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Mr Sanyo John works with Mahindra Lifespaces,his views

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Bridge to Faridabad from Yamuna Expressway cleared

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Construction update of 16/9/16

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Visit by Mr & Ms Kamlesh Sinha from Patiala ,working with State Bank of Patiala

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Patanjali to invest Rs1650 Cr in 400 acre complex in neighbourhood.

11-9-16-patanjali-news

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Bus service by NMRC starts 1.10.16

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LeEco invests $7 million on manufacturing plant in India,Greater Noida

LeEco invests $7 million on manufacturing plant in India

Aparna Desikan

Within eight months of its launch in India, Chinese technology company LeEco sets up manufacturing facility at Greater Noida. Partnering with Compal Technologies, the company has set up the plant with an investment of $7 million dollars.

| TNN | Aug 31, 2016, 06.11 AM IST

CHENNAI: Within eight months of its launch in India, Chinese technology company LeEco sets up manufacturing facility at Greater Noida. Partnering with Compal Technologies, the company has set up the plant with an investment of $7 million dollars. The plant was inaugurated on Tuesday by Minister of Information Technology Ravishankar Prasad.

“This is our contribution to the Make in India initiative. The facility has a capacity to manufacture 60,000 phones and is planning to expand the assembly lines to a capacity of 2 lakh phones by December,” said Atul Jain, COO, smart electronics business, LeEco. At present the facility would manufacture Le2 phones, following which the company will look to including other products.

Employing 200 personnel in the plant, the company looks to hire more staff in line with the increase in capacity. “The plant will currently manufacture for India, but we look to making it an export hub. Phones, which are currently imported, would be manufactured in the plant,” said Jain.

The company has sold over 2 lakh phones in the last two months and 10 lakh phones (1 million) – overall in India. LeEco also sells TVs, headphones, speaker, VR headsets, chargers and other mobile accessories.

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Noida is now India’s mobile production hub

 If you unclip the back of your new Samsung smartphone, or one from a homegrown brand like Karbonn, Lava or Intex, you might find a `Made in India’ sticker there. And chances are that the device has been assembled in the Noida-Greater Noida region at Delhi’s doorstep.Ever since the Centre introduced a 10.5% duty differential between imported devices and those made locally in last year’s Budget, the region has become India’s biggest smartphone hub, with a capacity to make more than 140 million devices per annum -40% more than a year’s demand.

Not that Qualcomm and MediaTek are stamping out processors here -all the critical components still come from China and Taiwan -but it is a significant start for the industry . Sources said the local industry does about 5-8% of value addition at present, and this can be scaled up to around 35% within five years.

The flurry of investments to the region was perhaps prompted by the presence of Korean giants Samsung and LG. Samsung, which started local manufacturing a decade ago and reportedly has the highest installed capacity of 40 million devices per annum -the company did not confirm it -seeded a significant number of smartphone com ponent suppliers in the area.The company produces mobile phones from completelyknocked-down (CKD) kits.

“All our mobile phones, from feature phones to the Galaxy S7 that we sell in India, are manufactured at our Noida factory , and we will continue to explore future investment opportunities,“ a spokesperson for Samsung said.

Now Indian brands like Lava, Intex and Karbonn, besides Taiwanese contract manufacturer Wistron, have also set up shop. In partnership with home-grown telecom retailer and manufacturer Optiemus, Wistron makes phones for LG, China’s OnePlus and Oppo, and Taiwan’s HTC. Another Chinese vendor, Water World Technology , has partnered local company UTL Group, which is one of the backers of Karbonn Mobiles. Each factory creates 3,000-4,000 direct jobs, employing mostly high-school or ITI graduates.

Proximity to Delhi, where most home-grown phone brands are headquartered, has certainly helped the region bloom despite UP’s iffy image as a business destination. “The promoters wanted operations in a region that remains within their reach and under their control,“ said Narendra Bansal, chairman of Intex Technologies, a major Indian phone brand.

“Noida’s proximity to the capital, its growing infrastructure, and development as a large residential hub close to the capital’s business districts also helped,“ the Samsung spokesperson said.

Intex, which has three factories in Noida with an annual installed capacity of 30 million phones (feature and smart), is now setting up a 20-acre base at Kasna in Greater Noida for a larger integrated facility that will also house key suppliers. “There are huge advantages here in terms of the cost and availability of labour. The power supply is largely uninterrupted and the productivity levels are even better than China’s in many cases,“ said Sunil Vachani of Dixon Technologies whose company makes Karbonn and Panasonic devices in a joint venture. But is it easy to do business in UP? “The benefits may be less than in states like Andhra Pradesh, which offer incentives. However, operating in the south is difficult for a north-Indian brand. Moreover, the UP administration is supportive,“ Vachani added.

