Gandhinagar, 4 November 2014

Gujarat Chief Minister today announced Electronics policy for comprehensive development of Electronics sector in Gujarat.

Electronics policy 2014-19:

Motives and targets:

-To set up facilities for setting up Semiconductor Fabrication units in Gujarat.

-To develop Green field and Brown field Electronics Manufacturing Clusters in Gujarat.

-To encourage global leading electronics design companies to come to Gujarat and set up industrial units.

-To take turnover in this sector by 2020 to 16 billion US$.

-To generate 5 lakh employment by 2020.

-To set up Gujarat Electronics Mission for development of this sector.

Incentives:

-Special incentives for semiconductor, fabrication units, mega units, anchor units.

-Upto 25% assistance in Rs. 10 crore limit to greenfield electronics manufacturing cluster.

-100% relief on registration fee and stamp duty in first transaction.

-Upto 90% relief on investment for expansion of existing units and new units that are suitable for VAT incentive.

-100% relief in Central Service Tax(CST).

-7% interest subsidy for five years for micro, small and medium enterprises, and 2% interest subsidy for large units. Such subsidy will be given in limit of Rs. 25 lakh/year in case of micro, small and medium enterprises and in limit of Rs. 50 lakh in case of large units.

-Power tariff subsidy of Re.1 per unit for five years for electronics manufacturing units.

-100% relief in electricity duty for suitable units for five years.

-Employment Provident Fund(EPF) relief in Rs. 5 lakh/year limit for women employees 100% and for others 75%.

-Special benefits to training institutes and trainees in the area of Electronic System Design and Manufacturing(ESDM).

-Incentives matching with state government’s Industrial policy for micro, small and medium enterprises units, for adaptation of new technology, patent, quality certification, research and development institutes and market development.

According to state government spokesperson minister Nitin patel and Saurabh Patel this policy is an initiative in direction to realize Prime Minister Narendra Modi appeal ‘Make in India’.

The policy has been finalized under the guidance of Science and Technology Minister Bhupendrasinh Chudasama.

They said the state government has made G2B(Government to Business) a core part of this policy.

They said India may import more electronics good compared to petroleum by 2020. In this context, special focus has been given to new electronics manufacturing units.

They said a draft of policy has been put on website to attract suggestions.