)
Uttar Pradesh cabinet today approved Electronics Manufacturing Policy 2014, which is aimed at attracting private investment in the electronics space.
The government has benchmarked a host of fiscal and non-fiscal incentives for setting up of electronics manufacturing units in the state and expansion of existing units.
The Policy aims at establishment of Electronic Manufacturing Clusters (EMC) in the state and capitalise on the upcoming semiconductor fabrication (FAB) unit proposed on Yamuna Expressway with an investment of about Rs 35,000 crore. The plant is being set up under the consortium of JP Associates, IBM and Tower Semiconductor Limited, Israel.
The state cabinet meeting chaired by chief minister Akhilesh Yadav approved the policy.
Key features of the policy include, 15% capital subsidy, 5% interest subsidy for 7 years, 100% exemption on stamp duty, reimbursement of domestic/international filing of patents, 100% tax reimbursement on VAT/CST for 10 years, rebate of 25% on prevailing sector rates on land purchase, industrial promotion subsidy for existing units etc.
The policy shall consider special incentive package for units investing over Rs 200 crore in the sector.
Besides, it stresses establishment of 3 EMC and the state government shall provide subsidy equivalent to 50% of grant provided by the Centre under National Policy on Electronics, 2012 to boost development of infrastructure facilities for these EMC in UP.
With this policy, the Akhilesh Yadav government wants to promote a gamut of industries viz. manufacturing of mobile devices, telecom products, consumer electronics, automotive electronics, industrial electronics, power electronics, IT system and hardware, other electronics such as aerospace, defense etc along with electronic component like transistors, diodes, CRT, resistors, capacitors, PCBs, power devices, switches etc.
The global electronics industry is valued at 1.86 trillion US dollars. The current Indian market demand is around 75.6 billion dollars and expected to touch 400 billion by 2020.Considering the current growth rate of electronics manufacturing in India, a demand supply gap of 300 billion shall be created and the domestic import bill would overtake India's oil import bill by 2020.
In this context, the state is aiming to emerge as a major hub for electronics manufacturing with this policy intervention.
