By Team Metacorp on 21 Jun 2021
How to get Pollution Board Certificate for Electronics manufacturing units?
Electronic System Design and Manufacturing
In recent years, India has seen a significant increase in demand for electronic items, owing to India's position as the world's second-largest mobile phone manufacturer and the country's high internet penetration rate. Electronics hardware production is a significant priority for the Indian government, as it is one of the key pillars of the Make in India, Digital India, and Start-up India programmes.
The field of Electronics System Design & Manufacturing (ESDM) is critical to the government's goal of generating $1 trillion in economic value from the digital economy by 2025. India has already begun to see activity with increasing production and assembly operations across products such as mobile phones and other consumer electronics, thanks to several government efforts aimed at boosting domestic manufacturing.
Electronic and computer Software Industry
In terms of both output and export, the IT and electronics industry is one of India's fastest-growing businesses. India's brand equity has become a force to be reckoned with because of software development and IT-enabled services (ITeS).
Industry revenue for information technology and business process management (IT-BPM) increased 7% year over year to US$ 191 billion in FY20, and is expected to reach US$ 350 billion by 2025. Furthermore, by 2025, revenue from the digital segment is predicted to account for 38% of overall industry revenue. By 2025, the digital economy is expected to be worth $1 trillion. In FY20, the IT industry's domestic revenue was anticipated to be US$ 44 billion, while export income was anticipated to be US$ 147 billion.
Consumer and industrial electronics, computers, communication and broadcasting equipment, strategic electronics, and electronic components are all part of the electronics industry
Electrical Goods Manufacturing
The Indian electrical industry can be divided into two categories: electrical equipment and electricity generation. The rise of India as a superpower has had a significant impact on the expansion and development of this sector, both in terms of power generation and electrical equipment production.
The Indian electrical equipment segment, which includes heavy electrical and power plant equipment, is a major sector of the country's capital goods industry. The industry is quite diversified, producing both high-tech and low-tech products. In India, demand for electrical equipment is predicted to expand significantly in tandem with the growth of the power sector.
In terms of value, the Indian Electrical Equipment industry provides 8.1 percent of the manufacturing sector and 1.35 percent of India's GDP, directly employing 5 lakh (0.5 million) people and indirectly employing 10 lakh (1 million) people across the whole value chain. This industry includes equipment for generating, transmission, and distribution (T&D). The T&D equipment sector accounts for 85% of the industry, while the generation equipment sector accounts for 15%. The electrical equipment industry's production increased by 9.9% to INR 1,75,000 crore (21.7 billion euros) in FY18, compared to the previous year. Transformers, conductors, metres, cables, and switchgears, among other power distribution and transmission equipment, saw strong growth as the government increased transmission capacity and pushed states to enhance distribution networks. Electrical equipment exports and imports have been gradually increasing.
With increased power generation capacity and growth of transmission and distribution lines, India's electrical energy sector has made remarkable growth over the years. The Indian electrical equipment business is quite diversified, producing both high-tech and low-tech products. Large, small, and medium businesses, as well as foreign players with a direct presence or through collaboration with domestic players, make up the industry.
What are the Electrical and Electronic Goods?
Boilers, turbine and generators
Mobile Phones, Televisions, Refrigerators, Set-top Boxes, Digital Cameras, Air Conditioners, Washing Machines etc.
2. Industrial goods
Energy meters, Transformers, Cables, Transmission lines, Switchgears, Capacitors etc.
Process Control Equipment (PCE), Automation and Analytical Instruments (A&AI), Power Electronics Equipment (PEE), Test & Measuring Equipment (T&ME) etc.
Electro Mechanical Components -include Printer Circuit Boards, Connectors, etc.
Active Components- include Integrated Circuits’ Diodes, Transistors, Picture Tubes, etc.
Passive Components -consist of Wound Components, Capacitors, Resistors, etc. Associated Components consist of Optical Discs, Magnets, RF Tuners, etc.
4. Communication & Broadcasting (C&B) Electronics
IP PBX, BTS (GSM, CDMA), WiMax (BTS,CPE), PON/GPON ONT/OLT and DWDM,Fixed-line and mobile telecommunication equipment, modems, routers, switches.
notebooks Desktops, storage flash memory cards, tablets, monitors, servers, , USB drives and printers/MFDs
6. Strategic Electronics
Military Communication Systems, Electronic Warfare Systems, Weapon Systems Satellite Based Communication, Navigation and Surveillance Systems, Navigational Aids Radars and Sonars, Network Centric Systems, Underwater Electronic Systems, Infra-Red (IR) Based Detection and Ranging System, Disaster Management System, Internal Security System, etc.
7. Automotive Electronics
Electric vehicles and connected mobility
What are the important points to understand before starting manufacturing plant for Electrical and electronic goods?
- Purpose- You must always be aware of your primary motivation for starting an electrical and electronic goods manufacturing company, since if you don't, you won't be able to think strategically about how to proceed with a proper plan for success. What does this business mean to you? What do you expect to gain from it?? Which way would you like to go with it? It is not the correct moment to consider about starting it unless you have the answers to these questions.
- Commerce- Are you in good financial standing? This is the first question you should ask yourself before opening an electrical and electronic goods manufacturing business. This sector is vast and has a lot of growth potential, but having a solid financial foundation is key. The resources will be costly; if you plan on taking out loans, you will also require adequate collateral security. When it comes to investing your hard-earned money and savings in this endeavour and being fully aware of the potential returns, you must think, prepare, and act accordingly.
