Manufacturing of

Smart Meters, Smart Cards

and Smart Lighting

IT & ITeS
Government of Gujarat
Contents

Project Concept 3
Market Potential 8
Growth Drivers 12
Gujarat – Competitive Advantage 15
Project Information 16
- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Players/ Machinery Suppliers
- Key Considerations
Project Financials 23
Approvals & Incentives 24
Key Department Contacts 27

Page 2
Project Concept
Smart Meters Overview
The concept
The project envisages setting up of smart meters, smart cards and smart lighting manufacturing.
The manufacturing unit will focus on production, packaging, marketing, sales, distribution, etc. of
the same.

Smart Meters
 Smart meters measure attributes of electricity, natural gas & water delivered to consumers and
transmit the information to utility companies digitally.
 Traditional electronic meters capable of only one-way communications are referred to as
Automated Meter Reading (AMR). Smart meters replaces the old electronic meter with two-way
communications technology for information, monitor, and control commonly referred to as
Advanced Metering infrastructure (AMI).
 Smart meter systems collect data locally and transmit it to a data collector via local area
network (LAN). The collector retrieves the data and transmits to the utility central collection
point via wide area network (WAN) for processing and use by business applications. Since the
communications path is two-way, signals or commands can be sent directly to the meters,
customer premise or distribution device.
 Smart meters not only benefit the utility by lowering the operating costs by eliminating several
physical activities such as meter reading, collections etc., but also provides immense benefits to
the customers such as better outage restoration along with improved energy management.
Smart Meter System Basic Architecture

Smart Meters LAN Collectors WAN Applications

Types of smart meters

Simple Basic Advanced

Simple smart meter

Simple smart meter provides significant capabilities beyond the traditional automated meter reading
(AMR) systems, including low-speed or potential short-range communications. It may not
necessarily provide the full capabilities of AMI, such as hourly interval measurements or reasonably
symmetric two-way communications.

Page 3
Project Concept
Smart Meters Overview
Basic smart meter

Basic smart meter records customer usage and other parameters, hourly or more frequently. It also
provides daily or more frequent transmittal of measurements over a two-way communications
network to a central collection point.

Advanced smart meter

Advanced smart meter combines a basic smart meter with additional capabilities for remote
disconnect-reconnect and home area network (HAN) gateway functions.

Advantages of smart meters

 Reduced cost of meter  Reduced back office

reading rebilling
 Eliminates handheld  Early detection of
Customer meter reading equipment meter tampering and Revenue
Services  Reduced call center theft Cycle
transactions  Reduced billing errors Services
 Reduced collections and  Accurate billing
connects/disconnects

 Better data access to  Improved transformer

manage energy use load management and
 Timely billing capacitor bank switching
 Improved data for more Transmission
Utility  Improved/increased rate
options reliable service, losses, and
Customers and loading Distribution
 Improved outage
restoration  Improved data for
efficient grid system
 Power quality data design

Page 4
Project Concept
Smart Cards Overview

Smart Cards
 Smart cards are pocket-sized cards embedded with integrated circuits that can be used for
individual identification and authentication by organizations in several sectors such as banking,
financial services, and insurance (BFSI); transportation; government; healthcare and others.
 Smart cards are capable of connecting to a reader with direct physical contact or with a remote
contactless radio frequency interface. With an embedded microcontroller, smart cards have the
unique ability to store large amounts of data, carry out their own on-card functions and interact
intelligently with a smart card reader.
 Major advantages of smart cards include ability to track records in real-world applications,
highly durable, quality adherence to international standards and secure storage of data.

Types of smart cards

Contactless Contact-based

Contactless smart card

Contactless cards generally use the radio-frequency (RF)

induction technology for data and information transfer. These
cards use inductors to capture the incident RF interrogation
signal, which is rectified and used as power for the card's
electronics. The card then sends signals to the card reader,
which transfers the data and information into the system.
These smart cards sometimes require a PIN to access
various applications, such as transit ticketing and payment.

Contact-based smart card

Contact-based cards include gold-plated contact pads having

a contact area of approximately one square centimeter.
These contact pads provide electrical connectivity when
inserted into the card reader. The readers act as a
communication medium between the point of sale system or
computer and the smart card. They help transfer the data in
the card into the system, enabling monetary transactions or
information transfer through the card.

