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Electronics Policy 2014-2020

Key Highlights

  • Foxconn’s plant setup to manufacture phones of Xiaomi and Gionee, Asus, Oppo, Microsoft
  • Sri Venkateswaramobile and electronics manufacturing hub in Tirupati to house leading Indian mobile manufacturers
  • Nellore, Chittoor, Visakhapatnam, and Krishna designated as brownfield Electronic Manufacturing Clusters (EMCs)
  • New EMC in Tirupati
  • Planned FinTechhub in Visakhapatnam
  • Broadband connectivity planned at 15 Mbps to all households under Fibergrid
  • Project progress monitoring through drones and sensors

Electronics Policy

Key Policy Targets 2020

Key Initiatives

  • Centre of Excellence for Fabless Semiconductors
  • Promotion of “Electronics AP” by road shows, annual mega electronics event
  • "Electronics Bazaars" to facilitate G2B/B2B/B2G/B2C interactions
  • "Empowered Mission for Electronics & IT Promotion" to give fillip to development of the sector, and take faster and more agile decisions

major clusters / parks

  • Visakhapatnam to be established as major electronics hub, with development of Information Technology Investment Region (ITIR)
  • Electronics Hardware Park to be set up at Kakinada (East Godavari)
  • Development of 20 Electronic Manufacturing Clusters (EMCs)
  • Common Facilities Centre for all identified electronic hubs
  • Nellore, Chittoor, Visakhapatnam, and Krishna designated as brownfield Electronic Manufacturing Clusters (EMCs)
  • Incubation centres in Visakhapatnam, Kakinada, and Tirupati

Key Fiscal Incentives



Stamp Duty, Transfer Duty and registration Fee 100% reimbursement of Stamp Duty, Transfer Duty, and Registration Fee paid on sale/lease deeds on the first transaction, and 50% thereof on the second transaction
vat/cst 100% tax reimbursement for a period of 10 years, subject to a maximum of 100% of fixed capital investment other than land
Electricity Duty 100% exemption for 5 years from commencement of commercial operations (CoCO) for new electronic hardware units
Power Subsidy 50% to micro, 40% to small, 25% to medium, and 10% to large-scale industry, limited to ₹50 lakh for a period of 5 years from date of CoCO
Capital Subsidy 10% of total investment upto ₹5 crore (investment as defined in Indian Companies Act 1956)
Interest Subsidy 5% for a period of 7 years, subject to a maximum of ₹1 crore per annum per unit
Land Cost 25% rebate on land cost limited to ₹10 lakh per acre
Investment Subsidy 20% limited to ₹20 lakh for MSME, and additional 5% investment subsidy, for women/SC/ST Entrepreneurs

Existing Partners

Upcoming projects