- Research and knowledge of Business- The electrical and electronic sector is large and contains a wide range of items, each with its own market potential. Before launching a production unit, it is necessary to understand the present market scenario and what product quality will survive in the market.
- Land- Land is a crucial factor of any industry. In India, as in other countries, the government permits the establishment of factories only in industrial areas subject to certain conditions or on agricultural land after a change of land use (CLU). Many industrial areas do not allow enterprises that fall under the RED categories or that discharge hazardous waste, making land a difficult element for units to deal with. So, perform some land study or get professional help from a company like Metacorp.
What are the licenses and pollution certifications required to set-up a manufacturing plant for Electrical and Electronic goods?
- Status of legal entity- You must establish a legal entity for your firm, which is a need for launching any form of business in India. In India, we have five types of options for setting up a plant for manufacturing of Electrical and Electronic goods as a legal entity
- Proprietorship- It is a type of legal entity that is operated by an individual, with the assets and liabilities of the firm belonging to the same persons who are the firm's owner. There is no distinction between a company and its owner.
- Partnership- It is a type of legal entity that is operated by two or more persons, with the assets and liabilities of the firm belonging to the same persons who are the firm's owner.
- Private limited company- A Private Limited Company is formed when two or more persons want to share their profit and liabilities and have registered their business organisation under the Companies Act 2013.
- Public limited company- When seven or more than seven persons are interested to share their profit and liability and they register their entity under Companies Act 2013 which is not a private company. As per sec 2(71) of companies act 2013, A ‘Public Company’ means a company which has minimum paid-up share capital as may be prescribed and which is not a private company.
- One person Company- According to section 2(62) of the Companies Act 2013, a "One Person Company" is defined as a company with only one member. It is essentially a private firm with some distinguishing characteristics.
- Limited Liability Partnership- Limited Liability Partnership (LLP) is a corporate business form that allows people with managerial and entrepreneurial talents to join and operate in a functional, innovative, and methodical way, giving limited liability benefits while allowing partners to organise their internal structure as a partnership.
- DIC/SSI/MSME/Udyog Aadhar Registration
Small scale industries and ancillary units (i.e., businesses with a plant and machinery investment of less than Rs. 10 million) shall register with the Director of Industries of the concerned state government.
- There is no statutory basis for the registration scheme. Units are typically registered in order to receive benefits, incentives, or support from the center or state governments. The following are generally included in the Centre's incentive programme:
- Credit prescription (priority sector lending), interest rate differentials, and so on.
- Excise Exemption Scheme - Direct Tax Laws Exemption.
- Statutory support, such as the Interest on Delayed Payments Act and reservation.
- State Pollution Board certification/NOC/Authorization-
Before establishing a facility, every business firm must obtain prior authorization from the Concerned State Pollution Control Board. Every state has a pollution control department tasked with monitoring any pollution that occurs within its borders.Industries are classified in four categories by Central Pollution Control Board under the supervision of Ministry of Environment, Forest and Climate Change, in most of states, Manufacturing of Electrical And Electronics Goods fall under RED,ORANGE GREEN category as the case maybe. The following permission need to be obtained by business entity.
- Consent to establish (CTE)- Prior to the construction of a plant or the installation of a machine in previously constructed premises, the occupant must apply for permission to establish.
- Consent to Operate (CTO) – Occupier has to apply for consent to operate before operation of plant. Before consent to operate, concerned officer come and visit the plant to make sure installation of machine has been completed and plant ready for operate.
- Hazardous Waste Authorization- Occupier need to made an application for Hazardous waste Authorization if any hazardous activity is there
- E-waste Authorization- Manufacturer need to get permission from Concerned Pollution control department for generating e-waste during manufacturing.
What are the documents are required to obtain Pollution Certificate
- Consent to Establish/Consent to Operate
- Pan card and UID of Authorized Person
- Pan card of unit (Except Proprietorship)
- Property Paper/Rent Agreement with Rent permission
- Layout Plan
- Project Report
- Capacity Certificate
- CLU( in case of Agriculture land)
- Authorization Latter (Except Proprietorship)
- Electricity bill/ water bill (If any)
- CGWA Permission (For washing Activity)
- ETP Details (For washing Activity)
- MOA and AOA/Partnership deed
What is the procedure to obtain State Pollution Board certificate/NOC /Authorization
- Create user id and password
- File an application through user id and password
- Payment of govt fee
- Inspection will conduct by concerned officer
- ATR preparation by department
- File sent for meeting or Regional officer or Head office as the case may be
- Approved in meeting or by Regional officer or Head office as the case may be
- Download certificate from Pollution control’s website
- Extended Producer Responsibility Authorization (EPR)- Every business entity, which is producing goods comes under Schedule I of E-waste Management Rules then producer is liable to take Extended Producer Responsibility Authorization from Central Pollution Control Board(CPCB). For more research and information read the E-Waste Management Rules 2016
- Trademark- A identifiable insignia, phrase, word, or symbol that designates a certain product and legally distinguishes it from all other items of its sort is referred to as a trademark. A trademark is a symbol that uniquely identifies a product as belonging to a certain firm and acknowledges that business's ownership of the brand. Trademarks are a sort of intellectual property that can either be registered or not.
- Others- Some other licenses are also required which are as follow
- Factory License
- Trade License
- BIS (BUREAU OF INDIAN STANDARDS)
- WPC (Wireless planning and Coordination)
- BEE (BUREAU OF ENERGY EFFICIENCY) star Labeling and certification
- Labour License
For more details, please visit metacorp