Around the world electronics Industry is the largest and fastest growing manufacturing industry in the world, with a size of USD 1.75 Trillion. It is expected to be worth USD 2.4 Trillion by 2020. The demand in the Indian market was USD 70 Billion in year 2013-14 and is expected to reach US $ 400 billion by 2020. Domestically the demand supply gap in Indian markets is expected to reach US $ 300 billion by 2020.
To benefit this lucrative opportunity the Government of Andhra Pradesh has come up with ‘Andhra Pradesh Electronics Policy 2014-2020’ to increase in production of smart electronic systems and improve human lives.
The government of Andhra Pradesh wants to establish 20 Electronics Manufacturing Clusters (EMCs). The EMC Scheme intends to create infrastructure especially suited to electronics units by providing a subsidy of 50%.
Andhra Pradesh government wants to target investment of Rs.30,000 Cr. under M-SIPS.
Incentives for Electronics Policy 2014-2020
Registration fee on 1st transaction and 50% thereof. Stamp duty reimbursement of 100%.
Power Subsidy of 50% to micro, 40% to small & 25% to medium & 10% to large-scale industry limited to Rs.50 lakhs for 5 years
Exemption of 100% on electricity duty for 5 years.
Reimbursement Patent Filing Cost Rs.5 lakhs per domestic patent awarded and Rs.10 lakhs per international patent awarded.
50% subsidy on the expenses incurred for quality certification limited to Rs.4 Lakhs.
25% subsidy on cleaner and greener production measures limited to Rs.10 Lakhs.
100% Tax reimbursement of VAT / CST.
50% reimbursement of cost involved in skill upgradation and training limited to Rs.2,000 per person.
Investment Subsidy of 20% limited to Rs.20 lakhs (2 Million) for MSME and additional 5% investment subsidy for women and SC/ST Entrepreneurs.
Capital Subsidy of 10% on new capital equipment for technology upgradation limited to Rs.25 lakhs.
Rebate on Land Cost by 25% limited to Rs.10 Lakhs per acre in Industrial Estates, Industrial Parks, SEZs, EMCs.
Additional Features of the electronic policy
An Annual Mega Electronics Event shall be organized in the State of Andhra Pradesh in partnership with the industry.
The government will conduct Road shows in the United States, Japan, Germany, Korea, Taiwan and China for the promotion of the industry.
Government of Andhra Pradesh will set up “Electronics Bazaars” at Visakhapatnam, Vijayawada and Tirupati.
