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Understanding Jharkhand’s Electronics Systems Design and Manufacturing Policy 2015-2020

Electronics Systems Design and Manufacturing (ESDM) is one of the fastest growing industries in the world estimating at $1.75 trillion. The demand for electronic goods in Indian market is estimated to reach $ 400 billion by the year 2020. Electronic industry is also 0ne of the largest in the country there for a need for such a policy was felt long. Hence, ESDM Policy for the state of Jharkhand for 2015-2020 came with an objective of setting up a globally competitive electronics system design and manufacturing sector in the said state to create a good investor friendly state.


  • To establish the state as a globally recognized hub for ESDM industry having a turnover of $ 20 billion by the year 2020.
  • To create employment opportunities for 5 lakh people and an investment of $8 billion by 2020.
  • To increase the export in ESDM sector to $ I billion by the end of policy term.
  • To promote creation of intellectuals Property (IP) and Research & Development (R&D) in the ESDM sector.

Main highlights:

  • To create more local demand for electronic goods and promoting ESDM companies in the state. Preference will be given to locally manufactured electronic products in the state for any government purchase. Simultaneously, a Free Trade & Warehousing Zone (FTWZ) for raw materials, components, equipment consumables, parts and packaging materials needed for electronics hardware manufacturing will be established.
  • An eco-friendly ambience will be created for innovation, R&D institutions and incubation centers for startups in the ESDM sector to facilitate IP development by Indian industries, R&D institutions with the state providing active support and special funds.
  • The policy also clearly defines ESDM sector, MSME sector, Jharkhand based ESDM units, new entities, existing or old entities, eligible units and gross fixed capital investment.
  • The state government will play a pivotal role in providing incentives to eligible enterprises, entrepreneurs, students and institutions to avail benefits in ESDM sector. Also,
  • ESDM units will be exempted from registration, stamp duties by 100%.
  • These units will get Power Tariff Subsidy at ₹1 per unit for the whole of policy term.
  • Eligible units in ESDM will get 90% reimbursement of net tax paid by them under Jharkhand’s Value Added Tax (VAT) Act. This reimbursement will be done on the Gross Fixed Capital investment made by eligible units within one year (2 years in case of big ESDM projects) from the date of production.
  • Eligible units will get reimbursement of Employers’ PF contribution with a maximum of ₹5 lakh per unit per year.
  • A good Single Window Clearance System will be created to facilitate startups in the state.
  • A special scheme will come into force to Assist Training Institutions and Trainees in the ESDM industry.
  • Eligible units under this policy will get interest subsidies like- MSMEs will get 7% subsidy and larger scale industries will get 2% subsidy for 5 years those having an investment of maximum ₹100 crore. Also, 1% additional interest subsidy will be provided to the youth (less than 35 years of age) in the case of first project and/or to the SC/ST/Women/Differently-abled persons. Maximum amount for an interest subsidy will be ₹25 lakh for MSMEs and ₹50 lakh for large scale enterprises.
  • Technology Acquisition Fund in any form of a group of 10 MSMEs for a specified product will be of 50% grant with a maximum amount of ₹1 crore per technology (included royalty payments for the first 2 years).
  • This policy also paves way for support for R&D institutions, patent assistance for eligible units, market development support for MSMEs including 50% financial assistance for participation in international trade fairs etc.

For more information on this policy visit HERE

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