SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 97

In line with the Government of India policy,

Karnataka will promote the Creation of high-class

Preferential Market Access shall be given to

ESDM Manufacturing Clusters( EMC) to provide

" Karnataka ESDM companies " for the ESDM

world-class infrastructure facilities necessary to

products procured by all Government Departments

attract investment into the ESDM Sector including

of Karnataka. The year wise PMA and value addition

EMS and component manufacturing. The State will

thresholds for each product shall be in line with the

encourage participation of the private Sector in a

National Electronics Policy and National Telecom

PPP mode, wherever practical, in developing such

Policy as shown below. This Policy shall be

infrastructure. Karnataka ' s EMC policy shall provide

applicable from the date of notification and shall

additional incentives on top of those offered by

remain in force for a period of next 7 years.

Government of India ' s Electronics Manufacturing

For the purpose of becoming eligible under the PMA,

Cluster scheme notified by Deity.

domestically manufactured Electronic products are

7.4.1 The policy will support the development of seven

those that are manufactured by Companies

ESDM Manufacturing Clusters( EMC) in the State by

registered and established in Karnataka and

2020. The EMCs shall provide internal and external

engaged in manufacturing, including Contract

infrastructure, inclusive of advanced logistics, shared

manufacturers, but excluding traders. These

testing and training facilities. Support of

Electronic products shall meet the following graded

Government of Karnataka for infrastructure

domestic value addition in terms of Bill of Material

development in EMCs shall not exceed 20 % of the

( BOM) for domestic manufacturers:

total infrastructure Cost.

The formula for Value-Addition is:

7.4.2 The EMCs will be laid out keeping in mind the latest

Product Price( Ex-factory)

: A

international Standards of town and Country

Cost of Bill of Material( BOM) in " A "

: B

BOM Sourced from domestic Manufacturers: C

planning and being made environment-friendly with proper Segregated disposal mechanism and landscaped lung space.

Value Addition in terms Of BOM

:( C / B)* 100

7.4.3 Development of complimentary infrastructure such

7.2

Setting-up of ESDM innovation Centers:

as Roads, Railways, etc., ensuring proper

Karnataka will set up three ESDM innovation centers

connectivity between the cluster and the appropriate

that will provide complete infrastructure to

Airport / Seaport / Railway Stations.

entrepreneurs and companies who want to take their

7.4.4

The Government shall make efforts to increase the

product concept and implement a working

number of trains and aircraft operating to and from

prototype. Such innovation Centers Will have all the

major cities of Karnataka to facilitate better

requisite design tools such as VLSI design tools,

movement of goods and passengers.

7.3

prototype development facilities, testing facilities, characterization labs, compliance and certifications labs along with requisite manpower and component

Stocks. The first Such Center shall be housed at IITaudience

Bangalore and Subsequent Centers will be setup in other parts of the state.

Semiconductor IP and Fabless Chip Design fund:

7.5

and build a strong‘ Brand Karnataka’ for

Establishing‘ Karnataka Brand’ globally

The Government Will market Karnataka as an attractive ESDM Center for the global investor

ESDM. The State shall work with the external affairs ministry to conduct road shows for foreign ambassadors in Delhi, sign MoUs with identified

To Stimulate the Creation of Fabless Design

" Sister-Cities " in other Countries, and engage with

Companies and Semiconductor IP, which Will be

the 50 top ESDM companies of the world to

needed in the ESDM Sector, the Government Will

proactively invite investments into the State.

launch a Semiconductor IP and Fabless Fund that will provide funding to Karnataka ESDM companies for their startup, growth and debt / working capital needs in the next seven years. This fund will work closely with the ICT Innovation Fund and shall be jointly funded by the Government of Karnataka,

Government of India and Other Public / Private

7.6

Innovation Promotion

Government will promote innovation in the ESDM

Sector through Awards by way of grants. The best innovations in the ESDM sector will be selected by the Screening Committee comprising of Industry and

Academia representatives.

Financial Institutions. The Government of Karnataka contribution shall be limited to 26 % of the fund size.