Government’s strict message: If rules are not followed, money will stop, 15 days ultimatum on companies

Ashwini Vaishnaw Statement: The government has now started adopting a strict stance to strengthen electronics manufacturing in the country. Union Minister Ashwini Vaishnav has warned in clear words that if the companies do not meet the set standards, then the government funding they receive can be stopped. This decision will have a direct impact on those companies which are availing benefits under the Electronics Components Manufacturing Scheme (ECMS).

What is the whole matter?

Recently the government has approved 29 new proposals under ECMS, which involve an investment of about Rs 7,104 crore. But along with this, the government has made it clear that companies which do not invest in product design technology can be excluded from this scheme. Ashwini Vaishnav took a tough stance and said, ‘If necessary efforts are not made by the industry, I am ready to stop any further payments or approvals.’

Reprimanded the industry

The minister also strongly reprimanded the industry body ICEA (India Cellular and Electronics Association) and the companies associated with it. He says that the companies are not properly following the integrated approach decided by the government. He clearly said that now the country will have to become self-reliant not only in manufacturing but also in design and quality.

Anyone who does not invest will be excluded

Ashwini Vaishnav said in a very harsh tone, ‘With time, those who will not invest in design will be thrown out. We will ensure that they are thrown out. I am saying this very clearly and openly, because it is very, very important for our country, and in our party, we always believe in ‘nation first’ We believe in always coming first” He also emphasized that India will have to move forward rapidly in the fields of electronics design, component design and machine design.

15 days ultimatum

The government has given a time limit of 15 days to all the companies, in which they will have to tell what steps they are taking to fulfill the conditions of the government.

These conditions include:

• Investment in product design technology
• Adopting Six Sigma Standards
• talent development
• Promote local sourcing

Six Sigma is a technique that ensures almost perfect quality by reducing defects in production.

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Eye fixed on 75 companies

The government has made it clear that all the 75 applicants approved so far under ECMS will have to present their strategy within this stipulated time. The path ahead may be difficult for companies that do not meet this criterion.

What will be its effect?

This strict step of the government will promote quality and innovation in the electronics sector. Also, this can prove to be a big step towards making India a global manufacturing hub.