In line with the Prime Minister Narendra Modi’s concept of ‘Make in India’, the Gujarat Government rolled out a wide-ranging Electronics Policy — 2014-2019 on Wednesday. Strategically the State Government came out with the policy ahead of the seventh edition of Vibrant Gujarat Global Investors’ Summit – 2015 to be inaugurated by Modi in January.
The policy designed by the Department of Science & Technology offers plethora of incentives to woo investments in the fast growing Electronics System Design and Manufacturing (ESDM) manufacturing industries in Gujarat.
“We have kept the idea of Government to Business (G2B) in focus while preparing the policy. Emphasis has been given on promotion and branding for Gujarat as leading ESDM destination,” said the State Government spokesman Nitin Patel, adding that the objective of the policy is to establish Gujarat as a globally-recognized hub for the ESDM industry with a turnover of $16 billion by 2020 and investment of $6 billion to create employment opportunities for 5 lakh people in next six years.
The State has offered 90 per cent reimbursement in Value Added Tax (VAT) of the Gross Fixed Capital investment for the new unit as well as expansion of existing units. Besides 100 per cent exemption in stamp duty and registration fee in lease/sale/transfer of land for the first time as well as subsidy in power tariff are some other incentives.
“For inter-state sales, Central Sales Tax (CST) paid into Government treasury would be reimbursed, till GST is introduced. The eligible units under the policy will also be entitled to the reimbursement of the Employers’ PF Contribution deposited by them for the employees for a period of five years, subject to ceiling of Rs5 lakhs per unit per year,” said a senior official instrumental in preparing the policy.
Under the policy Government of Gujarat will set up an Electronics Mission to act as secretariat to ‘Single Window Clearance Committee’ to indentify and facilitate formation of Electronics Manufacturing Clusters (EMC’s). The Mission will also identify the downstream (ancillary) industries as well as to set up Incubation Centres, ESDM University, Centre of Excellence etc.
Patent assistance of 50 per cent subject to a ceiling of Rs. 10 lakh will also be given to eligible units under the policy. In the case of international patent, the assistance would be up to Rs. 25 lakh. Maximum five patents per unit over a period of five years will be eligible.