Govt plans up to Rs 50,000 crore outlay to subsidize EVs: FAME-III scheme
The initial draft of the third phase of the FAME, or Faster Adoption and Manufacturing of Electric Vehicles Scheme, has been developed by the Union Government. After consulting with the sector and holding inter-ministerial discussions, the government is considering spending between Rs 40,000 and Rs 50,000 crore on FAME-III, sources said.
Another source claimed that in addition to electric two-wheelers, three-wheelers, cars, and buses, the government is also likely to provide FAME subsidy support for electric trucks, bicycles, and quadricycles. The infrastructure needed to enable electric buses and charging stations might receive a large allocation.
Editor’s Note: The FAME scheme was introduced in 2015 as a means of subsidizing electric vehicles. It was divided into two phases: the first had a budget of about Rs 800 crore, which eventually rose to roughly Rs 900 crore by another Rs 100 crore, and the second had Rs 10,000 crore. Under the FAME II scheme, over 8.7 lakh automobiles have received subsidies over the past four years. This is beneficial for Taiwanese companies looking at entering/expanding to India market.
India becomes second-biggest mobile manufacturer, overtakes China
According to a new analysis, local mobile phone shipments under the “Make in India” initiative exceeded 2 billion total units throughout the period of 2014 to 2022, achieving a 23% CAGR. The “Made in India” service report from market research firm Counterpoint Research claims that this is due to strong domestic demand, rising digital literacy, and government initiatives. India is now the second-largest producer of mobile phones in the world.
The Indian government has launched several schemes and initiatives including the Phased Manufacturing Programme (PMP), Make in India, Production Linked Incentive (PLI), and Atma-Nirbhar Bharat (Self-Reliant India) in an effort to promote domestic manufacturing and value addition.
Editor’s Note: Over the years, the manufacturing of mobile phones has increased significantly as a result of numerous initiatives that the Indian government has introduced and carried out. To encourage local manufacture and value addition as part of the “Make in India” strategy, the government over time increased import taxes on specific critical components and totally completed units as well as the Phased manufacture Programme. All of this has resulted in an increase in Indian exports. Product companies from Taiwan who look at Indian market should be aware of India’s direction for Phased Manufacturing Programme (PMP) as direct import of finished products many not be a viable business in long run. The recent regulation of Laptop & Tablet can also be looked at on this background.
Center to allow IT hardware manufacturers more time to manufacture products in India
According to the most recent information on import restrictions on laptops and tablets, the Centre is willing to allow foreign companies extra time to establish manufacturing facilities in India after they submit a detailed proposal for the same.
Reports suggest that the government may ease the licensing requirements for the import of particular items, including tablets and small form factor computers, provided it is satisfied with the recommendations made by the companies.
The objective is to encourage globally successful businesses like Apple, Dell, and HP to start manufacturing gadgets in India. Reports also say that the government keeps in touch with foreign companies to discuss the timelines and strategies for production in India.
No proposal to restrict the import of more electronic items
According to Commerce Secretary Sunil Barthwal, there are currently no plans to put import restrictions on other electronic products.
In order to decrease imports from countries like China and increase domestic production, the government has decided to impose import restrictions on laptops, personal computers, and some other additional electronic products beginning on November 1. According to Barthwal, there is a production-linked incentive (PLI) scheme for the manufacturing of electronics and mobiles.
Editor’s Note: The above 2 news items are an update on the import restrictions on Laptops and Tablets, etc. which we covered in our earlier News Update editions.
India begins to implement a special plan for high-end EVs
A new EV strategy similar to phased production plan (PMP) is being considered by the government.
This is a plan to attract major players in the global car industry, like Tesla, to the market for high-end electric automobiles. According to reports, the new plan is likely to be company-neutral, address the demands of the entire sector, and contribute to strengthening the Indian EV ecosystem.
The government anticipates that its incentives will both meet domestic demand and build a foundation for exports. Without having a detrimental effect on indigenous firms like Tata Motors and Mahindra, which are investing a significant amount of money in the EV area, these incentives are also anticipated to aid in the development of capacity in a new segment.
Editor’s Note: This news can be looked at in continuation of the above 3 news articles. The PMP is to be extended to the EV segment. The basic principle of the plan is that enterprises would gradually increase their level of localization with the use of a phased manufacturing program.
Foxconn increases commitment for $550 million in Telangana
Foxconn has announced plans to “add another $400 million” to their investment in India. The largest supplier to Apple is likely to use the new Kongarkalan factory to produce AirPods and other electronic accessories.
According to V Lee, a representative of Foxconn India, the Board of Directors of FIT Hon Teng Ltd (Foxconn) has approved a $400 million investment in Telangana. Telangana Minister for IT and Industries KT Rama Rao tweeted on August 12 in response to V Lee’s post, stating that the new investment plan is in addition to the $150 million previously promised.
The $400 million investment by Foxconn Interconnect Technologies into its Telangana project has been approved by the company’s board of directors, bringing the total commitment to $550 million. The company informed the Hong Kong Stock Exchange of the board’s decision.
Maya OS to replace Windows in India’s defense ministry
According to a recent article in The Hindu, a new operating system known as Maya OS would be used by all ministry computers that require the internet. The Indian Defence Ministry has made Maya OS mandatory for all computers due to an increase in cyberthreats. Linux-based Maya OS will now take the role of Windows on all ministry computers. It is similar to Microsoft Windows and is based on the free and open-source operating system Linux, making the switch easier.
All Ministry of Defence computers in the South Block that were online before to August 15 had Maya OS installed on them, according to the story, which quotes a government official.
While the Air Force and the Army are now evaluating the operating system, the Navy has given their approval.