Page 5
Project Concept
Smart Cards Overview

Smart Cards Memory

 Smart cards have 3 types of memory viz. permanent memory, programmable non-volatile
memory and volatile memory.
 Permanent memory is primarily known as read-only memory (ROM) and is generally placed in
the smart chip at the time of manufacture. The ROM in a smart chip can never be changed.
 Programmable non-volatile memory, also known as electrically erasable programmable read-
only memory (EEPROM), helps increase the smart card's flexibility by permitting changes in the
program after manufacturing.
 Volatile memory or random access memory (RAM) is a temporary storage area designed in
a way that it loses its content when the power supply to the card is blocked.

Applications

 Use of electronic purses to make payments at retail stores and for

Financial online shopping.
applications  NFC-based payments and contactless credit and debit card.

 Electronic toll collection and automatic fare collection for parking

Transportation lots.

 Smartcards can be used at enterprises to secure access to

Enterprises and workplace.
Retail  In retail, loyalty points for shopping can be offered through
contactless smart card.

 In healthcare, smart cards can secure patient's information and

reduce healthcare fraud.
Healthcare and
 Smart cards can be used by educational organizations to provide
Education holders with access to libraries, vending machines, and
transportation facilities.

Government  Smart cards can be used for contactless identification of citizens.

Page 6
Project Concept
Smart Lighting Overview

Smart Lighting
 Smart lighting are embedded with wireless chips to communicate wirelessly with mobile
computing devices such as smartphones and smart watches.
 It comprises of the Internet of Things (IoT) which is a network of physical or tangible devices
such as smart appliances and smart TVs that can communicate among themselves and with
the external environment when required using the internet.
 Smart lighting offers several benefits such as optimized decision-making, ease of handling
emergencies, reduced cost, enhanced quality of living, remote control access, effective time
management, and improved safety and security.

Wireless Industry Alliances

 Smart or connected lighting enables consumers to control their lights via wireless technologies
such as Bluetooth low energy (BLE), ZigBee, Wi-Fi, Z-Wave, Thread, and 6LoWPAN, open
source, etc.
 Several industry players have collaborated to establish wireless alliances to enhance
compatibility and interoperability among IoT devices. Some of them are listed below.

Wi-Fi Alliance

Wi-Fi Alliance is an industry trade group that endorses Wi-Fi technology and gives certification to
Wi-Fi products that conform to certain standards of interoperability.

ZigBee Alliance

ZigBee Alliance sets innovative standards for connecting several devices and enables
organizations to assist their customers in creating M2M wireless sensor networks.

HomePlug Powerline Alliance

HomePlug Powerline Alliance is a group of electronics manufacturers, retailers, and service
providers which establishes standards for several powerline communication technologies.

Consortium for Smart Energy Profile 2 Interoperability

The Consortium was founded by HomePlug Powerline Alliance, Wi-Fi Alliance, and ZigBee
Alliance to establish the interoperability of products.

Open Source Software

For the projects under Digital India, to "ensure efficiency, transparency and reliability of such
services at affordable costs“; the OSS is promoted and included in the policy form by Government
of India.

Page 7
Market Potential
Smart Meters

Global Smart Meters Market

Global Smart Meters Unit Shipments 2013-2023 (in million units)

114 112 116

105 109
94 97 89 92
87
79 3%
Expected CAGR for
global smart meters
shipments from 2013
to 2023

Source: Navigant Research

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

 Asia Pacific is the biggest smart meters market in terms of installed base and revenue while
North America has the largest smart meter penetration.
 The global smart meters market revenue is expected to grow from $4.4m in 2013 to reach
$6.6m in 2023 at a CAGR of 4.2%.
 European smart meter deployments is expected to increase on account of countries like UK and
France moving ahead with widespread rollouts to meet the EU target of 80% penetration by
2020.
 Major growth in the new decade is expected to be achieved on back of upgrades in China and
India. Shipments in Latin America will also help spur growth, as countries like Brazil, Mexico, and
Chile are expected to deploy smart meters as part of grid modernization.

Smart Meters: Indian Scenario

Planned AMI rollout
 Central Electricity Authority has developed
specifications for smart meters. With 14 pilot  Customers with connected
projects scheduled, the smart meter installation 2017 load over 20 kW
base is expected to reach about 1.5m by 2017.
 The pilot project in Puducherry has already
completed the first phase of implementation
and early results indicate encouraging results in  Roll out AMI for all three-
2022 phase connections
terms of loss reduction and demand response.
 The results from testing of all the 14 pilot
projects will be further used to implement an
aggressive rollout, which is expected to reach  Full scale nationwide roll out
150m smart meters by 2027. 2027 of AMI-based smart grid

Source: India Smart Grid

Page 8
Market Potential
Smart Cards

Global Smart Cards Market

Global Smart Cards Unit Shipments 2015-2020 (in billion units)

13.29
12.09
11.05
9.34 10.13
8.64 9%
Expected CAGR for
global smart cards
shipments from 2015 to
2020

2015 2016 2017 2018 2019 2020 Source: EMIS

 The global smart cards market is expected to grow from $8.3b in 2015 to reach $12.4b in
2020 at a CAGR of 8%.
 The growth of the market is expected to be driven by an increase in the replacement of
magnetic tape with smart cards. While BFSI is the major revenue contributing sector, other
sectors such as healthcare, telecommunication and retail are also likely to experience growth,
positively affecting the overall market growth.

