'Make in India' imprint on Gujarat new Electronics Policy

The Gujarat Government today unveiled a new policy under which the state seeks to emerge as a globally recognised hub for the Electronics System Design & Manufacturing (ESDM) industry by 2020, a move influenced by the Centre's 'Make In India' drive.
Chief Minister Anandi Patel announced the Electronics Policy (2014-2019) under which a slew of incentives has been provided for the new entrants as well as existing players.
Giving details, Finance Minister Saurabh Patel said the policy aims to create employment opportunities for 5 lakh people with an estimated industry turnover of USD 16 billion and investment of USD 6 billion by 2020.

"It is estimated that within next 6 years, India's import of electronics goods will surpass the petroleum products. Keeping that in mind, we have formulated this policy to attract investment in ESDM sector here, for which, we will give several incentives to manufacturers," said Patel, who is also a spokesperson of the state government.
Prime Minister Narendra Modi's "Make in India" drive has been kept in mind while formulating this policy, he said.
"To realise our PM's vision of Make In India, we have formulated this policy to encourage hardware manufacturing, including semi-conductor fabrication, through various incentives and packages. We want to motivate world's leading electronics giants to set up their plants here."

Key policy features include 100 per cent exemption in stamp duty and registration fee on first time land purchase/ lease by ESDM units, 100 per cent refund in Central Service Tax (CST), refund up to 90% on VAT on investment made by new/ existing units, assistance up to 25 per cent of the project cost to greenfield Electronics Manufacturing Clusters (EMCs), among others, according to the policy document.

Other incentives include loan interest subsidy ranging from 2-7 per cent, power tariff subsidy of Re 1 per unit till 5 years and 100 per cent exemption on electricity duty for five years to eligible units.

The Government will set up an empowered 'Single Window Clearance Committee' to grant approvals and clearances for setting up new units. It would be supported by 24X7 help desk.
Along with the policy, the Government also announced setting up of Gujarat Electronics Mission (GEM), which will act as a separate body, said the document.
GEM will undertake tasks such identifying and looking after formation of EMCs, attracting top firms of ESDM sector to invest here and set up incubation centres.