Policy Scan Govt. Policy, Business Procedures & Regulations

Refund of 4% CVD (SAD)-Extension of time up to 31st March 2012 for Using re-credited 4% CVD(SAD) amount in DEPB

The Central Board of Excise and Customs (CBEC) has issued Circular No.02/2012-Customs dated 16-01-2012 on the above subject.  CBEC had issued Circular No.30/2011 earlier on 19/7/2011, providing the facility of manual filing of Bill of Entry for utilizing  the amount of re-credited 4% CVD refunds (SAD) for payment of duty in case of re-credited DEPB/Reward Scheme scrips up to 15-09-2011.  On several representations having been received from trade and industry to extend the time limit for using re-credited 4% CVD (SAD) amount in DEPB as they have not been able to utilize the re-credited DEPB/Reward Scheme scrips within the stipulated time it has been decided to extend time limit up to 31.03.2012.  No further extension shall be given under any circumstances.

(Cus.Cir No.02/2012, Jan 16, 2012)

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Industry Scan

FDI Inflows Show India Attractive

E&Y: India witnessed the second highest growth in FDI inflows in the world during 2011, which helped generate over two lakh jobs, reflecting robust faith of international investors in Indian growth and allaying fears of its fading global sheen.

Although, some international companies have expressed concern over stalled decision-making in the Indian bureaucracy, the majority has expressed intent to expand operations within the country during 2012, according to Ernst & Young attractiveness survey. 

Technology remains the most attractive sector with 146 projects and growth of 51% in value of FDI inflows during the first eleven months of 2011.  Other attractive sectors are automotive and retail and consumer products with a growth of 38.2% and 31.7%, respectively, during the period.

(ET, Jan 30, 2012)

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Set-Top Box shortage as digitization deadline approachs

Five months before time runs out for homes across India’s top four metros to switch to digital transmission to continue watching cable television, operators are battling short supply of set-top boxes as well as ignorance among consumers. 

More than 60,000 set-top boxes need to be installed every day to enable an estimated 10 million homes across Delhi, Mumbai, Chennai and Kolkata to meet the deadline mandated by the government.

But with India going digital at the same time as Brazil, Russia, China and South Korea among other countries, set-top box makers are finding it difficult to meet delivery deadlines.  This is the case even as most leading manufacturers, based in China, have ramped up production manifold.

(ET, Jan 30, 2012)

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Electronic security of Banks

The Reserve Bank of India (RBI) would adopt a strict approach towards bank that don’t implement the recommendations of the Gopalakrishna Committee report on electronic security. 

“The banking regulator expects reasonable compliance.  RBI will take serious action against those banks that do not implement the recommendations on Electronic Security.  By October 2012, banks will have to implement the recommendations.  At present, some banks do not have proper security policy, methods to monitor the service level agreements with third parties and inadequate audit trail.”

(FE, Jan 28, 2012)

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Finmin wants Spectrum to be used as Collateral for Loans

The finance ministry has asked for a change in norms to allow spectrum to be used as collateral by lenders of telecom companies, saying this will ease the stress on the country’s banking sector.

The finance ministry has asked the telecom department to make policy changes to ensure that airwaves can be seized by banks in the event of a default or cancellation of mobile permits. 

Over the past 12 months, banks have almost stopped lending to telecom companies but if the norms are changed, it will make it easier for telcos to raise loans. 

(ET, Jan 27, 2012)

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Google overhauls user privacy policies

Google has paved the way for the introduction of a raft of more personalized services and advertising online, as it disclosed an overhaul of the privacy policies and terms of service that cover many of its different products.

The changes also marked a new front in the company’s battle for user     attention with Facebook, reflecting the sea-change in its relationship with its users that has been underway as it has moved beyond its core search business. 

Under its new policies, Google said it would be freer to deploy its users’ personal information across a wider range of services, bringing a more personal experience to everything from search to Gmail.

(FE, Jan 26, 2012)

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In relief to cos, excise duty likely to be kept at 10%

Finance Minister Pranab Mukherjee is likely to retain standard excise duty at 10% in the 2012-13 Budget, a move that would provide some relief to corporate India as industrial growth is expected to be moderate next fiscal due to slow down.  Given that excise collection has shown only moderate growth this fiscal, a hike in excise duty is not being considered, an official said.