Share of contactless smart cards in the global smart cards market on the basis of revenue
2015-2020

Others 75% 38% 49% 55% 44% 31%

25% 30% 37% 45% 56% 69%

Contactless

2015 2016 2017 2018 2019 2020

 Share of contactless smart cards is expected to more than double from 2015 to 2020 in the
overall global smart cards market on account of advancements in technology, growing popularity
of contactless smart cards in Asia Pacific along with rising number of banks and payment
platforms offering smart card payment solutions.

Source: EMIS

Page 9
Market Potential
Smart Cards

Smart Cards: Indian Scenario

Smart Cards Unit Shipments 2009-2013 (in million units)

1,354
1,180
1,000
812 25%
561 CAGR for India smart cards
shipments from 2009 to
2013

2009 2010 2011 2012 2013 Source: RNCOS

 The smart cards market in India accounted for INR31b in 2011 and grew 19% to reach INR37b
in 2012.
 Smart Card Information Technology (SCIT), one of the largest manufacturers of smart cards,
produces close to 35 lakh smart cards a month for the RSBY scheme.
 Smart cards-based identity cards, driver's licenses, e-passports, voter IDs, and vehicle
document smart cards are already widely used in India.
 The growth of smart cards market in India is expected to be driven by government’s e-
governance initiatives in several sectors such as government, healthcare, transportation and
defence.
 Various Government initiatives such as Make in India, Digital India, Smart Cities and Skill India
have helped generate the momentum of manufacturing and consumption rise in the Country.
 “Make in India” campaign was launched in 2014 to attract investments in manufacturing
in India. The campaign aims to develop India as a manufacturing hub by eliminating
redundant regulations and shortening bureaucratic processes. The initiative is expected
to support the communication and electronics equipment manufacturing as significant
investments are expected in the next two to three years.

Total Domestic
Opportunity Size Total Manufacturing ($ B)
Manufacturing ($ B)
2012 0.21 0.13
2015 0.52 0.57

Top 4 Components
Chip PETG
Software OS Antenna

Page 10
Market Potential
Smart Cards

Market dynamics of smart cards have time and again posed operational
challenges for stakeholders in the Indian market

1 2 3
Chip suppliers
Chip suppliers System Integrators Active consortiums
System integrators
x Hitachi Active consortiums
x Infineon x AFTEK x CEPS
x MosChip x NIC (National Informatics Centre)
x CMS
x NXP x SCAFI (Smart Card Forum of
x ST Micro x EFFKON India)
Card suppliers
Card suppliers x SMARS (Smart Rupee System)
x Explore Infotech
x Bartronics x Zero Mass
x ERG x iSmart International
ƒ Promote smart card based
x Gemalto
x M -Tech transactions in payment and
x IRIS
x Kedia
identification areas
x Score Infotech
x M -Tech ƒ Refer standards and
x Orga x SISL specifications
x Siepmanns
x Smart Chip
x VCT User segments:
Segments:
Reader suppliers x Wipro ƒ Government Sector
Reader suppliers
x Xident ƒ Telecom
ƒ CMS
ƒ Data Net Systems ƒ Non – Telecom
Ltd.
ƒ Gemalto
ƒ M -Tech

Page 11
Market Potential
Smart Lighting

Global Smart Lighting Market

Global
ob Connected Bulbs Unit Shipments
lo Average Selling Price smart LED bulbs
2015-2020 (in million units) 2015-2020 ($ per unit)

191.8
75.7

106.6 50.2

32.1
50.7 21.6
14.6 11.2
9.6 23.1
3.7

2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
Source: ELCOMA

 The global connected bulbs market is expected to grow from $0.3b in 2015 to reach $2.2b in
2020 at a CAGR of 50%.
 The global connected bulbs shipments are also expected to grow at a strong CAGR of 120%
from 2015 to 2020.
 The smart lighting market is expected to grow on account of the growing penetration of smart
homes which are expected to reach 244m by 2020, rising focus on energy-efficient lighting
solutions along with an expected 80% decline in the average selling price of smart LED bulbs
from 2015 to 2020.

