Thursday, September 11, 2014: The Andhra Pradesh Government has unveiled a new Electronics Policy 2014-2020 on Tuesday, which gives an impetus to electronics manufacturing. This policy aims at attracting $5 billion investment along with employment creation of around 0.4 million by 2020.
The policy replaces AP Electronics Hardware Policy 2012-17 and it aims to develop 20 electronics manufacturing clusters (EMCs) across the State in six years. As on March’14 the Indian electronics market pegged at $70 billion and is supposed to touch $400 billion by 2020. But the low domestic manufacturing base may affect the demand-supply structure and this gap is likely to reach $300 billion by 2020. This policy by AP government focuses on semiconductors, mobile, LED, smart meters, FPD TVs, tablets, base stations, smartcards and sensors. The electronics hardware industry has been notified as an essential service under AP Essential Services Maintenance Act.
The policy, in order to attract more companies, also offers non-fiscal incentives under various heads like the Factories Act 1948 and the AP Shops & Establishments Act 1988 and fiscal incentives like registration & stamp duty, power subsidies, exemption of electricity duty, VAT/ CST reimbursement, investment subsidies and rebate on land cost. Some additional incentives are also integrated into this policy for some mega projects which have a minimum investment of minimum Rs 2,500 million or those who have been creating jobs for more than 2,000 people in five years.
The policy has one more provision that in case the required approvals are not granted within four weeks of receiving an application, the approval will be understood to be granted. The policy also aims at skill creation with producing 250 PhDs in electronics by 2018. A high-level, empowered ‘single window clearance unit’ will also be created to be supported by the state-of-the-art centralised round-the-clock help desk. The policy also aims at reserving two clusters/areas which are planned as electronics hubs in the upcoming ITIR in Visakhapatnam.
If any company is using renewable source of energy with a minimum 40 per cent, then it will be eligible for additional incentives like electricity duty exemption for five years and sales tax exemption for two more years. The government has also proposed an annual mega electronics event to showcase electronics products and also setting up ‘Electronics Bazaars’ at Visakhapatnam, Vijayawada and Tirupati, which would function as G2B/B2B/B2G/B2C platforms to market electronic products.