(FE, Jan 23, 2012)

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IMF to seek $1-trn war chest for lending boost

The International Monetary Fund is proposing a $1 trillion expansion of its lending resources to safeguard the global economy against any worsening of Europe’s debt crisis, according to an official at a Group of 20 (G20) nation.

The Washington-based lender is pushing China, Brazil, Russia, India, Japan and oil-exporting nations to be the top contributors, according to the official.

(FE, Jan 19, 2012)

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GST rollout unlikely in this Budget Session

Finance Minister Pranab Mukherjee is likely to disappoint those who are looking for clear schedule for the rollout of Goods and Service Tax (GST) in Budget 2012-13.   In his budget speech, Mukherjee is likely to ask all parties to support the government on this major tax reform without giving any specific timeline to introduce the new indirect tax regime, a person involved in the budget making process told FE.

(FE, Jan 18, 2012)

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Samsung plans $41-bn investment in 2012

Samsung group, which includes Samsung Electronics says it is raising its 2012 investment to a record $41.4 billion, as the South Korean conglomerate seeks to consolidate its leading position in mobile chips and flat screens.  Best known for making massive investments in new technologies ahead of rivals, Samsung is now banking on Logic chips and OLED displays to repeat its roaring success in flash chips computer memory chips and LCD flat-screens.

(FE, Jan 18, 2012)

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Exports rise 6.7% in December

India’s exports rose 6.7% in December to $25 billion, apparently reversing the trend of declining growth in recent months, and also reviving hopes that the $300 billion export target for the fiscal 2011-12 would be met.  Commerce Secretary Rahul Khullar, however, said things might not be rosy next year given the likely demand slump in the US and EU markets.

With imports growing at 19.8% to $37.8% billion in December, the trade deficit for the month stood at $12.8 billion, a bit lower than the average monthly deficit of around $14 billion till November.

(FE, Jan 17, 2012)

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IT & Services

Dell readies Rs.5000 crore war chest for India buyout to boost IT biz

Dell is on the prowl for an India acquisition worth up to $1 billion (Rs.5000 crore), part of a strategy to bolster its information technology services business and compete better against the likes of IBM and Accenture.

The world’s third-largest computer maker wants to buy a mid-sized Indian tech firm with “several thousands of staff” and revenues of $500 million to $1 billion or even more, Suresh Vaswani, chairman of the company’s  Indian operations and executive vice president of the Dell’s global application and BPO business, told ET.

(ET, Jan 31, 2012)

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Indian IT spending to grow 10.3% in 2012

IT spending across industries is forecast to surpass $39 billion in 2012, a 10.3% increase from the previous calendar year figure of $36 billion, says research firm Gartner.  “The retail industry is expected to achieve the strongest growth in percentage terms, where IT spending is forecast to grow 11.8%”, the report said.

(HT, Jan 25, 2012)

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Micro Tech to execute project worth Rs.160 crore

Micro Technologies  (India), a FIT security-based R&D Company, will execute a project worth Rs.160 crore for creating a highly-secured communication system ‘Video over Broadband.’  The system includes the security surveillance with access control for the disaster recovery center including supply of the infrastructure which has high end servers and network facility to handle clients.

(FE, Jan 24, 2012)

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Internet penetration to boost India’s GDP (increasing number of internet and broadband connections will add $17 billion annually to country’s economy, says report )

Growing number of Internet and broadband connections can give the Indian economy the much-needed fillip by adding $17 billion to the gross domestic product (GDP) annually.

According to a report India: The impact of Internet a 10 per cent increase in internet penetration can increase the GDP by 1.08 per cent.  This will help the country add $17 billion annually.

It added that an additional $87 billion in GDP during 2012-14 can be generated if the targets are achieved according to TRAI’s National Broadband Plan.

India has over 100 million internet users and the number of broadband users according to the latest data is just over 13 million. However, the dividend yield by Internet penetration is still lower than that of mobile phone.

A 10 per cent increase in mobile penetration can increase the GDP by 1.5 per cent.  The number of mobile users in India is close to 900 million.

