ICA and Govt of Uttar Pradesh sign MoU to facilitate investment of Rs 1,000 crore in proposed Electronics Manufacturing Clusters
· ICA National President Mr Pankaj Mohindroo also unveils Vision 2020 to establish UP as a global hub for Electronics System Design and Manufacturing (ESDM) eco-system
· Vision envisages $12 billion dollar of investment and turnover of $50 billion by 2020 in the ESDM sector, which will create additional employment opportunities for 3.6 million people and exports worth $5 billion could be realized
Lucknow, 27 January, 2015:
Indian Cellular Association (ICA) and the Government of Uttar Pradesh today signed an MoU with the objective of encouraging and facilitating new investment of up to Rs 1,000 crore in Electronics Manufacturing Clusters (EMCs) being established in the state.
The MoU was signed by Mr Pankaj Mohindroo, National President, Indian Cellular Association (ICA) and Mr Jiwesh Nandan, Principal Secretary, IT & Electronics on behalf of the Government of Uttar Pradesh.
“ICA will encourage its members and facilitate to establish their projects in the proposed Electronics Manufacturing Clusters (EMCs) in Uttar Pradesh which are to be established in approximate 100 acre land or more which can generate investments of approximately Rs 1000 crore in these EMCs,” Mr Mohindoo said after signing of the MoU.
“For establishment of EMCs, Government of Uttar Pradesh would facilitate ICA to obtain necessary permissions/registrations/approvals/clearances etc. as per the existing policies/rules and regulations of the government and would also help its members to avail incentives under various schemes announced by State/Central Governments, wherever applicable,” Mr Nandan said.
As part of the MoU, Government of Uttar Pradesh will also facilitate ICA members to establish the aforesaid Projects in the State in a time bound manner.
Mr Mohindroo who is also the Chairman of “Fast Track Task Force” set up by the Department of Electronics and Information Technology (DeitY), Government of India, “to re-establish and catalyze growth in mobile handset and component manufacturing eco-system in India”, also unveiled “Vision 2020” to make Uttar Pradesh a global hub for Electronics System Design and Hardware Manufacturing (ESDM).
As per the Vision 2020 unveiled by ICA, it is envisaged that investments to the tune of USD 12 billion (approximately Rs. 72,000 crs.) could be realized in the state of UP in the ESDM (Electronics System Design and Manufacturing) sector by 2020 with the goal of scaling up total value of electronics hardware manufacturing to USD 20 billion (approximately rupees 1,20,000 crore).
Vision 2020 of ICA also visualizes creation of additional 3.6 million job opportunity in this sector while pushing the electronics hardware export from state to USD 5 billion by 2020 from the current level.
“ICA’s vision and endeavor is to support and facilitate the ‘Make in India’ vision of the Government of India. We will provide our expertise for creation of a robust ESDM eco-system, policy reforms and relevant skill development in the state which can help transform the state into a global manufacturing hub for ESDM sector,” said Mr Mohindroo.
It may be noted that the demand for electronics products in the Indian market was USD 45 Billion in 2008-09 and is expected to reach USD 400 Billion by 2020. Domestic demand is expected to be driven by growth in income levels leading to higher off-take of electronics products, automation demands of corporate sector and the government’s focus on e-governance. The domestic production in 2008-09 was about USD 20 Billion. At the current rate of growth, the domestic production can cater to a demand of USD 100 Billion in 2020 as against a demand of USD 400 Billion and the rest would have to be met by imports. This aggregates to a demand supply gap of nearly USD 300 Billion by 2020. Unless the situation is corrected, it is likely that by 2020, the electronics import may far exceed oil imports.
“Our vision is to transform India into a global hub for electronics system design and manufacturing (ESDM) so as to meet the growing domestic and global demand and reduce country’s import dependency. There are many challenges to advance the same – infrastructure gap, tax structure, supply chain and logistics, inflexible labour laws, limited R&D focus, inadequate funding and limited value addition. The Industry looks forward to closely working with the Central and State Government to close these gaps and help realize our vision to transform UP as a global hub in the ESDM sector,” added Mr Mohindroo.
About ICA: Indian Cellular Association (ICA) is the apex body of the mobile industry comprising manufacturers, brand owners, application and solution providers, distributors, retailers and eminent consumers of mobile handsets. The association has been constituted to provide value and service to the mobile cellular industry in India by fuelling its growth, improving competitiveness, helping create a legal and ethical market and regulatory environment, thereby providing long-term benefits of mobile connectivity to the Indian masses. Some of ICA’s prominent members include Apple, Samsung, Microsoft, Nokia, Motorola, HTC, Gionee, Blackberry, Sony, LG, Panasonic, Micromax, Karbonn, Spice, Intex, Lava etc. ICA is fully committed to taking forward the “Make In India” and “Digital India” vision of the Government.
About Mr Pankaj Mohindroo: Mr. Pankaj Mohindroo is the founder and National President of Indian Cellular Association (ICA). Recently he has been appointed as Chairman of the Task Force to boost manufacturing in the mobile handsets and mobile component eco-system by the Department of Electronics and Information Technology (DeitY), Government of India. The task force has been constituted with a broad terms of reference to rejuvenate India’s mobile manufacturing eco-system with a view to achieve production of 500 million units of mobile handsets by 2019. Mr. Mohindroo also played a key role in establishment of Telecom Sector Skill Council (TSSC), a body which has been set up under the aegis of the National Skill Development Council (NSDC) . TSSC has been mandated to skill develop 5 million people in the telecom sector over the next 10 years. Mr. Mohindroo is the founding member of TSSC and also serves in the TSSC Governing Council as the Hon’ Secretary. As the National President of ICA, Mr. Mohindroo played a crucial role towards the growth and emergence of the legal market in India and facilitated various regulatory and legislative changes with a far-reaching impact to achieve this objective for the industry. Mr Mohindroo is Master of Business Administration from the Faculty of Management Studies, University of Delhi and has served on Board of Essel Group, besides being the Chairman and Editor-in-Chief of My Mobile Infomedia Pvt. Ltd., which is considered to be the numero uno among the print and online publications devoted towards the mobile industry.
About DietY Task Force: In December 2014, the Department of Electronics and Information Technology (DeitY), Government of India, set up a ‘Fast Track Task Force’ to rejuvenate nation’s mobile phone manufacturing ecosystem with a vision to achieve production of 500 million units of mobile handsets by 2019 with Mr Pankaj Mohindroo being appointed as the chairman and Mr Josh Foulger, President – Nokia SEZ and Mr. Hari Om Rai, Founder & CMD, Lava International as co-chairman. Other members of the Task Force include: Samsung India Managing Director BD Park; Sony India’s Kenichiro Hibi; Microsoft Devices Director for Government relations Sandeep Bhargava; LG India MD Soon H Kwon and Micromax Informatics Co-founder Vikas Jain. Mr SK Marwah and Ms Asha Nangia, Directors, DeitY represent government in this task force.