Smart Lighting: Indian Scenario

 The lighting industry in India witnessed a strong growth of 59%

from INR85b in 2010 to reach INR135b in 2013, driven primarily
by the move from GLS lamps to CFLs.
 However, as the percentage usage of lighting in India continues
to be much higher than developed countries at 18% (3-6% higher
than in developed countries) of the total power consumption,
adoption of LEDs and smart connected bulbs are expected to
increase as supported by ongoing government initiatives.
 The LED industry is thus projected to grow dramatically on the
back of the initiatives to acquire ~60% share in the overall
lighting industry by 2020.
 Smart street lighting market in India is expected grow at a CAGR
of 42.2% from 2016 to reach US$1,869m in 2022.

Source: EMIS

Page 12
Growth Drivers

Indian Smart Meters Industry

 Aggregate technical & commercial losses (network losses) are

considerably high in India’s power distribution segment amounting
High
Highnetwork
network around an average of 27-28%.
losses
losses  Smart meters can help reduce network losses by increasing energy
efficiency and improving load management.

 Smart meters can reduce labour costs by eliminating the need to

dispatch staff regularly to record meter consumption data or to
connect or disconnect service.
High labour  They can also detect and record theft of electrical service. In 2014,
costs and thefts Uttar Gujarat Vij Company Limited (UGVCL) and central government
invested INR480m by entering in a 50-50 partnership to set up new
infrastructure, meters, servers and analytic systems for smart grid in
a bid to curb power theft.

 India’s rising power consumption is driving the need for demand

side management systems. Smart meters can enable utilities in
developing systems gathering information on customer peak
Peak load demand and their time of usage.
management  In 2014, UGVCL installed 20,000 smart meters in residential and
industrial units in Naroda to monitor data under a pilot study to
understand the consumer behaviour of electricity usage and
propose a tariff structure based on usage and load.

 The central government’s commitment of US$5.1b towards

Integrated Power Development Scheme for strengthening the sub-
Grid reliability transmission & distribution network and metering in urban and semi-
urban areas is expected to drive the demand for smart meters.

 Smart meters provide utility customers with timely data regarding

Customer consumption and costs enabling them to make informed decisions
engagement and about energy usage.
billing accuracy  Smart meters also eliminate estimated consumption thereby
increasing billing accuracy.

Page 13
Growth Drivers

Indian Smart Cards Industry

 The government plans to deploy several e-governance projects such

as National Population Register Project, Mahatma Gandhi National
Rural Employment Guarantee Act, Rashtriya Swasthya Bima Yojna,
E-governance Driver License, Ration Cards etc. all of which are expected to drive
initiatives the demand for smart cards in the future.
 In 2016, Gujarat government made property cards compulsory for
some properties in urban areas. The new property cards will be in
both the smart card and paper format.

 Modernization of public transport systems is driving the increased

usage for smart cards in the transport industry.
 In July 2016, Bangalore Metropolitan Transport Corporation (BMTC)
Modernization of
launched a travel smart card providing electronic ticketing, thereby
public transport
making travel more commuter friendly.
systems  Gujarat government also launched S-Connect smart card in Surat
which enables traffic violators to pay fine through a cashless
transaction.

 Spending through debit or credit cards has increased significantly

over the last few years. The shift towards the VISA international
Cards from the debit cards in the BFSI is further driving the smart
Increasing use of
cards market in India.
electronic  In 2016, ICICI Bank in association with Ahmedabad Municipal
transactions Corporation (AMC), launched 'Smart City Pre-paid Card' enabling the
residents of the city to pay for facilities such as taxes, bills, entry fee
to common city areas and at retail outlets through the smart card.

Indian Smart Lighting Industry

 In 2016, Cube26 launched ‘IOTA Lite,’ a smart bulb that can be

Introduction of connected with a smartphone to perform several key functions such
affordable smart as turning power on or off, colour adjustments etc. at a price of
lights INR1,899. Syska LED also launched its smart light, ‘Gold Rainbow
LED Bulb,’ at the same price.

Page 14
Growth Drivers

Indian Smart Lighting Industry

 Various wireless networking technologies such as Bluetooth, Wi-Fi,

ZigBee and Z-Wave has led to the advent of next-generation lighting
systems.
Emergence of  Based on the IEEE 802.15.4 standard for personal area networks,
new wireless Zigbee is emerging as a leader in the low-power networking market.
technologies The same wireless networking technology (Zigbee) is also used in
the Philips ‘Hue system’ launched in India in 2015.
 Philips Hue Personal Wireless Lighting Kit is priced at INR16,495.