(BS, Jan 20, 2012)

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Samsung plans $41-bn investment in 2012

Samsung group, which includes Samsung Electronics says it is raising its 2012 investment to a record $41.4 billion, as the South Korean conglomerate seeks to consolidate its leading position in mobile chips and flat screens.  Best known for making massive investments in new technologies ahead of rivals, Samsung is now banking on

Logic chips and OLED displays to repeat its roaring success in flash chips computer memory chips and LCD flat-screens.

(FE, Jan 18, 2012)

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Govt to roll out upgraded Aakash-II in April

Amid complaints with regard to the quality of the low-cost ‘Aakash’ tablet, the Government says it is hopeful of bringing out an upgraded version of the devise.  Aakash-II, by April this year.  The first model was launched in 2011.

To cater to the huge demand, we need several manufacturers to produce Aakash.  We are enhancing the specifications on the basis of feedback we received from the first version of Aakash.  So we want to make sure that the upgraded product caters to the need of the customers.  We have involved ITI to upgrade it.  We will be able to bring in Aakash-II by April HRD Minister Kapil Sibal said.

(BS, Jan 17, 2012)

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Cloud computing moving from theory to practice

The IT Industry has undergone some fundamental changes in the past few years, thanks to a slew of technologies that became popular.  Technology advancements are seen to be trending to drive long-term efficiency while providing the foundation for new business growth initiatives.

As the global economy meanders through continued malaise, IT organizations will be faced with the pressure of doing more with less.  This is hardly a new-theme and has been a driving force in organizations for the past decade.  Economic challenges mean that IT budgets will likely remain flat or grow only modestly, creating situations where new initiatives can only begin if costs are removed or reduced from other business areas.  However, the good news is that there are several ways to help organizations become more efficient to free up budget and resources for higher-value, critical IT projects.  These include:

• Resource utilization improvements through continued consolidation and virtualization.

• Automation and self-service in areas such as provisioning and identity management.

• Initiatives that reduce the costs for power, cooling and physical facilities.

There are three irrefutable requirements that will continue to drive the IT Organisations – the ever-growing demand for increased compute capacity, application performance and data volumes.

(FE, Jan 16, 2012)

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Telcos get Telecom Commission approval to share spectrum (but this sharing is limited to 2G airwaves and telcos cannot share 3G spectrum)

The Telecom Commission, the apex decision-making body of the communications ministry had decided to allow mobile phone companies to share spectrum, but has limited this facility to 2G airwaves alone.  Second generation (2G) spectrum is largely used for offering vanilla voice services.  This means telcos cannot share 3G spectrums.

The TC has also decided to introduce a slew of riders to govern spectrum sharing.  First, only those operators that have airwaves in a particular region can share it.  For instance, Uninor or Tata Teleservices which does not have 2G spectrum in Delhi, cannot share airwaves with any other operator that has radio frequencies here and launch GSM-based cellular services.  “Spectrum can be shared only between two spectrum holders… In other worlds, a non-licensee or licensee who has not been assigned spectrum as yet cannot be party to spectrum trading.  This is contained in the minutes of the latest TC meeting.

(ET, Jan 31, 2012)

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Apple regains lead in smart phone market

Apple Inc regained the lead in global smart phone shipments from Samsung Electronics last quarter after starting sales of the latest version of the iPhone, according  to data from Strategy Analytics.

The US Company shipped 37 million smart phones in the three months ended Dec 31, giving it a worldwide market share of 23.9%, Strategy Analytiucs said in an emailed statement.  Samsung’s shipments rose to 36.5 million, while those at third-ranked Nokia Oyj dropped to 19.6 million.

(TOI, Jan 28, 2012)

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Nokia gaining ground in smart phone war

Nokia Oyj, a year into an alliance with Microsoft to regain market share lost to Apple, sold more smart phones last quarter than projected, sending the shares 7% higher.

Nokia sold 19.6 million smart phones that can handle tasks such as video calls and showing movies, says the Espoo, Finalnd-based Company.  Analysts had predicted sales of 18.5 million smart phones.  Apple sold 37 million iPhones in the period.

(ET, Jan 27, 2012)

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Feel Industry Pulse before changing Policy – Telecom Captains to Government

Call tariffs in India will rise if the government raises levies on spectrum allocated to telecom operators. Industry seeks a stable regulatory policy and early announcement of the long overdue New Telecom Policy

There needs to be a balance between what the government can extract from this industry and what the Industry can pay.

