ELECTRONICS MANUFACTURING - A KERALA PERSPECTIVE

ELECTRONICS MANUFACTURING

- A KERALA PERSPECTIVE

P H KURIAN , IAS Principal Secretary to Government Department of IT and Industries

Government of Kerala

IESA VISION SUMMIT -‐ 2014 , 3-‐4 Feb

Area: 38,863 sq.km (1.18% of India)

PopulaFon: 33.3Mn (2.75% of India)

Coastal length: 600km (8% of India’s coast)

Literacy rate: 94% (NaFonal avg: 74%)

High life expectancy: 74 yrs (India: 67 yrs)

QLI comparable to developed naFons

English widely spoken

Economic Indicators reflect Kerala’s silent growth

CAGR of GSDP (last 10 yrs*) : 10.03% (India: 9.86%)

CAGR of PCI (last 10 yrs*) : 13.17% (India: 12.54%)

* 10 years from 2002-‐03 to 2011-‐12

The Kerala Scenario

Kerala Scenario

!   A thrust area – Policy focus and investment !   Factor advantage created by

!   Providing the connecFvity (Rail, Road, CommunicaFons , Port) !   lower operaFng cost by virtue of (power tariffs, tax concessions etc) !   Special Economic zones, subsidized infrastructure faciliFes etc

Create your footprint in the “Gods own Country”

STATE BOARD

DISTRICT BOARDS

INDUSTRIAL AREA BOARD

CHIEF SECRETARY

DISTRICT COLLECTOR

AN OFFICER NOT BELOW THE RANK OF DISTRICT COLELCTOR

Single window clearances

Manufacturing -‐ ExisFng units -‐ New units

Extended operaFons

Infrastructure -‐ Electronics manufacturing clusters uFliFes logisFcs/connecFvity policies

R&D -‐ Contract R&D -‐ CoEs, Research InnovaFon labs

PUBLIC SECTOR COMPANIES

JOINT VENTURES

Technology incubaFon centers

PRIVATE ENTERPRISES

KINFRA KSIDC Technopark

T-‐TBIC, Startup Village

CDAC CET NIT

SFO FCI OEN BPL

KELTRON TELK TRACO

Kerala Electronics Scenario


Traco Cable Co Ltd

Transformers and Electricals Kerala Ltd

(TELK)

Kerala State Electronics Development Corp

(Keltron)

• Traco Cable Company Limited commenced operations in 1964. It manufactures high quality cables and wires in technical collaboration with Kelesey Engineering Co Ltd, Canada. TRACO currently meets the needs of public sector undertakings in India such as railways and the electricity boards of various states. The company is headquartered in Kochi, with factories in Ernakulam, Kannur and Thiruvalla.

• TELK was incorporated in 1963 under an agreement with the Government of Kerala, Kerala State Industrial Development Corporation and Hitachi Limited, Japan. It manufactures transformers, bushings and tap changing gears. The factory and corporate office are located in Angamally, near Kochi. In 2012. TELK won the Kerala Safety Award for very large factories in the engineering category.

• TELK provided its first 400KV Class Transformer, 315MVA Auto Transformer and Generator Transformer for India's first 500MW Thermal Unit.

• Founded in 1973, Keltron is a state-owned electronic enterprise, employing around 1,800 people and has 10 production centres. It provides technical manpower to major organisations such as Oil and Natural Gas Corporation Limited (ONGC). The company’s products span categories including aerospace electronics, security and surveillance systems, intelligent transportation systems, strategic electronics products, IT solutions, IT infrastructure solutions, process automation, ID card projects, power electronics, electronic components and TE units. Recently the company bagged an order of US$ 4.6 million from Chennai-based BGR Energy System Ltd. The order was for manufacture, supply, assembly and commissioning of sixteen UPS systems, inverters, battery and boost chargers.

• Keltron is headquartered in Thiruvananthapuram and has training centres in 30 locations across Kerala.

Government players


!  Associated with the growth of the industry in Kerala (1980s)

!  First State Electronics Development CorporaFon

in India.

!  40 Years of Service.

!  Six Manufacturing Centers

!  Eight MarkeFng and Customer Service Centers

across India

! DeiTY has cleared the appl icaFon for

manufacture of Digital Set Top Box under Special

incenFve Scheme

!  Planning to Set up test facility for Sonar array for

defense applicaFons

Nodal Agency for Electronics

Defense Electronics Space Electronics Security & Surveillance AGendance Management & Access Control Traffic Management Control & InstrumentaKon Power Electronics Solar Power Plants IT & ITES Electronic Components Knowledge Services LED lights Disaster Management Products Contract Manufacturing Service


Cochin Headquarters

Electronics /RF Manufacturing

Design and Development Center

Fiber OpFcs

Wire Harness

Power Supplies

Tool Room


Taking Kerala towards a Great revoluFon

Technological

Economic Demographic

The Startup Movement Telecom infrastructure (March 2013)

Wireless subscribers# 30,692,668

Wire-line subscribers# 3,064,818

Broadband subscribers 931,560*

Post offices 5,067^

Telephone exchanges 1,243*

Teledensity (in per cent)# 96.20

Sources: Telecom Regulatory Authority of India, Department of Telecommunications Annual Report 2011-12,

