Ahmedabad, 28 November 2014

Department of Electronics & Information Technology (DeitY), Government of India has notified Ahmedabad, Gandhinagar and Vadodara district as the new zone under the Electronic System Design and Manufacturing (ESDM) and Modified Special Incentive Package Scheme (M-SIPS).

All units Within these areas which are located within industrial estates, industrial areas or an area approved By state/central/local government or municipal authorities for use of industrial purpose will be eligible for M-SIPS benefits.

The scheme is available for both new projects and expansion projects. The scheme provides subsidy for investments in capital expenditure – 20% for investments in SEZs and 25% in non-SEZs. It also provides for reimbursement of CVD/Excise for capital equipment for the non-SEZ units. For high technology and high capital investment units, like fabs, reimbursement of central taxes and duties is also provided.

The incentives are available for investments made in a project within a period of 10 years from the date of approval.

The incentives are available for units all across the value chain starting from raw materials including assembly, testing, packaging and accessories and covering 29 verticals of ESDM products.

Gujarat Industrial Development Corporation (GIDC), the state run industrial estate and infrastructure development agency has planned to established major electronic Parks in Khoraj village near Sanand also under the Government of India’s new ESDM and M-SIPS scheme. GIDC is in process of developing electronic park on 300 acre in Khoraj village. GIDC has already applied in the Government of India for considering Khoraj as the ESDM Park. Several Taiwanese, Japanese and Chinese companies’ along with Indian companies are keen to set up their units in the park. Gujarat Government has also announced new Electronics Industry promotion policy few days back and offered several financial and other benefits. A major around Rs.30000 crore semi-conductor unit is also expected to come near Prantij(Himatnagar) which may also be notified under ESDM M-SIPS scheme.

Expected ESDM projects

i. Telecom equipments

vi. Consumer electronics

xi. Semiconductor chips & components

xvi. Nano-electronics

ii. Mobile sets and accessories

vii. Power supply for ESDM products

xii. Fabs for ESDM products

xvii. E-waste processing

iii. Opto electronics

viii. Medical electronics

xiii. LEDs/LCDs

xviii. Automotive electronics

iv. IT hardware

ix. Semiconductor wafering

xiv. Avionics

xix. Electronics manufacturing services etc.

v. Bio-metric/identity devices

x. Solar photovoltaics

xv. Electro-mechanical components