.                                                                                                            (ET, Jan 27, 2012)

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After tax case win, Vodafone looks at NTP before listing

After its victory in the Rs.11,000 crore tax dispute with India’s income tax department, Vodafone, the world’s largest mobile operator by revenues, is awaiting the new telecom policy (NTP) before finalizing plans to list its Indian arm.

An indicating to this effect was given by its global CEO Vittorio Colao when he told Reuter’s at the World Economic Forum in Davos: “Clearly, the tax case was one of the elements, but of course, the new telecom policy is going to be another very important element.”

(FE, Jan 27, 2012)

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Micro Tech to execute project worth Rs.160 crore

Micro Technologies  (India), a FIT security-based R&D Company, will execute a project worth Rs.160 crore for creating a highly-secured communication system ‘Video over Broadband.’  The system includes the security surveillance with access control for the disaster recovery center including supply of the infrastructure which has high end servers and network facility to handle clients.

(FE, Jan 24, 2012)

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Philips struggles to stay afloat

Dutch electronics giant Philips, best known to consumers for its electric toothbrushes, TVs, wake-up lights and coffee makers, is struggling to boost profits and ease the impact of slowing growth as it restructures and streamlines to compete in weak European markets flooded with lower cost Asian rivals.

Single-cup coffee brewers catering to demand for convenience and customization have gained massive popularity  in recent years with rival coffee pod systems like Nestle’s Nespresso and Kraft Foods’ Tassimo Senseo’s main competition.

Philips’ Thursday announcement that it would sell its 50% stake in the Senseo coffee brand baffled some Amsterdam based analysts. 

(ET, Jan 27, 2012)

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Riding on Solar Power

In sun-drenched India, the fledgling solar energy market is poised for a vertical take-off aided by falling solar panel prices, mirroring the now famous Indian telecom revolution. 

Welspun Group is lining up ambitious plans to be among the top three producers of solar power in the country in the next two-three years by producing at least 500 MW of solar power by 2014.

Already the price per unit has come down from Rs.18 to Rs.8.50 and it will fall further as technology improves solar energy evangelists expect grid parity to happen by 2015.  “As the solar tariff approaches grid parity, the sector will start growing exponentially.

(ET, Jan 30, 2012)

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Govt. okay with Chinese Solar Cells imports if they met standards

The government says it has no objections to imports of low-priced Chinese solar cells as long as they meet prescribed quality standards.

The government is not in favour of a plea of domestic players seeking imposition of import duty on finished solar equipment.

“The market will always bend towards the products which are low-priced.  But, yes the quality matters,” said Tarun Kapoor, Joint Secretary, Ministry of new and renewable energy.

The Indian government’s stand is in contrast with the US policy, which has taken China to the World Trade Organisation over dumping of solar cells and panels.

India’s National Solar Mission gives preference to domestic manufacturers.  However, this is only at the central level and states are not obliged to follow this policy.

(ET, Jan 19, 2012)

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Business Opportunities/ Enquiries/ Meetings/New Products/Support

ELECTRONICS FOR YOU EXPO 2012

International Exhibition & Conference

Hall Nos. 8, 9, 10 & 11, Pragati Maidan, New Delhi – February 16-18, 2012

The second edition of Electronics For You Expo is scheduled to be held at Pragati Maida, New Delhi during February 16-18, 2012. ELCINA is the Exhibition and Knowledge Partner to the Expo.

ELCINA entered into a strategic tie-up with the EFY Group last year for promoting the show. The 2nd EFY Expo is being planned on a bigger scale and with include conference and technical seminars. A special discount is being offered to ELCINA Members who confirm their participation early.

Members are requested to consider participating in the Expo as exhibitors/ sponsors. More details of the event are available at http://efyexpo.com/expopost/index.php.

For bookings and more details on Special Offers, please contact ELCINA or Mr. Sunil (Tel: 88000 94210).

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Coming Event & General Information

ELECTRONICS FOR YOU EXPO 2012

International Exhibition & Conference

Hall Nos. 8, 9, 10 & 11, Pragati Maidan, New Delhi – February 16-18, 2012

The second edition of Electronics For You Expo is scheduled to be held at Pragati Maida, New Delhi during February 16-18, 2012. ELCINA is the Exhibition and Knowledge Partner to the Expo.

