Vaishnaw warns industry; says disbursement under ECMS will stop if design, Six Sigma quality not met

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, the minister 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," Vaishnaw said.

The minister pulled up industry body ICEA (India Cellular and Electronics Association) and their member firms 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," the minister said.

While noting that the government has ensured timely approvals, the minister said the industry must now step up.

"So while we as the government 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 and you have to scale up your efforts and ambitions on these aspects," Vaishnaw said.

The minister 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 design, component design and 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.

"I'm willing to stop any further disbursements or approvals if the industry doesn't come up with the commensurate efforts. This is my single message today. I'm glad that we have now 75 projects approved... this is great journey, but we should not be satisfied. We have to really go deep in design, quality, talent, and in supply chain," Vaishnaw said.

It is pertinent to mention here that the minister had asked the industry in January to prioritise setting up design teams and had nudged players to go for Six Sigma to be competitive in global supply chains.