 Government of India has taken several initiatives to introduce smart

street lighting systems. In 2016, Tiruchirappalli City Corporation
entered in a INR303m PPP to install a Supervisory Control and Data
Acquisition (SCADA) system to remotely operate and monitor street
Government lights in all 65 wards of the city.
initiatives  Other state governments such as Himachal Pradesh, Jammu and
Kashmir along with others have also started implementing smart
street lighting in a bid to reduce their power demand.
 All these initiatives are expected to drive the demand for smart
lighting in India.

 Government of India plans to modernize 98 cities into smart cities in

three phases from 2016 to 2018.
 Major aspects of a smart city includes smart grids and smart urban
Smart Cities lighting along with others. With 6 smart cities planned in Gujarat
(Gandhinagar, Ahmedabad, Surat, Vadodara, Rajkot, Dahod), the
demand for smart lighting is expected to grow substantially in the
state in near future.

Page 15
Gujarat - Competitive
Advantage
Key advantages

Key industries: Gujarat is

Ease of Doing Business:
Gujarat is the only state to
have 100% compliance with
environmental procedures.
The state also fares highly in
terms of allotment of land
and obtaining a construction
permit, obtaining
infrastructure related utilities
and compliance with labour
regulations.
the leader in key industrial Favourable labour policy:
sectors. The Gujarat government has
recently passed the Labour
 Gujarat has attracted
Laws Bill (December 2015),
cumulative FDI equity
to give an impetus to
worth US$13.3b from
industrialization. The key
April 2000 to March 2016.
reform includes a provision
 Gujarat contributed for out-of-court settlement to
around 19.1% to India’s speed up the process labour
total exports of goods in related dispute resolutions.
2014-15

Easy availability of raw materials: Many key industrial

clusters such as foundry & forgings, steel pipes and tubes, steel
re-rolled products and fabricated metal products are located in
close vicinity of industrial hubs such as Sanand industrial
estate.

Gujarat is a power surplus states in the country, as a result it

helps in bringing huge amount of investment from the
industries and is known as preferred investment destination in
the country

Gujarat contributes 7.2% of the Nation’s GDP and shows

leadership in many areas of manufacturing and infrastructure
sectors. Gujarat’s SDP (State Domestic Product) at current
price registered a growth of 11% during the year 2014-15.

In 2013, Gujarat had about 120 engineering colleges with an

intake of 61,000 students per year. 3,100 seats were added in
2013 along with four new engineering colleges. This ensures
adequate pool of skilled workers in the state.

Page 16
Electronics and IT SEZ
in Gujarat
IT/ITeS and electronics regions
 Gujarat Government enacted the Special investment regions (SIR) act in 2009 with the objective
of creating large size investment regions in the state and develop them as global hubs of
economic activity supported by world class infrastructure.
 The state has three SIRs for electronics manufacturing.

 SEZ are special duty free enclaves for the purpose of trade. These zones are self-contained and
integrated, having their own infrastructure and support services. Apart from state-of-the-art
infrastructure and access to a large skilled work force, the SEZ also provides enterprises with
attractive incentives.
 The state has one electronics SEZ at Gandhinagar and 14 IT/ITeS SEZs - six at Ahmedabad,
four at Gandhinagar, three at Vadodara and one at Valsad.

Ahmedabad

Gandhinagar

Viramgam
Halol-Savli
Vadodara
Tourist Navlakhi
Electronics SIR flow*
IT/ITeS SEZ
Electronics and IT/ITeS SEZ Valsad

Promotion of IT/ITeS and electronics industries

 Gujarat Government introduced a new IT policy to provide a proactive and industry-friendly
climate for the IT industry. Incentives and assistance would be provided in allotment of land,
development of IT/ITeS parks, stamp duty concession, electricity duty exemption and capital
assistance on lease rentals.
 The policy also intends to establish the state as a preferred IT destination for micro, small and
medium enterprises (MSMEs) by providing assistance on quality certification, technology
acquisition fund, skill enhancement, patent assistance, simplification of labour laws, subsidy
on bandwidth for connectivity and exemption from zoning regulations.
 Gujarat Government introduced new Electronics policy with the aim of establishing a self-reliant
ESDM industry that caters to needs of domestic and international market. The policy includes
development of human resources, creation of local demand for electronics products, creation of
eco-system for innovation and R&D, and incentives such as VAT/CST subsidy, single window
clearance, uninterrupted power supply, registration and stamp duty concession and interest
subsidy.
 Gujarat Government, recognising the need for additional support for Electronics & IT/ITeS start-
ups and keeping this at the centre of its strategy as recognized by the Government of India,
through ‘Start-up India initiatives and to supplement efforts in that direction has decided to come
up with a focused policy for Start-ups in Electronics & IT/ITeS sector.
Page 17
Project Information

