Business Standard: March 01, 2016
Ahmedabad: Apart from looking to generate about 500,000 new jobs in the electronics sector, the Gujarat government is planning to set up an electronics products manufacturing hub in the state in the next five years, through its newly announced Electronics Policy 2016.
In order to achieve these targets, the Gujarat government has offered several incentives and subsidies under the policy.
"The new policy will boost production of electronics items in Gujarat and the state will be a manufacturing hub of electronics products in India in the next five years," Govind Patel, minister of state for energy and petrochemical, said, adding that the new policy would generate about 500,000 new employment in electronic sector during the period.
The government will provide assistance in two ways to attract investment through the policy. First, the government will provide financial support of 25% of project cost or upto Rs 25 crore to set up 200 acres estate as a cluster. Further, it will provide financial assistance up to Rs 100 crore to projects which have cost of Rs 1,000 crore.
The state government is expecting $6 billion investment and targets to achieve a turnover of $16 billion in the next five years through the policy.
"Through the electronic policy, we are expecting $16 billion turnover with an investment of $ 6 billion by end of the year 2021. The government is also hoping for a significant jump in exports of electronic products from Gujarat which will earn foreign exchange of $ 5 billion during the said period," said Patel.
The state government will also be providing assistance for research and development (R&D), patent and single window clearance facilities in order to attract huge investments in the sector in Gujarat. The government has decided to give 100 per cent exemption in stamp duty and registration for transfer, sale and lease of land to the electronic sector under the new policy.
Meanwhile, the minister of state also said that to boost the industry in the state, investors will get power subsidy, capital subsidy for plant and machineries.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.