The Budget provision of Rs10 crore for investors in the form of capital investment, interest grant and skill development in the State Budget for the Electronics and IT sector is set to provide a major boost to the Prime Minister Narendra Modi’s ‘Make in India’ dream. The budget announcement is in consonance with the new IT & Electronics policy of the State government, officials stated.
The Chhattisgarh Government has now included Electronics Manufacturing also under its IT/ITeS Policy. This has been done as per the vision of the Prime Minister on ‘Make in India’ initiative for which the State Government has envisioned ‘Make in Chhattisgarh’ campaign.
Currently, the State has a suitable eco system for Electronics/IT/ITeS Industry with key parameters of Physical and Social infrastructure, Air and Telecom Connectivity, Responsive Electronic,IT/ITeS Policy and CHiPS as single point of contact.( Ease of doing business), they stated.
The Cabinet decision to approve the new Electronics, IT/ITeS Policy would keep the focus on Electronics, IT/ITeS as income and employment generator, officials stated. The policy focus is on IT Developers, IT Development units, Electronic Manufacturing Unit, Data Centre, etc.
Moreover, host of incentives like Interest Subsidy, Capital Subsidy, Subsidy on land Premium, etc will be provided to new units coming up in the State. Interest Subsidy which was 75 per cent of the interest paid, maximum upto Rs60 lakh per year for 7 years, has been upgraded to 75 per cent of the interest paid, maximum upto Rs1.1 crore per year for 8 years.
Capital Investment Subsidy which was 45 per cent, maximum Rs1.4 crore has been revised to 50 per cent, maximum upto Rs1.5 crore. Subsidy on land premium uptill 80 per cent will be provided. Further incentives of 5 per cent on Capital Subsidy. Interest Subsidy and on land premium would be provided to units employing more than 50 per cent workforce of Chhattisgarh domicile, or starting production within year 2015-16.
Keeping the requirements of small and medium enterprise in mind, the policy provides incentives such as 50 per cent subsidy on lease rent, reimbursement of training cost of IT Professionals upto Rs20,000 per employee and subsidy upto 30 per cent on Bandwidth charges among others.
The policy has been framed keeping the requirements of Electronics,IT/ITeS Industry, and is the most competitive policy amongst States of India. It may be recalled that an Electronic Manufacturing Cluster will be established by Chhattisgarh State Industrial Development Corporation ltd (CSIDCl) during the next three years. The CSIDCl had sent a proposal to the Central government regarding development of ‘Electronic Manufacturing Cluster’ over 70 acres of land in Naya Raipur.
The estimated cost of the ‘Electronic Manufacturing Cluster’ is Rs105 crore where the Central Government will contribute Rs50 crore for the project while remaining expenses will be borne by State Government itself. Development of the 'Electronic Manufacturing Cluster' will open gates for investment of Rs500 crore in 50 industries and will create employment opportunities for about 1,000 people. It is a major achievement in the direction of establishing pollution-free industries of Non-core sector in Naya Raipur, officials stated.