Project location

Key highlights (2016-17)

Area 2,140 sq. km

Population 13,91,753

Literacy rate 85.77%

Tourist
flow*
Focus areas Electrical and electronics, food
processing, textiles, IT –ITES and
ceramics
Gandhinagar
Source: Brief Industrial Potentiality Report of Gandhinagar
District, DCMSME 2016-17

Reasons for considering Gandhinagar as a potential project site

 Gandhinagar is the capital city of Gujarat state and has seven special economic zones and 10
industrial estates along with creative IT Park and Gujarat International Finance Tech City.

 Gandhinagar has been selected as one of the 100 Indian cities to be developed as a smart city
under PM Narendra Modi’s flagship Smart Cities Mission.

 Presence of several electronics and engineering estates such as Gandhinagar Electronics

Estate and Gandhinagar Engineering Estate. Gandhinagar also has several engineering and
electrical machinery small & micro enterprise units.

 Government of India has approved setting up of semi conductor wafer manufacturing facility in
Prantij, near Gandhinagar with an investment of INR 25,250 crore. This would provide a boost
to electronics system design and manufacturing eco system in the region.

 Support infrastructure:
 NH-8 and 8C pass through the district and connect it with other major cities of the state and
India. Western Railways connects the district with major cities in India such as Delhi and
Mumbai via Ahmedabad. Nearest airport, the Sardar Vallabhbhai Patel International Airport, is
located 22 km away in Ahmedabad.

Page 18
Project Information

Infrastructure availability

All 6 regions (Kutch, Saurashtra, North, East, Central and South Gujarat) are
well-connected with each other as well as with other cities in India

Road

 The state is well connected with district roads,

Port/Air
state highways and national highways.
 There are more than 300 state highways with a
 Gujarat exports are increasing total length of 19,761 km.
every year and air/port
 National Highways:NH-8A and State highways
connectivity reduces the
further ease the transportation.
transportation time.
 Kandla Port is located on the Gulf
of Kutch. It is the largest port of
India by volume of cargo handled.
 Gujarat has one international Rail
airport, Sardar Vallabhbhai Patel
international airport, located in
Ahmedabad.
 Gujarat has a well connected rail network.
 There are more than 100 railway stations
connecting several districts.

The State Government ensures robust physical/industrial infrastructure & utility

linkages

 Gujarat boasts of 24 hours 3-phase uninterrupted power supply.

 Gujarat Energy Transmission Corporation Limited (GETCO),
Power Gujarat’s power transmission company operates a total of 1473
substations with 400 KV, 220 KV, 132 KV and 66 KV system
voltage.

 In addition to the existing infrastructure, Gujarat completed a state

Water wide “water supply grid” spread across 1,20,769 km with capability
to serve 75% of the Gujarat’s population.

Page 19
Project Information

Manufacturing value chain - Electronics

Sourcing Manufacture,
Design
R&D, IP ownership and system
services
fabrication assembly

Activities

IP reusability Form factor design Printed circuit Manufacturing/

management Device board fabrication assembly of the final
New IP/ architecture Component
product
architecture Specification sourcing Complex mechanical
development assessment assembly

Distribution
Configuration Marketing
and repair
and testing and sales
services

Configuration of the Packaging Product/IP

marketing
final product Logistics Sales and channel
Systems integration Fulfilment management
Testing After-sales services Branding & campaign
Software loading management

Key stakeholders EMS provider / OEMs*

Suppliers Plant Testing

OEMs/ (Raw material, equipment equipment Distributors
ODMs* Distributors
ODMs component) suppliers suppliers & OEMs

*OEMS: Original equipment manufacture

*ODMS: Original design manufacturer
*EMS: Electronics manufacturing services

Page 20
Project Information

Key smart meters manufacturers – India

Schneider Electric
ICSA
Itron
Ami Tech India
Landis+Gyr
JnJ Powercom System
Siemens
Maven Systems
Cyan

Key smart cards manufacturers – India

Smart Card IT Solutions
Cardpro Solutions
CMS
Siepmann’s Card Systems
M-Tech Innovations
Syskom
Versatile Card Technology
Smart Chip Pvt Ltd

Prominent smart lighting manufacturers – India

Page 21
Project Information

Key considerations for manufacturing smart meters

Even though the Government has proposed low cost smart meters at a cost of US$15-US$25
per meter, it is still on a higher side for wide-scale installations. Further, the wide-scale rollout of
meters, AMI infrastructure, and upgraded IT systems involves significant investment often
requiring government support to drive growth.

