Gujarat Govt announces new electronic policy; spl incentives for EMCs and ESDM units

Ahmedabad, Mar 1 (KNN) Gujarat Government on Monday announced a new Electronics Policy-2016 under which special incentives are declared for setting up of Electronic Manufacturing Clusters (EMC) and Electronic System Design & Manufacturing (ESDM) units in the state.

In the new electronics policy, the investment of Rs. 40,000 crore has been targeted by the year 2021 which is expected to achieve the turnover of Rs. 1,10,000 crore and will also generate employment opportunity for about 5 lakh people.

There will be a capital subsidy of Rs. 100 crore for Electronic Manufacturing Cluster (EMC) and compensation up to Rs. 5 crore for setting up of high power sub-station. Moreover, incentives like exemption in registration fees and land transactions, power tariff subsidy, exemption on electricity duty will also be given to such clusters.

Similarly, for Electronic System Design & Manufacturing (ESDM) units, provision of Rs. 100 crore has been made for capital subsidy, while provision of Rs. 10 crore for interest subsidy as well as assistance up to Rs. 1 crore for contribution in Employment Provident Fund (EPF) has also been made in this policy. The new units in this field will also attract incentives in VAT, registration fee, stamp duty, power tariff and electricity duty.

The policy also gives focus on Research & Development (R&D) institutions. R&D units and ESDM units will be given assistance for participating in International Trade Fairs. Industrial internship will also be encouraged by paying stipend to atleast 1 employee of such beneficiary units.

For proper policy implementation and to create an ideal industrial atmosphere in the state, the Information & Technology Department will be appointed to work as a nodal agency. To move up the policy of ‘Ease of Doing Business’, the state government will also declare corresponding policy.

Some of the key incentives announced in the policy for Electronics Clusters include - Assistance up to 25% with upper limit of Rs. 25 crore to cluster developed in the estate with an area up to 200 acres; Assistance up to 25% with upper limit of Rs. 100 crore to cluster developed in the estate with an area more than 200 acres; 100% exemption will be given in stamp duty and registration fee in lease/sale/transfer of land; For setting up required power sub-station, assistance up to Rs. 5 crore will be provided; and Power Tariff Subsidy will be given at Rs.1 per unity and 100% Electricity Duty for a period of 5 years will be reimbursed.

Meanwhile, the incentives for Electronic System Design & Manufacturing Unit include - Capital Subsidy will be given at the rate of 10% with upper limit of Rs. 1 crore for ESDM units with capital investment in immovable property like plant, machinery, building is up to Rs. 10 crore; Capital Subsidy will be given at the rate of 5% with upper limit of Rs. 25 crore for ESDM units with capital investment in immovable property like plant, machinery, building is more than Rs. 10 crore and up to Rs. 1000 crore; Capital Subsidy will be given at the rate of 5% with upper limit of Rs. 25 crore for ESDM units with capital investment in immovable property like plant, machinery, building is more than Rs. 10 crore and up to Rs. 1000 crore and more.

Other incentives include - Incentive up to 90% for 10 years will be given on the amount paid for VAT/CST/GST; Assistance for registering patents, support to R&D institutes and single window clearance system to attract investment in the state; Employment generation for 5 lakh people by the year 2021 is targeted through this policy

With an investment of USD 6 billion, the turnover of USD 16 billion and foreign exchange by the export of USD 5 billion is expected in the next 5 years. (KNN Bureau)