State to be made electronics hub

State to be made electronics hub
x
Highlights

In a bid to rejuvenate the existing ‘Electronics Policy 2014-20’, IT minister Nara Lokesh directed the officials to formulate a new policy, which should attract electronics manufacturing companies to establish their units in the state and to develop the state as a hub for electronics.

Amaravati: In a bid to rejuvenate the existing ‘Electronics Policy 2014-20’, IT minister Nara Lokesh directed the officials to formulate a new policy, which should attract electronics manufacturing companies to establish their units in the state and to develop the state as a hub for electronics.

Highlights:

  • IT minister Lokesh calls for changes in electronic policy
  • Aims at investments worth Rs 40,000 cr and employment for 4 lakh by 2020
  • To offer huge subsidy for units with an investment above Rs 1,000 cr
  • Local employment to be made mandatory

Conducting a review meeting with the officials of industries department at Secretariat in Velagapudi on Thursday, Lokesh discussed about the changes to be made in electronics policy, to make it investor-friendly and generate more employment to locals. He directed the officials to formulate new policy, which should be placed in the next Cabinet meeting for approval.

The meeting has decided to provide subsidy to the electronics manufacturing companies based on the investment and employment generation. It was decided to provide a huge subsidy of Rs 250 crore for the mega electronics manufacturing companies, which will invest more than Rs 1,000 crore.

As part of encouraging the new electronics industries, the state government has decided to provide 25 per cent subsidy for the companies which will ground their units within 180 days after coming into agreement. It was also decided to provide 25 per cent additional subsidy, if the company generate 30 per cent employment within 3 years and another 25 per cent subsidy will be given if the company generates 70 per cent employment in 4 years.

If the employment generation completes 100 per cent within 6 years another 25 per cent of subsidy will be provided for the company, according to the new policy.Lokesh said that the government would provide a subsidy of 25 per cent for the general electronic manufacturing units which would come up with an investment of Rs 10 crore to Rs 250 crore. “30 per cent subsidy will be given for electronic manufacturing units which will be established under MSME, Women, SC and ST categories,” he added.

He asserted that the companies should also adhere to their promises and provide employment opportunities to the local people, which would be a mandatory clause in the new policy.The policy aims to attract investments to the tune of Rs 40,000 crore in Electronic System Design and Manufacturing (ESDM) sector and create an employment for 4 lakh by 2020.Principal secretary to industries Solomon Arokia Raj, industries commissioner Siddharth Jain and other officials were present.

Show Full Article
Print Article
Next Story
More Stories