Certain technical challenges persists in the manufacturing of smart meters. With multiple
standards for meters and communications protocols available, devices can be incompatible
across vendors. Interoperability testing and pilot projects to make sure the hardware and
software work as planned is needed but can delay eventual rollouts.

Utility consumers have raised health concerns related with radio frequency exposure and privacy
concerns associated with smart meters. Following this, regulators in some countries such as
Netherlands have mandated opt-out programs to placate those concerns.

Key considerations for manufacturing smart cards

There are lack of standards to ensure interoperability among varying smart card programs. To
overcome this, mobile service providers, transport operators, banking systems among others
need to converge their efforts.

Contactless smart card chips use advanced technologies and are complex to manufacture. Their
complexity in terms of technology could hinder the adoption of banking and payment smart cards
thereby affecting the overall growth of the smartcards market.

Lack of funds along with several legal and technical issues have delayed or even cancelled
number of government’s e-governance initiatives such as UID, E-passports, EPFO etc.

Key considerations for manufacturing smart lighting

Even though manufacturers like Cube26 and Syska have introduced low-costs smart lighting
solution, they are still incomparable to LEDs which cost around 1/4th the cost of smart connected
bulb.

Many consumers are still not aware of IoT technology and the numerous advantages it offers.
This remains to be a daunting challenge to the vendors and hinders the overall growth of the
smart lighting market.

All IoT devices including smart lighting require reliable, high-speed Internet connectivity to
function effectively. While developed countries like the US, UK and Japan have state-of-the-art
Internet infrastructure, developing countries like India lacks basic connectivity.

Page 22
Project Financials

Project cost
The total project cost of setting up a smart cards facility at Gandhinagar will be ~INR17.39 crore
for a production capacity 10,00,000 smart cards.

Project components & specifications Cost (INR crores) % of overall cost

Equipment and machinery 1.52 8.7%

(includes cutting machine, printing machine and
computers with software)
Infrastructure development 5.0 28.7%
Land 10.87 62.6%
Site area: 6 acres (24,281 sq. mtrs. @ INR4,480 per
sq. mtrs.)
Total cost 17.39 100%

The estimated project cost has been calculated based on the capital requirement/investment of a
typical smart cards unit. However, it may vary by individual project.

The total project cost of setting up a smart meters facility at Gandhinagar will be ~INR26 crore for
a production capacity 1,50,000 smart meters per month.

Page 23
Approvals/Incentives

Approvals required

• For approvals, the project report should be submitted to respective District Industries Centres
(DICs). DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval.

Incentives from Government of Gujarat

Government of Gujarat introduced Electronic Policy for the state of Gujarat (2016-2021) in order to
establish Gujarat as a globally-recognized hub for the Electronic System Design & Manufacturing
industry with a turnover of US$16 billion by 2021 and an investment of US$6 billion to create
employment opportunities for 500,000 people by 2021.

In addition to the assistance available under any of the schemes of the Government of India,
eligible EMC and ESDM units will be entitled to the following assistance from Government of
Gujarat.

Incentives to the Electronics Manufacturing Clusters (EMCs)

Capital assistance to the greenfield EMCs
Eligible area for greenfield EMCs Admissible Maximum limit
assistance (INR crores)
Area less than 200 acres 25% 25
Area more than 200 acres 25% 100

Stamp duty and registration fee reimbursement

• Developers of greenfield EMCs will be entitled to 100% reimbursement of the stamp duty as
well as registration fee paid by them to the Government of Gujarat, towards lease/sale/transfer
of land for the EMC.

Uninterrupted availability of power and power tariff subsidy to EMCs

• Government will contribute towards the cost of setting up feeder or sub-station (subject to a
ceiling of INR5 crores) in order to provide uninterrupted and good quality power supply to the
EMCs.
• Power tariff subsidy will be given at INR1 per unit in the billed amount for a period of five years
as promotional incentive on reimbursement basis. The subsidy will be applicable only when
electricity will be purchased from the state electricity / power distribution licensee.
• EMCs will be given 100% reimbursement for electricity duty paid for a period of 5 years from the
date of approval of EMC.

