![]() Friday, Nov 19, 2004 |
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By Our Special Correspondent
NEW DELHI, NOV. 18. LG will set up the first mobile handset manufacturing facility in India, announced the Minister of Communications and IT, Dayanidhi Maran, here today. The factory, being set up in Pune, will begin operations in January next. It will initially manufacture 20 lakh GSM mobile phones in the first year and 40 lakh GSM and CDMA phones in 2006. The factory plans to roll out 80 lakh GSM and CDMA phones in the next year. "The communication to this effect from the Korean Ambassador in India shows that the Government's to encourage local manufacturing by multinationals is bearing fruit,'' observed the Minister. Another company Elcoteq is also planning operations on similar lines. In addition, Ericsson, Lucent and Alcatel, all major telecom equipment manufacturers who had ramped down their operation in the country, have communicated their interest in India. "Nokia too is planning something. I hope the process would catch up,'' said Mr. Maran at the Economic Editors' Conference. Mr. Maran revealed that he had recently discussed the issue of encouraging local manufacturing of computer hardware with the Prime Minister, Manmohan Singh. "The Government realises that it is difficult to promote this sector unless there is semi-conductor manufacturing facility. The Prime Minister is in favour of taking the initiative in this direction. He feels that we should get into semi-conductor manufacturing,'' he said. On the whole, Mr. Maran admitted that the country was lagging behind in the area of indigenous manufacturing of telecom equipment. Even though there was massive requirement for telecom equipment in the coming years, the present manufacturing scenario was not encouraging. "We have identified certain measures for the manufacturing sector,'' he said.
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