Latest news with #ElectronicsComponentManufacturingPolicy
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Business Standard
01-08-2025
- Business
- Business Standard
Andhra unveils ₹4,600 cr policy to boost electronic component manufacturing
The government of Andhra Pradesh on Friday cleared a dedicated Electronics Component Manufacturing Policy, with incentives totalling around Rs 4,600 crore for manufacturers. This move is expected to help the state achieve an overall target of $100 billion in investments within the electronics ecosystem, according to a government source. The state plans to develop areas like Sri City, Hindupur, and Kopparthy as strategic hubs for electronic component manufacturing. As a special incentive, the policy includes an early bird incentive for the first ten projects, requiring a minimum committed investment of Rs 250 crore over five years. This includes a capital subsidy of up to 50 per cent of the investment, paid in two equal annual instalments. Additional incentives include land offered at a 75 per cent discounted price. This policy follows the launch of the Central government's Electronics Components Manufacturing Scheme (ECMS) four months ago, which offers incentives of around Rs 22,919 crore. The Ministry of Electronics and Information Technology has reportedly received around 100 applications from Indian and international companies to set up units under the ECMS. Additionally, the Andhra Pradesh government will provide a 100 per cent subsidy matching the amount approved and released by the Central government under the ECMS. This subsidy will be disbursed within six months of the Centre releasing the corresponding incentive under ECMS, in the applicable proportion. However, firms receiving the early bird incentive are not eligible for this subsidy. 'The move is expected to benefit companies like Syrma SGS and Daikin Industries, which have already committed significant investments in the state,' said a government source. 'A key beneficiary will be Syrma SGS, which is applying for incentives to set up India's largest PCB plant and copper-clad laminate factory with an investment of Rs 1,800 crore. This project will be established in partnership with South Korean firm Shinhyup Electronics, which will bring technological expertise to the venture,' he added. Other incentives include a 100 per cent exemption on electricity duty for six years from the notification of the policy, along with reimbursement of power costs, SGST, and stamp duty. Recruitment assistance will also be provided, as per the Andhra Pradesh Electronics Policy 4.0. The state is looking to attract investors at a time when India's electronics production has reportedly doubled over the last six years to $115 billion, driven by global majors like Apple and Samsung. Since Nara Chandrababu Naidu took charge in 2024, Andhra Pradesh has attracted a series of electronics sector investments, including LG Electronics India's Rs 5,000 crore unit, Daikin Industries' Rs 2,475 crore additional investment, Carrier Global's Rs 1,000 crore unit, Wingtech Mobile Communications' Rs 1,061 crore investment, and Sensorem Photonics India's Rs 9,246 crore expansion plans. According to sources, a major factor behind this investor interest is the attractive policy framework for the electronics segment, semiconductors, and display fabs, among others.
Hans India
06-06-2025
- Business
- Hans India
ICEA, IT Ministry urge states to make India a component manufacturing hub
New Delhi: States should work together and leverage Centre's scheme for encouraging domestic manufacturing of electronic components to make India a global hub of components manufacturing, the India Cellular and Electronics Association (ICEA) said on Friday. Various states such as Tamil Nadu, Assam, Uttar Pradesh and Andhra Pradesh are coming up with their own policy for encouraging components manufacturing in their respective states. In an industry event in Andhra Pradesh, Sushil Pal, Joint Secretary, MeitY, emphasised the government's commitment to fostering domestic electronics manufacturing through a hybrid scheme which offers Capex support and turnover linked incentive for components manufacturing. He appealed that states have to play a proactive role in this mission of making India a component manufacturing powerhouse for the world. Bhaskar Katamneni, Secretary, IT & EC, state government, unveiled the draft Electronics Component Manufacturing Policy (ECMP) at the event to encourage manufacturing of electronics components in the state. 'We are not only promoting ease of doing business but also enabling the 'Speed of Doing Business'. Andhra Pradesh is crafting a more competitive and agile policy framework compared to the national landscape,' said Katamneni. He said that the Andhra Pradesh-ECMP will be notified in the next 10 days. Additionally, he also discussed on the draft policy and its offerings, like catalysing investments across the component manufacturing value chain through 50 per cent capex support for components manufacturers in the state, turnover linked incentives doubling the centre's incentives, building specialised infrastructure and plug-and-play clusters, and enabling talent development, skilling and R&D support. Pankaj Mohindroo, Chairman, ICEA said that now is the time that industry should proactively resolve for high domestic value addition in the country and build a robust supply chain for electronics manufacturing. The event was attended by senior government officials from Ministry of electronics and IT and the state, along with manufacturers, industry leaders and other stakeholders of electronics ecosystem.