ELCINA entered into a strategic tie-up with the EFY Group last year for promoting the show. The 2nd EFY Expo is being planned on a bigger scale and with include conference and technical seminars. A special discount is being offered to ELCINA Members who confirm their participation early.

Members are requested to consider participating in the Expo as exhibitors/ sponsors. More details of the event are available at http://efyexpo.com/expopost/index.php.

For bookings and more details on Special Offers, please contact ELCINA or Mr. Sunil (Tel: 88000 94210).

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15th International Trade Fair for Electronic Components (Expo Electronica)

Crocus Expo, Moscow – April 11-13, 2012

For details please contact Ms. Anna Semenova, Primexpo Ltd., Tel : +7 (812) 380-60-10/00, Fax : +7 (812) 380-60-01, E-Mail : anna@primexpo.ru, Website : http://expoelectronica.primexpo.com

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Electronica China 2012

Shanghai New International Expo Centre, China – April 20-22, 2012

For details please contact MMI (Shanghai) Co., Ltd., 11th floor, GC Tower, 1088 Yuanshen Road, Pudong New Area, Shanghai 200122, Tel +86-21-2020-5500, Fax: +86-21-2020-5688
E-mail: epc@mmi-shanghai.com, www.e-p-china.com.cn

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Hybridica 2012

Munich Trade Fairs – November 13-16, 2012

For details please contact Ellen Richter-Maierhofer, Exhibition Director, Phone: +49 89 949-20370, Fax: +49 89 949-20379, E-Mail: ellen.richter-maierhofer@messe-muenchen.de,

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Electronica Asia 2012

Hong Kong Convention & Exhibition Centre – October 13-16, 2012

For details please contact Hong Kong Trade Development Council, 38/F, Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong, Tel: (852) 1830 668 , Fax: (852) 2824 0249, E-mail: hktdc@hktdc.org

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India Manufacturing Show 2012

Bangalore International Exhibition Centre,

Bangalore - 27–30 September 2012 

For details please contact India Manufacturing Show, Bangalore Tel : 080-26651234 / 41716085, E-mail : info@ims2012.in,  Website : www.indiamanufacturing show.com 

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Illuminex India 2012

Pragati Maidan, New Delhi - : 27 – 30 September 2012

For details please contact International Trade and Exhibitions Events Pvt.Ltd., New Delhi,

Tel : 011-40828282, Fax :011-40828283, E-mail : krishnavrajan@yahoo.co.in

Website : www.ite-india.com

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Modern Machine Shop 2012

India Expo Mart, Greater Noida, U.P - 05 – 08 April 2012

For details please contact Indian Machine Tool Manufacturers’ Association, Bangalore

Tel : 080-66246600, Fax : 080-66246661, E-mail : info@mmsinfo.in,

Website : www.mmsinfo.in

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LED Expo 2012   

Bombay Exhibition Centre,Goregaon,

Mumbai - 03-05 February 2012

For details please contact  Media Exposition & Events, New Delhi

Tel : 011-26445191/92, Fax : 011-4162086, E-mail : info@themediaexpo.com  

Website : www.theledexpo.com

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Home Electronics Show 2012

Hall No.14, Pragati Madan, New Delhi, 26 – 28 October 2012

For details please contact iTEN Media Pvt.Ltd., New Delhi

Tel : +91 11 46577362  Fax: +91 11 26928611, -mail: sk@itenmedia.in

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ELCINA Events, Activities & Services

ELECTRONICS FOR YOU EXPO 2012

International Exhibition & Conference

Hall Nos. 8, 9, 10 & 11, Pragati Maidan, New Delhi – February 16-18, 2012

The second edition of Electronics For You Expo is scheduled to be held at Pragati Maida, New Delhi during February 16-18, 2012. ELCINA is the Exhibition and Knowledge Partner to the Expo.

ELCINA entered into a strategic tie-up with the EFY Group last year for promoting the show. The 2nd EFY Expo is being planned on a bigger scale and with include conference and technical seminars. A special discount is being offered to ELCINA Members who confirm their participation early.

Members are requested to consider participating in the Expo as exhibitors/ sponsors. More details of the event are available at http://efyexpo.com/expopost/index.php.

For bookings and more details on Special Offers, please contact ELCINA or Mr. Sunil (Tel: 88000 94210).

