With the objective to develop Electronics Industry as an important Growth Engine for Andhra Pradesh through effective use of the talent pool, skill enhancement, promotion of innovation & future technologies and creation of excellent infrastructure, Government of AP formulated its policy on Electronic development by offering numerous incentives.
Policy aims to attract investments to the tune of USD 5 Billion in ESDM sector and create an employment of 0.4 Million by 2020
Roadmap formulated to fulfill its vision and objectives are
1. AP government utilized the NPE 2012 of GOI and build upon its strength.
- Promoting Electronics Manufacturing Clusters (EMCs) across the state by providing single-window clearance and through EMC Scheme
- To attract investments upto ₹ 30,000 cr and facilitate the units to get the 25% Cap Ex-subsidy under the M-SIPS scheme of GOI.
- All departments procuring electronics in large quantities should prefer AP-based domestic manufacturers
- Joint Government-Industry committee to market India and attract investments in the country
- Promoting design, manufacturing, assembling and innovation and packaging business by creating fund.
2. Building Infrastructure
- Reserving cluster at Vishakapatnam for Information Technology and Investment Region (ITIR) and converting it as Mega Electronics Hub for the state
- Setting Electronic Hardware Park in Kakinada with basic amenities like internal roads, water, power and other common facilities necessary for the Electronics Units
- Enhancing the logistics on the Visakhapatnam-Chennai Corridor
- Units using renewable source of energy to fulfill atleast 40% of their power requirements will be eligible for additional incentives such as Electricity Duty exemption for 5 years
3. Add-on incentives
Non Fiscal Incentives
- Electronics Industry would be exempted from inspections/certifications and are permitted to file self-certificates
- 3-shift operations with women working in the night, subject to the prescribed precautions in respect of safety and security of employees.
- Declaring Electronics Hardware industry as essential service under AP Essential Services Maintenance Act.
- Consultative Committee on Information Technology Industry (CCITI) to administer the incentives in a speedy, time-bound and transparent manner
- 100% reimbursement of the Stamp Duty, Transfer Duty and Registration Fee paid on sale/ lease deeds on the first transaction and 50% thereof on the second transaction
- 50% to Micro, 40% to small & 25% to medium & 10% to large-scale industry limited to ₹. 50 lakhs Power Subsidy for 5 years and 100% exemption on Electricity duty for new units
- Company , having headquarters at AP, will get reimbursement of patent cost up to a limit of ₹. 5 lakh for domestic patent and ₹. 10 lakh for international patent awarded.
- 50% subsidy on the expenses incurred for quality certification with a limit of 4 lakhs
- 25% subsidy on green production Measures
- The new units started after the date of issue of this Policy will get 100% Tax reimbursement of VAT / CST for a period of 5 years from the date of commencement of production for products manufactured in AP and sold in AP.
- 50% reimbursement/ grant of cost involved in skill up gradation & training the local manpower limited to Rs. 2,000per person.
- 20% Investment Subsidy limited to Rs.20 lakhs for MSME and additional 5% investment subsidy for Women/SC/ST Entrepreneurs.
- 3% Interest Rebate limited to Rs.5 lakhs (0.5 Million) per year for 5 years
- 10% subsidy on new capital equipment for technology up gradation limited to Rs.25 lakhs as one time availment by the eligible company.
- 25% Rebate on land cost limited to Rs.10 lakhs per acre in Industrial Estates, Industrial Parks, SEZ’s, EMCs
4. Promotion of “Electronics AP”
State in partnership with industries will take care of promoting Electronic Products manufactured in AP with initiatives like Mega Electronic Event, Road Show, establishing Electronic Bazars, Enhancing Web-presence, creating point of contact and supporting Associations
5. Innovation & Capacity Building
Keeping in future needs AP government is also initiating on building premier academic institutions, online courses from Universities, Faculty- up gradation programs, awarding Ph. Ds etc.
Source : AP gov website