The Gujarat Government made an announcement on Sunday, 29 February regarding a subsidy of nearly Rs 100 crore on capital cost for the setting up of an Electronics Manufacturing Cluster (EMC) in Gujarat. There are also other other incentives under the new ‘Electronics Policy 2016’.
The Science and Technology Minister, Govind Patel stated at the time of announcing the policy on the floor of the Legislative Assembly that, “This new policy is aimed at attracting an investment of $6 billion in the next five years, and aims to create five lakh new employment opportunities in Gujarat.” He also said that the policy will stay in effect till 2021.
According to the policy, the government is going to offer a subsidy of Rs 100 crore on the capital cost for the setting up of the EMC. Another subsidy of Rs 5 crore is going to be offered for the setup of high power electric sub-station for such EMCs.
Estimates presented at the House specified that electronics items amounting to $100 billion are being sold in Indian market each year. The minister pointed out that the pace at which the industry is growing will lead the market to touch the $400 billion mark in the coming five years. Offering details regarding several provisions under the policy, Saurabh Patel, the Finance Minister as well as government spokesperson stressed that such EMCs are going to be offered with several rebates in registration fees, land transfer stamp duty, power tariffs along with the payment of electricity duty. Similar to EMCs, the policy also offers Rs 100 crore capital subsidy for the setting up of units engaged in Electronics System Design and Manufacturing. These units are going to be eligible for interest subsidy of up to Rs 10 crore on the loans.
