Disbursement under ECMS will stop if design, and Six Sigma quality not met, says Vaishnaw

New Delhi: Electronics and IT Minister Ashwini Vaishnaw on Monday issued an ultimatum to electronics component industry to act swiftly on the Centre’s key asks for a concrete plan on building design capabilities, achieving Six Sigma quality standards, and enhancing workforce skilling — or else risk losing out on disbursements and new approvals under the Electronics Components Manufacturing Scheme (ECMS).

After granting approvals to 29 proposals under ECMS entailing fresh investment of Rs 7,104 crore, Vaishnaw cautioned that beneficiaries who do not invest in product design could be weeded out. “I am willing to stop any further disbursements or approvals if the industry doesn’t come up with the commensurate efforts,” he said.

The minister pulled up industry body ICEA (India Cellular and Electronics Association) for not adhering to the integrated approach set by Meity to boost high quality and self-reliant electronics manufacturing. “I request the industry whichever way you are organised... be it ICEA, MAIT, any other association... to come out with a proper structured program. Because in the last meeting the industry had committed that by March-end they will have a proper structured program on all the four aspects but I don’t see it, so far,” he said.

“So while we are trying our best, it is now... the ball is in the industry’s court... to come up with equal efforts. The efforts that we are making as government, you have to be in tango & you have to scale up your efforts and ambitions on these aspects,” he said. He warned that continued inaction — despite government asks — could result in weeding out of proposals.

“Over a period of time those who do not invest in design will be weeded out. We will make sure that they are weeded out. I am saying that very blunt and very open because that is very very important for our nation and we in our party, we always believe nation first, always first,” the minister said. Vaishnaw emphasised that the country needs to get into electronics, component & machine design.

The minister has given a 15-day deadline to the industry to update the government on steps taken by the players on four key asks — product design, Six Sigma standards, talent development and local sourcing. Six Sigma is a methodology aimed at minimising defects and ensuring near-perfect output. Delivering the ultimatum to the industry in a packed hall, Vaishnaw said all 75 applications approved to date under ECMS will have to share their plan within 15 days.