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Kolkata| New Delhi: Homegrown contract electronics manufacturing major Dixon Technologies managing director Atul Lall expects to soon get Press Note 3 (PN3) approval for its two Indo-Chinese joint ventures (JVs)-one with Vivo for smartphone manufacturing and the other with HKC Corp. for displays. The Vivo application was filed six months back and the HKC one in August. Lall told ET both the applications are "progressing well."This is in contrast with the 12-24 months the government had been taking for clearance for, or rejection of, any PN3 application, with bilateral relations between New Delhi and Beijing having improved of late. PN3 is a compulsory multi-ministry clearance that companies operating in bordering countries like China need to receive to make investments in India. This includes joint ventures as well.Micromax-owned Bhagwati Products recently filed PN3 JV applications for two projects as part of the component productivity linked incentive (PLI) scheme, director Rajesh Agarwal said. He said PN3 applications by companies with a good track record and a technology transfer commitment are likely to be considered by the government.Improved Ties Cos such as Dixon Tech, Bhagwati Products, Uno Minda optimistic Auto component maker Uno Minda, which earlier had a technical licensing partnership with China's Inovance Automotive, has filed an application under PN3 to convert it to a joint venture-70% held by itself and 30% by its partner. Construction work on the manufacturing facility at Pune has started, with both companies confident of getting approval shortly, a person aware of the development said. Total investment envisaged under the joint venture is ₹423 crore."In the absence of approvals, component makers were resorting to TLAs (technical licensing agreements) with Chinese companies," said a senior auto industry executive on condition of anonymity. "But JVs help better diversify risks, and now, with the relations between the two countries (India and China) improving, more firms are exploring such opportunities."Industry executives said government officials have given indications of faster clearance of PN3 applications by large Indian companies. Those that have applied under the component PLI programme or the Electronics Component Manufacturing Scheme (ECMS) have started making fresh PN3 JV applications, they said.Live EventsThe chief executive of a leading stock market-listed contract manufacturer said the government is more open now to PN3 applications. Those that have applied under ECMS will also get priority approval as the government wants to announce most of the clearances by November-December.The government last month announced that 249 ECMS applications have been submitted for a combined investment of ₹1,15,351 crore-nearly double the initial estimate. It expects this will deepen the value chain of electronics manufacturing in India and increase localisation.Subsequently, the government approved the first batch of seven projects with an investment of over ₹5,500 crore late October. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News ondixon technologiesPress Note 3 approvalDixon TechnologiesVivo smartphone manufacturingelectronics manufacturing in Indiauno minda (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News ondixon technologiesPress Note 3 approvalDixon TechnologiesVivo smartphone manufacturingelectronics manufacturing in Indiauno minda(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