Lava managing director Hari Om Rai said availability of land in the Noida-Greater Noida industrial area has also been an important enabler. “There may be a few instances of difficulty in getting approvals, but the broader policies are clear,“ said Rai whose company has an annual installed capacity of nearly 36 million devices. “We have not faced interventions by the government.“

Now, even Chinese vendors and suppliers are gravitating to the region, drawn by its large production capacities. The manufacturing processes are still low-end, with a lot of assembly done manually , but efforts to increase local engagement and add sophisticated processes, such as the assembly of printed circuit boards (PCB), are on.

Analysts said PCB assembly will enhance the quality of local manufacturing. Also, there are efforts to develop R&D and design capabilities within the country , instead of relying on partners in China and Taiwan. “It will take at least 5-7 years to develop a high valueadd manufacturing set-up here,“ said Pardeep Jain, MD of Karbonn Mobiles.

IT minister Ravi Shankar Prasad said more initiatives are planned to boost the manufacturing of electronics.“Electronics manufacturing is a focus of the government as part of the `Make in India’ initiative. The current investments have resulted in as many as 40,000 direct jobs and over 1.2 lakh indirect employment. We estimate that mobile phone production will reach a level of around 500 million devices by 2019­20.“

For now, uncertainty over the fate of the 10.5% duty differential in a GST regime is worrying investors, even though they have welcomed the simpler tax structure a GST will bring. “It will be near-suicidal to make fresh investments until GST is described,“ Jain said. “We do not want to gamble in such an uncertain scenario,“ Vachani added.

Minister Prasad said concerns around GST would be addressed.“Please remember, GST is for India.Surely , in the whole fiscal architecture we will ensure that Indian manufacturing interests are saved.“

Asked if the duty differential between local manufacturing and imports will be maintained, he said, “Obviously , why not… the interest of India’s manufacturers will be kept in mind.“

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DMIC township work reviewed, 12% complete

Greater Noida: The Rs 600-crore Integrated Industrial Township in Greater Noida under the Delhi-Mumbai Industrial Corridor (DMIC), for which land is being developed by Shapoorji Pallonji, is on track with IIT-Delhi’s approval of its infrastructural design.

The secretary, department of industrial policy and promotion under the Union ministry of commerce, Ramesh Abhishek, and Alkesh Kumar Sharma, chief executive officer and managing director, DMIC, on Saturday conducted a site visit of the project, which is under construction. Satisfied with the physical progress of the township, officials told TOI that infrastructure design services of the project have been vetted by IIT-Delhi.

According to officials of the Greater Noida Industrial Development Authority (GNIDA), officials conducted a detailed inspection of the site besides reviewing the design phase of the project, which is now complete. “Since the design phase, which is critical, is mostly on paper, so far the project has completed only about 12%,” said Deepak Agarwal, CEO, GNIDA. “However, work has started on the ground and now the project will move ahead at a fast pace. By October-November we plan to open sale of plots in the area,” he told TOI.
Officials said IIT-Delhi has approved the design for infrastructure services including roads, sewerage, drainage, water supply, etc. “Design for the bridge, solid waste management is likely to be approved next week,” said K K Singh, officer on special duty (OSD – projects), GNIDA. “Currently, earth filling work is being carried out. We have to fill about 8 lakh cubic metres of earth. Our target is to put roads in place in the next four months so that future investors can approach their plots,” he said.

 

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Good for the new areaVandana Keelor

Sprawling across nearly 335 hectares of land, the township will be located in the Dadri-Noida-Ghaziabad investment region of the corridor
Officials said that the township would be located in Ecotech 11A in Greater Noida. Its boundaries include Ghodi Bacheda village, Maicha village, Howrah railway line and the Eastern Peripheral Expressway.

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Greater Noida heliport set to take off, NOC likely next week

GREATER NOIDA: The ambitious heliport project of Greater Noida, hanging fire for several years, is raring for the takeoff. A team of aviation experts from Directorate General of Civil Aviation (DGCA), along with RITES, the project’s technical consultant, and officials of GNIDA conducted a site inspection of the proposed project on Thursday. While the team seemed satisfied with the site for the heliport, a formal approval and NOC for the project could come within a week.

GNIDA officials said, a formal application seeking clearance for the proposed project was submitted to DGCA in June this year. “Once we have the NOC from DGCA, we will invite a Request for Proposal from technically qualified consultants to put the project in place,” said Deepak Agarwal, CEO, GNIDA. “All other modalities and logistics have been worked out and are in place for the project. This is a step forward for the project, which is on the UP CM’s list of priorities,” he said.
Agarwal further said that GNIDA was also proceeding with getting an Environment Impact Assessment done for the project. “We are also addressing a public hearing by Pollution Control Board in setting up the project so that we can get the board’s clearance, too,” he explained.
The Rs 50-crore heliport is proposed to be constructed on a 22-acre open area in Safipur village, located along the Noida-Greater Noida expressway near the Gautam Budh University. A detailed project report for the heliport has already been approved, along with an NOC from the UP irrigation department. An additional 15-acre land has also been reserved for future expansion of the aviation project,” said Agarwal.

 

“The project will be developed on PPP model. Once the work on the project commences, it will be in place two years after construction starts,” he explained.