To promote Haryana as an electronics manufacturing hub, the Haryana Government has sent a proposal to the Centre to notify the Faridabad-Ballabgarh-Palwal area as a ‘Brownfield Electronics Manufacturing Cluster’ in the State. An official spokesman on Friday said that once the proposal is accepted and the area is notified, it would mean a lot for development of software industry and boosting employment in the State. The scheme provides for subsidy of 20 per cent for investment in capital expenditure in Special Economic Zones and 25 per cent in non-SEZs.
Haryana Chief Minister Manohar lal had approved this proposal and directed that the Department concerned should identify more clusters in the state that can be eligible to be notified under the scheme. It also provides for reimbursement of CVD or excise on capital equipment for the non-SEZ units. For high technology and high capital investment units like fabs, reimbursement of central taxes and duties is also provided.
The incentives are available for investments made in a project within a period of 10 years from the date of approval. These are available for 29 different categories of ESDM products. These include telecom, IT hardware, consumer electronics, medical electronics, automotive electronics, solar photovoltaic, lEDs, strategic electronics, avionics, industrial electronics, nano-electronics, semiconductor chips and chip components, other electronics components and EMS. Besides, these are applicable to the units across the value chain starting from raw materials, including assembly, testing, packaging and accessories of these products.
The spokesman said that the scheme would be open for three years from the date of notification. The projects with incentives of Rs10,000 crore have the potential to create employment for nearly 0.5 million persons. The scheme is expected to create an indigenous manufacturing eco-system for electronics in the country. It will also foster the manufacturing of indigenously designed and manufactured chips creating a more cyber-secure ecosystem in the country.
It will enable India to tap the great economic potential this sector has. The increased development and manufacturing in the sector will also lead to greater economic growth through more manufacturing, and, consequently greater employment in this sector, added the spokesman.