 "Maharashtra bets big, hopes to make state electronic hub by 2020")
The BJP-led government in Maharashtra is betting big on the electronic system design & manufacturing (ESDM) policy to develop the state as an electronics hub with an annual turnover $12 billion by 2020.
The policy, released today at the Make In India week function, plans to increase the ESDM sector’s exports to $2 billion and create additional employment for one lakh people by 2020.
The policy, released today at the Make In India week function, plans to increase the ESDM sector’s exports to $2 billion and create additional employment for one lakh people by 2020.
Even before the formal release of the ESDP policy, the government has already signed an MoU with Twinstar Display Technologies, promoted by Volcan Investments, to set up a LCD manufacturing unit, known as Panel FAB. Under the agreement, Twinstar Display Technologies will invest $10 billion over five phases.
The government will offer investors a slew of incentives, including industrial promotion subsidy. Additionally, all new and expansion units will be eligible for interest subsidy on term loans availed from banks and public financial institutions for acquisition of fixed assets for the eligible project. For the purpose of this assistance, bank’s prime lending rate or the rate of interest actually charged, minus penal interest if any, whichever is less, will be taken as the effective interest rate. The eligible new ESDM units will be eligible for power tariff subsidy to the tune of Re 1 per unit for a period of 3 years in category A and B areas and 5 years in other parts of state.
Furthermore, new ESDM units will be exempted from paying Electricity Duty for 15 years and from stamp duty during the investment period, for acquiring land and for term loan purposes.
Meanwhile, the government also released the new retail policy which proposes relaxations under the Shops and Establishment Act, 1948, for self-employed establishment or establishments where less than 9 employees are in working condition and for small and medium retail traders. Registration for Value Added Tax will be given online. Retail enterprise shall be allowed to stay open every day of the year to cater to the needs of the working class and other class of customers, provided that the employees are given compulsory weekly offs on a preferential basis. Only perishable goods and items from food and grocery business will be included in the Essential Services Maintenance Act.
Additionally, the government plans to encourage retail clusters across the state.
As far as new port development policy is concerned, the government envisages planning of industrial estates in coastal areas, which can leverage available port connectivity. It also envisages promoting development of industrial clusters, free trade warehousing zones and coastal economic zones in the vicinity of ports. The new policy incorporates provisions for developing support infrastructure such as rail and road connectivity and integration of inland waterways and coastal shipping with the existing and upcoming ports to enhance connectivity.
