Ahmedabad, Mar 3 (KNN) The Gujarat MSMEs have welcomed the Electronic Policy announced the state government on Monday and said the policy would definitely support the existing units and bring in new investments in the state.

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.

“It’s a good policy and will push growth in the state,” said Anupam Bhatnagar, General Secretary, Gujarat Electronics & Software Industries Association.

He said that apart from supporting the existing companies, the policy will also encourage new companies to be set up 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. (KNN Bureau)