Ministry of Communications and Information Technology, India Post *As of December 2011, ^As of January 2013, #Including Lakshadweep

Kerala had an overall tele-density of 96.1 per cent compared to an all-India average of 73.3 per cent, as of March 2013. The state has 1,243 telephonic exchanges. About 98.0 per cent of Kerala's telephone exchanges have internet connectivity through the National Internet Backbone (NIB). VSNL has an international communication gateway in Kochi, with two high-speed submarine cable landings (SEA-ME-WE-3 and SAFE), offering 15 gigabytes per second (Gbps) bandwidth. According to the Telecom Regulatory Authority of India (TRAI), as of March 2013, Kerala had nearly 30.7 million wireless subscribers and 3.1 million wire-line subscribers (including Lakshadweep). The state is planning to build a telecom city near Technopark in Thiruvananthapuram, with an investment of around US$ 208.6 million.

Major telecom operators in Kerala

Bharat Sanchar Nigam Limited (BSNL) Bharti Airtel

Aircel Limited Vodafone Essar

IDEA Cellular Tata Teleservices

Reliance Communications

Source: Telecom Regulatory Authority of India

InnovaFon &

entrepreneurship

E-‐literacy 100%

Literacy 100%

Electronics manufacturing -‐ why Kerala ? !   ConnecFvity

!  Physical (Road networks, Airports, Ports )

!  ICT -‐ Telecom service providers, high PC and Mobile penetraFon

!  Land availability and affordability (w.r.t comparable ciFes)

!  Investor Friendly Environment

!  Single-‐window-‐clearance

!  Weather and surroundings

!  Pleasant weather throughout the year moderate variaFons

!  No extreme climaFc condiFons,

!  No threat of major natural calamiFes

!  Stable law and order situaFon


!   High Social Indices

!  Literacy rate: ~ 94%

!  High Human Development Index of the state residents

!  EducaFon

!  Availability of trained manpower from a handful of Technology , Arts and

Science Colleges,

!  Abundance of professional colleges and polytechnics and industrial training

insFtutes

!  84 Engineering Colleges from which nearly 16000 students graduates per year in

Electronics & allied branches

!  50 Polytechnics which generates around 5000 Diploma holders in Electronics &

allied branches


Electronics manufacturing -‐ why Kerala ?

Advantages of EMC @ Kochi !   The commercial capital of Kerala

!   Ranked by NASSCOM as the 2nd best city in India for IT-‐based services

!   Proximity of Info Park and Upcoming projects (Smart City, Hi-‐Tech City , Technology

InnovaFon Zone etc

!   Landing point for submarine cables

!   SEA-‐ME-‐WE-‐3 & SAFE

!   a band width of 15 Gbps at Cochin

!   Presence of Cochin Special Economic Zone (CSEZ)

!   Vallarpadam SEZ & the InternaFonal Container Transhipment Terminal

!   Puthvypeen SEZ & the LNG terminal under development

!   LogisFcs enhancement by means of airport seaport road linkages

!   Established Industrial clusters and major players


Proposed EMC at Kakkanad !  The proposed locaFon is at Kakkanad ,Kochi

!  Extend of land -‐75 acres

!  Land in possession of KINFRA

!  Proximity to Cochin InternaFonal Air Port

!  ConnecFvity through Rail network

!  Road connecFvity through Airport Seaport road

!   Proximity to the Vallarpadam InternaFonal container terminal

!  A direct beneficiary of the proposed LNG terminal


In principle approval of DEITy under the EMC scheme

Preliminary Detailed Project Report – EMC Kakkanad

1

P R O J E C T P R O P O S A L

Prepared for: Department for Electronics and IT, GoI Prepared by: Kerala Industrial Infrastructure Development Corporation

Date: September 12, 2013 Proposal: Preliminary DPR for Electronics Manufacturing Hub, Kochi


Kakkanad -‐ Site details

Proposed Project Components !   Ready to operate Office Space

!   Business centers on rent

!   Manufacturing Space

!   Built up /furnished

!   Developed plots

!   Storage space/Ware housing facility

!   Raw materials

!   Finished goods

!   In house containerizaFon facility

!   Customs clearances


Proposed Project Components !   LogisFcs coordinaFon facility

!   Ancillary Infrastructure

!   ConnecFvity (Rail,Road, Port, ICT)

!   Container depots/yards

!   C&F facility

!   Power and water

!   Waste management


Project ImplemenRng Agency -‐ KINFRA


Government support/schemes in Kerala

!   Electronics Manufacturing Cluster Scheme (EMC)

!   In principle approval for EMC Kakkanad, Kochi

!   More potenFal sites idenFfied for electronics clusters

!   Modified Special IncenFve Package Scheme (M-‐SIPS) !  Brownfield clusters approved under MSIPS at Thiruvananthapuram and Alappuzha

!   Favourable IT and ESDM policy direcFons

Create your footprint in the

“Gods own Country”

Thank you

Documents

ELECTRONICS MANUFACTURING - A KERALA PERSPECTIVE