AP govt unveils electronic policy; Plans Rs.30,000 cr investment

• Approvals to be accorded in four weeks
• Visakhapatnam to be mega electronic hub
• No statutory power cuts; 50% subsidy
• Electronics hardware declared essential services
• Labour Act provisions done away with

Hyderabad: The Andhra Pradesh Electronic Policy 2014-2020 aims at attracting investments to the tune of Rs 30,000 crore in electronic systems design and manufacturing (ESDM) sector over the next five years.

The policy unveiled on Tuesday offers enormous and attractive incentives and subsidies to entrepreneurs. It has ended the license raj by dumping most of the acts of the labour department, enabling the entrepreneurs to file self certificates.

Adopting the National Electronic Policy of 2012, the AP government has decided to provide 50 per cent subsidy to the electronic manufacturing clusters. The government will promote 20 clusters across the State by facilitating preparation of project proposals by entrepreneurs and providing single window clearances.

These clusters would be given preferential market access. A joint government-industry committee would be set up to market India and attract investments into the country. The state also envisages developing an IT and Investment Region (ITIR) in Visakhapatnam. The government would reserve two clusters solely for electronic hubs and the city would be developed as a mega electronics hub in the State. To enhance logistics for faster movement of goods produced by ESDM sector, Visakhapatnam-Chennai corridor would be developed. The policy said the government would encourage use of renewable energy. Those using 40 per cent of their power requirement would be entitled to waiver of power duty for 5 years.

In the critical infrastructure area, airports of Visakhapatnam and Tirupati would be further developed apart from the proposed new airports. The government would ensure 24x7 power supply and as an interim measure, electronics industry would be exempted from statutory power cuts.

Among the incentives, the units would be exempted from inspections and certifications under various rules framed and administered by labour department. The units can give self declaration with regard to Factories Act of 1948, contract labour act of 1970, payment of wages and minimum wages.

Similarly, the electronics hardware industry has been declared as essential services under AP Essential Services Maintenance Act.

The fiscal incentives include reimbursement of registration and stamp duty, power subsidy, exemption of electricity duty, waiver of patent filing cost, 50 per cent subsidy quality certification, 100 per cent VAT & CST reimbursement, investment subsidy, interest rebate, capital subsidy and rebate on land cost. Mega projects would be entitled to additional incentives.

To promote and market AP electronics, a mega electronics event would be organised in the State which would even become a national event for showcasing and promoting electronics industry in India.

The State would adopt mission approach to give fillip to the industry. A committee-Empowered Mission for Electronics and IT Promotion would have its headquarters in Visakhapatnam and headed by a technocrat.

A high-level single window clearance would be put into operation with an aim to give approvals within four weeks. If approvals are not granted within time frame, they would be deemed as approved.

All the layouts, zones and corridors where IT and electronics units would come up would be accorded the status of Industrial Authority Local Area immediately. The new policy supersedes Andhra Pradesh Electronics Policy 2012-2017.