The Department of Information Technology plans to set up a Rs 5,000-crore Electronics Development Fund focussing on development of technology that is of strategic interest for the country.

"The complete contribution of Rs 5,000 crore to this fund will be made by government. The objective of this fund is to develop an eco-system to boost manufacturing in the country," said R Chandrashekhar, Secretary, Department of Telecom, who also holds additional charge of Secretary, DIT.

"It will be only used for development of technology which are of strategic interest for the country," he said.

Chandrashekhar mentioned that government has identified development of telecom equipment, language technology, development of Indian Intellectual Property Rights in the field of electronics and development of Indian Microprocessor as focus areas.

He said that the guidelines for the use of fund are yet to be worked out. He mentioned that government will look for participation from the industry as well and works out ways of using this fund with companies and entrepreneurs in India.

"We will use resources from institutions like IITs and also look for contribution of human resource from industry as well to collectively take the objective forward," he said.

Chandrashekhar also mentioned that DIT is working on two special incentive package for boosting manufacturing in the country.

"There two SIPS that are being worked out. One SIP will focus on semiconductor fabrication units and the other will include packages for other electronic products be it television, mobile phones or other consumer items," he said.

The DIT secretary mentioned that the ministry has already proposed setting up a high power committee under Sam Pitroda, advisor to the Prime Minister, to talk with industry players for setting up semiconductor fabrication plants.

"Our ministry has finalised everything for the high powered committee in the cabinet note. It only needs approval from cabinet," Chandrashekhar said.

Semiconductor (wafer) fabrication plant manufacture chips that are most important part of an electronic product which in a way govern the function of a device.

India till date has not been able to set up or attract a fabrication unit in the country but is hopeful of getting such unit in near future.