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ELCINA Directory for 2012

The ELCINA DIRECTORY OF INDIAN ELECTRONICS INDUSTRY 2012 is being compiled and is planned to be released soon. The new Directory will contain key industry production and market data in addition to the other regular sections. This is a handy compendium with easy-to-read format, available in Print & CD Version. 

Price of New Directory (Print + CD Version), including Postage & Handling charges:

For obtaining copies, please send a Demand Draft/at par Cheque favouring “ELCINA Electronic Industries Association of India” to Mr. V.K. Vadhwa/Ms. Tandra Majumder, ELCINA House, 422 Okhla Industrial Estate Phase III, New Delhi-110020, Tel: +91-11-26924597, 26928053, 41615985 Fax: +91-11-26923440 Email: vijay@elcina.com/tandra@elcina.com. Copies can also be collected personally from ELCINA House at New Delhi on payment  through Draft/Cheque/Cash.

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Conference Facility at ELCINA House

The following Conference Facilities are available in ELCINA House for holding conferences/workshops/meetings  etc:-

All the above facilities are available with full power back-up (including air conditioning) with all modern equipments like LCD Projector/Screen, Internet through Wi-Fi, Audio Systems, Collar/Cordless mikes etc..  Beverages/Lunch/Dinner can also be organized on request.  For details and booking, please contact Mr. V.K. Vadhwa in ELCINA House (Tel – 011-26928050, 26924597, email – vijay@elcina.com)

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Forthcoming ELCINA-CKM Programmes 

Continuing its efforts to establish an extensive source of knowledge to serve Indian Engineering and Electronics Industry and cultivate a manufacturing culture in the country, ELCINA-Centre for Knowledge Management (CKM), since its launch in 2008, has been conducting various workshops on a variety of topics of interest to the satisfaction of the industry with focus on quality improvement and enhancing competitiveness. It has also been organizing In-house training workshops in companies for the benefit of the industry and the number of workshops is growing every year. 

For more details and forthcoming programmes, please log on to - http://www.elcina.com/ckm/services-ckm.htm - and/or contact ELCINA Secretariat, New Delhi – tandra@elcina.com, training@ckm-elcina.com, ckm@elcina.com.

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OSRAM PRODUCT DISPLAY CENTRE at ELCINA HOUSE

The 'OSRAM DISPLAY CENTRE' in ELCINA House is a permanent Display Centre and serves to showcase the Indian electronics industry to visitors. The Display Centre has now 15 Full Stalls and 4 Half/Mini Stalls, presently occupied by the following Member-companies. 

Full Stalls

1. Bharat Electronics Ltd, Bangalore
2. EPCOS India Pvt Ltd, Bangalore
3. Vishay Components India Pvt Ltd, Pune
4. Teknik Electromeconic Pvt Ltd, Bangalore
5. SGS Tekniks Manufacturing Pvt Ltd, Gurgaon
6. Samtel  Group, New Delhi
7. Deki Electronics Ltd, Noida
8. Victor Component Systems Pvt Ltd, New Delhi
9. Osram India, Bangalore
10. Elin Electronics Ltd, New Delhi  
11. Bhagyashree Industries, Secunderabad

Half/Mini Stalls

1. Cosonic Components Pvt Ltd, Chennai
2. Servel (India) Pvt Ltd, New Delhi
3. CTR Manufacturing Industries Ltd, Aurangabad

A few Full and Half/Mini Stalls are vacant at present and members interested may kindly contact ELCINA House, New Delhi (saly@elcina.com) for booking the same

Terms and conditions for booking of stalls:-

• Manufacturing & Service Member-companies of ELCINA are eligible to display their products 
• Flexible shelves are provided inside the stalls.  Modification in fixtures of the basic structure will not be possible as it runs counter to uniformity.
• Lockable Storage space will be provided below the stall for brochures/publicity materials etc.
• Audio Visual clip/Power Point presentation will be displayed for the visitors on LCD Panel installed in the Display Area.
• The rental charges for the Stalls for two years – FULL Stall (Rs.20,000/-)  and HALF/MINI Stall (Rs.12,000) + Service Tax (10.3%), as per govt rules.
• Exhibits can consist of product samples, demo kits, brochures, posters etc.  
• Each stall has got one power supply point of 15 Amps.
• Renewal will be for a minimum period of two years or multiples there

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