 "Gujarat govt announces Electronic Policy, eyes $6 bn investments")
The government will also to set up 'Gujarat Electronics Mission' under the new policy. The mission will identify and facilitate formation of Electronics Manufacturing Clusters (EMCs) and set up offices in different countries to attract investments to Gujarat from those countries in Electronics System Design and Manufacturing (ESDM) sector.
In a low key affair state government spokesperson Saurabh Patel on Wednesday announced the policy which aims to give fillip to indigenous manufacturing of electronics products and attract investment in the sector. It plans to create a favourable investor-friendly ecosystem across the entire value chain of electronic system and manufacturing manufacturing. Under the new electronic policy, the state government targets to establish Gujarat as "globally-recognized hub for the ESDM industry.
Further, under the new policy the state government has proposed slew of sops for the new and existing units including exemption on VAT (value added tax) on products manufactured and sold in Gujarat for an initial period of five years, interest subsidy for five years for micro enterprises, small & medium enterprises and large industries having an actual investment up to Rs 100 crore. Maximum amount of interest subsidy per annum shall be Rs 25 lakh for MSMEs and Rs 50 lakh for large units.
The government will provide a special incentive package for mega projects, that employ more that 500 people with fresh investment of over Rs 250 crore, VAT refund equal to 90 per cent of capital investment. It will also give interest subsidy for five years at the rate of 7 per cent for micro enterprises, 5 per cent for small & medium enterprises and 2 per cent for large industries having an actual investment up to Rs 100 crore.
The incentives also include 100 per cent exemption on electricity duty for five years, power tariff subsidy of Re 1 for electronics manufacturing units. The units will also get a employment generation grant with upper limit of Rs 5 lakh per annum against employer provident fund contribution.
Besides exemption from stamp duty and registration fee in case of lease, sale or transfer of land for the first time, new units or existing one carrying out expansion will also get VAT exemption on products manufactured and sold in Gujarat for a period of five years.