Page 24
Approvals/Incentives

Incentives to the ESDM units

Capital subsidy to the eligible ESDM units
Maximum
Admissible
Gross fixed capital investment (GFCI) limit
subsidy
(INR crores)
Investment up to INR10 crore 10% 1
Investment above INR10 crore but up to INR1 crore + 5% incremental
25
INR1000 crore GFCI above INR.10 crores

INR25 crore + 5% incremental

Investment above INR1000 crore 100
GFCI above INR1000 crores

Interest subsidy for a maximum period of five years to the eligible ESDM units
Maximum
Admissible limit per
Borrowings
subsidy per annum annum
(INR crores)
Up to INR10 crore 7% 1
INR1 crore + 2% of borrowings
Above INR10 crore but up to INR1000 crore 5
in excess of INR10 crores

INR5 crore + 1% of borrowings

Above INR1000 crore 10
in excess of INR1000 crores

Reimbursement of stamp duty and registration fee

• Eligible ESDM units will be entitled for reimbursement of 100% of stamp duty and registration
fee paid to the Government of Gujarat for lease/sale/transfer of land for the first transaction.

VAT/CST incentives: (subject to change after the introduction of GST)

• The eligible ESDM units will be provided reimbursement of net tax paid under Section-13 of
Gujarat Value Added Tax Act and 100% of Central Sales Tax (CST) for domestic sales outside
Gujarat, limited to a ceiling of 90% of the GFCI made by the unit, for a period of 10 years.

Other exemptions
• Eligible ESDM units will be given power tariff subsidy at the rate of INR1 per unit in the billed
amount and 100% reimbursement for electricity duty, for a period of five years.
• Eligible units will be given the benefit of reimbursement of the EPF contribution made by them
for their employees for a period of five years subject to overall ceiling of INR1 crore per annum.
• Patent Assistance at the rate of 50%, subject to a ceiling of INR0.2m per patent for domestic
patents and INR0.5m per patent for international patents, for meeting the expenditure for
obtaining patents.

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Approvals/Incentives

Incentives from Government of India

Modified Special Incentive Package Scheme (MSIPS)
• The scheme provides capital subsidy of 20% in SEZ (25% in non-SEZ) for units engaged in
electronics manufacturing. It also provides for reimbursements of non-creditable excise for
capital equipment for the non-SEZ units.
• Reimbursement of central taxes and duties for 10 years in select high-tech units such as fabs,
semiconductor logic and memory chips, LCD fabrication.

Electronic Manufacturing Clusters (EMC)

• The GoI will provide financial assistance of up to 50% of the project cost (subject to a ceiling of
INR500 million for every 100 acres of land) for the development of greenfield EMCs, and 75% of
the project cost (subject to a ceiling of INR500 million) for brownfield EMCs.

Electronics Development Fund (EDF)

• In December 2015, the GoI announced setting up a special EDF worth INR100 billion to help
generate an R&D ecosystem in electronics in India. The fund aims to boost IP generation and
large-scale manufacturing of electronic goods in the country.

Preferential Market Access (PMA)

• In 2013, the GoI introduced PMA to give preference to locally manufactured electronic products
in Government procurement (applicable to all ministries except Defence). The GoI procurement
will not be less than 30% of the procurement value, with specified value addition requirements.

Incentives to the start-ups

Stamp duty and registration fee reimbursement

• Eligible start-ups will be entitled to 100% reimbursement of Stamp Duty and Registration Fee
paid on sale/lease/transfer of land and Office Space for the first transaction.

Interest subsidy
• Eligible start-ups will be provided interest subsidy at the rate of 9% per annum subject to a
ceiling of INR0.2 million per year. Such interest subsidy shall be eligible for a maximum duration
of two years.

Patent assistance
• Eligible start-ups will be provided assistance at the rate of 75% of cost of obtaining patent
subject to ceiling of INR0.2 million per patent for domestic patent and INR0.5 million per patent
for international patent.
• Total quantum of assistance for obtaining such patents shall be limited to INR0.1 million for
international and INR0.4 million for domestic patents per start-up.

Page 26
 Department of Science & Technology, Government of Gujarat
http://www.dst.gujarat.gov.in

Gujarat Informatics Ltd.

http://www.gujaratinformatics.com
Gujarat Electronics and Software Industries Association

http://www.gesia.org/
Gujarat Industrial Development Corporation
www.gidc.gov.in

Office of Industries Commissioner

www.ic.gujarat.gov.in

Industrial Extension Bureau

www.indextb.com

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Department of Science and Technology

Block No.7, 5th Floor,
New Sachivalaya, Gandhinagar
Phone / Fax : 079-23259999
Email: secdst@gujarat.gov.in
https://dst.gujarat.gov.in/index.htm