Move to boost manufacturing of electronic hardware items in AP
Updated: May 22, 2013 05:20:08pm
Hyderabad, May 22 (KNN) In an effort to boost manufacturing of electronic hardware items, particularly among small units, the state government is keen to exploit market potential, raise industry capabilities and provide world class skills.
“The state government attempts to provide strategic impetus into the electronic hardware and design industry. This is expected to reinvent the business propositions and incentivize the sector so that the industry can penetrate the global markets not only on value and cost factors, but also on customization,” said an official notification from the state government.
The government plans to give impetus to infrastructure by converting existing clusters such as FAB city and Aeronautical Special Economic Zones into centres of excellence and create a joint government-industry committee to market India better and attract investment to the country.
AP government is also planning to give subsidy to the electronic hardware industry on the basis of value addition and volumes.
Further, in order to increase global competitiveness of the electronic hardware industry, moves are afoot to launch a common facilitation centre with full-fledged testing facilities to meet the global quality parameters such as safety testing, microwave testing and environmental testing.
Creating hardware manufacturing clusters in both SEZ and non-SEZ (domestic) areas are also on the cards.
The government is also providing incentives to small units for boosting production of the electronic hardware industry. The micro enterprises will receive recruitment assistance of Rs 2.5 Lakhs for recruitment made up to 50 employees within a period of two years apart from 10 per cent subsidy on new capital equipment for technology upgradation limited to Rs 25 lakh as one time availment by the eligible company.
The limit for small and medium enterprises is Rs 10 Lakhs as recruitment assistance for employing minimum 200 employees within 2 years of commencement of commercial operations and also 10 per cent subsidy on new capital equipment for technology upgradation limited to Rs 25 lakhs as one time availment by the eligible company.
Plans are in the pipeline to give impetus to tier II and III locations like Visakhapatnam, Vijaywada and Tirupati through incentives. For the tier- II locations there is provision of 100 per cent reimbursement of stamp duty, transfer duty and registration fee paid on sale or lease deeds on the first transaction apart from power subsidy of 50 per cent to micro, 40 per cent to small, 25 per cent to medium and 10 per cent to large scale industry limited to Rs 30 lakhs power subsidy on power bills for a period of five years from the date of commencement of commercial operations.
The tier- III locations will also get similar benefits including 100 per cent reimbursement of stamp duty, transfer duty and registration fee paid on sale or lease deeds on the first transaction and 50 per cent power subsidy on power bills for a period of 5 years from the date of commencement of commercial operations.
Currently, the demand for electronic items in the Indian market stands at USD 45 billion and is projected to grow to USD 125 billion by 2014 and USD 400 billion by 2020. Further, exports are expected to increase from the current USD 4 billion to USD 15 billion by 2014 and USD 80 billion by 2020. (KNN)
“The state government attempts to provide strategic impetus into the electronic hardware and design industry. This is expected to reinvent the business propositions and incentivize the sector so that the industry can penetrate the global markets not only on value and cost factors, but also on customization,” said an official notification from the state government.
The government plans to give impetus to infrastructure by converting existing clusters such as FAB city and Aeronautical Special Economic Zones into centres of excellence and create a joint government-industry committee to market India better and attract investment to the country.
AP government is also planning to give subsidy to the electronic hardware industry on the basis of value addition and volumes.
Further, in order to increase global competitiveness of the electronic hardware industry, moves are afoot to launch a common facilitation centre with full-fledged testing facilities to meet the global quality parameters such as safety testing, microwave testing and environmental testing.
Creating hardware manufacturing clusters in both SEZ and non-SEZ (domestic) areas are also on the cards.
The government is also providing incentives to small units for boosting production of the electronic hardware industry. The micro enterprises will receive recruitment assistance of Rs 2.5 Lakhs for recruitment made up to 50 employees within a period of two years apart from 10 per cent subsidy on new capital equipment for technology upgradation limited to Rs 25 lakh as one time availment by the eligible company.
The limit for small and medium enterprises is Rs 10 Lakhs as recruitment assistance for employing minimum 200 employees within 2 years of commencement of commercial operations and also 10 per cent subsidy on new capital equipment for technology upgradation limited to Rs 25 lakhs as one time availment by the eligible company.
Plans are in the pipeline to give impetus to tier II and III locations like Visakhapatnam, Vijaywada and Tirupati through incentives. For the tier- II locations there is provision of 100 per cent reimbursement of stamp duty, transfer duty and registration fee paid on sale or lease deeds on the first transaction apart from power subsidy of 50 per cent to micro, 40 per cent to small, 25 per cent to medium and 10 per cent to large scale industry limited to Rs 30 lakhs power subsidy on power bills for a period of five years from the date of commencement of commercial operations.
The tier- III locations will also get similar benefits including 100 per cent reimbursement of stamp duty, transfer duty and registration fee paid on sale or lease deeds on the first transaction and 50 per cent power subsidy on power bills for a period of 5 years from the date of commencement of commercial operations.
Currently, the demand for electronic items in the Indian market stands at USD 45 billion and is projected to grow to USD 125 billion by 2014 and USD 400 billion by 2020. Further, exports are expected to increase from the current USD 4 billion to USD 15 billion by 2014 and USD 80 billion by 2020. (KNN)
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