting Rs 72,000 crore in throughput value (total value of invoices processed) by March 2025, higher than Rs 43,300 crore in FY24.

Source: https://economictimes.indiatimes.com/, July 01, 2024

Finance ministry mulls changes to MSME payout rule

The finance ministry is contemplating changes to the income tax rule that directs businesses to pay micro, small, and medium enterprises (MSMEs) within 45 days, sources said. Finance minister Nirmala Sitharaman could announce the revisions during the 2024-25 budget presentation next month. Officials from North Block are reviewing the rule, effective since April 1, following demands by the industry. Finance Act 2023 introduced a clause (h) in section 43B of Income Tax Act — stipulating that payments to micro or small enterprises beyond the 45-day limit, specified in section 15 of MSME Development Act 2006, would only be deductible upon actual payment. If businesses fail to comply within the 45-days, they will face tax liabilities. MSMEs have expressed concern that this provision may drive bigger buyers to prefer unregistered enterprises to avoid compliance. Recently, the Supreme Court rejected a plea challenging Section 43B(h) of the Income Tax Act that restricts businesses from extending credit beyond 45 days.

Source: By R. Suryamurthy,https://www.telegraphindia.com/, 01.07.24

SBI launches new 15-minute facility for MSMEs to avail loan against sales invoices

 Public sector lender State Bank of India (SBI) on Monday announced MSME Sahaj, an online business loan solution for MSMEs to avail credit against their Goods and Services Tax (GST) registered sales invoices of up to Rs 1 lakh. SBI said the new solution will have a turnaround time of less than 15 minutes, from applying for the loan to documentation and disbursement of the amount without any manual intervention. According to the bank, the closure of the loan would also be automated on the due date.The underwriting will be based on multiple data footprints of a business including GSTIN, bank statements, CIC (credit information company) data base etc., using machine learning model.

Source: https://www.financialexpress.com/, July 01, 2024

Interest equalisation scheme extended for MSME exporters

The Department of Commerce has extended the Interest Equalisation Scheme for pre- and post-shipment rupee export credit for Micro, Small and Medium-scale (MSME) exporters till August 31. According to a trade notice from the Department dated June 28, the outlay for the extended period is ₹750 crore and the extension is not applicable for non-MSME exporters beyond June 30. The terms of the scheme will remain the same. Sudhir Sekhri, chairman of the Apparel Export Promotion Council (AEPC), said the extension of the scheme will benefit the labour-intensive garment sector, which largely has MSME units. The garment exporters are grappling with high interest costs, he said. But, there should be stability and predictability in the policy regime. The policies and schemes should be for at least a period of five years.

Source: https://www.thehindu.com/, June 29, 2024

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ELCINA EVENTS , ACTIVITIES & SERVICES 

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ELCINA B2B Interactive Meetings with Taiwanese Companies

Hall 3 Mezzanine Floor, Pragati Maidan, New Delhi

9^th July 2024 | 9.30 am to 2.00 pm

We are pleased to inform you that ELCINA has collaborated with the Commerce Development Research Institute (CDRI), Government of Taiwan, for the Wow! Taiwan Project. The primary objective of this project is to identify potential buyers and partners for Taiwanese startups and companies in India. These companies will be in India to have one-to-one interaction with potential partners.  

To facilitate interaction and foster potential partnerships, ELCINA is organizing organizing Physical B2B Meetings on 9th July 2024 (Tuesday) at Pragati Maidan (Hall 3).

The tentative agenda for the program is as follows:

• 9:30 AM : Registration

• 10:00 AM – 10:30 AM: Introduction

• 10:30 AM – 1:00 PM: Meeting with Taiwan Companies/B2B Meetings

• 1:00 PM: Networking Lunch

 Please find below a list of the participating Taiwanese companies:

The event is being organized on the sidelines of Taiwan Expo which will be held in India from 8^th to 10^th July in Hall 2 of Pragati Maidan. Indian industry will have an opportunity to visit the Taiwan Expo as well.

To know more about TAIWAN EXPO  please click the link.

For any further clarification or assistance, please feel free to contact prachi@elcina.com

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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
	KPCA Show 2024 (Int’l Electronic Circuits and Packaging Show) 4 - 6 September 2024 Songdo Convensia, Incheon http://www.kpcashow.com/m/eng/about.asp
	TPCA Show 23-25 October 2024 Taipei Nangang Exhibition Center https://tw.tpcashow.com/introtw/
	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
	13th Strategic Electron Summit July, Bangalore https://ses-india.in/
	Electronica India 11th -13th September 2024 India Expo Mart, Greater Noida https://electronica-india.com/en/trade-fair/
	Semicon India 2024 11th -13th September 2024 India Expo Mart, Greater Noida SEMICON India 2024 - Shaping the Semiconductor Future | SEMI
	14th Source India Electronics Supply Chain February, Chennai Trade Centre https://event.sourceindia-electronics.com/

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