Search the Internet          Tips  Sites: Finance, Investment

Andhra Pradesh announces electronic hardware policy

Syed Amin Jafri in Hyderabad

The Andhra Pradesh government on Friday announced a new liberalised electronic hardware policy to facilitate growth of world-class hardware industry in the state, to complement its success in the software sector.

The main thrust of the new policy is to create state-of-the-art infrastructure such as power, telecommunications, roads, drainage etc and provide them at the doorstep of the proposed industry in identified areas.

The state government has identified an area of 5,000 acres adjacent to the proposed international airport at Shamshabad for development of an international standard 'Hardware Park'.

Initially, an area of 100 acres will be developed as a pilot with all the required infrastructure by the state owned APIIC with private sector participation.

The hardware units will be exempted from statutory power cuts and they will be also be allowed 50 per cent exemption on stamp duty, registration duty etc. Twenty per cent investment subsidy on capital investment on land building, plant and machinery up to maximum of Rs 2 million will be given to eligible small-scale industries and tiny units.

Whenever industries are located in places other than designated industrial areas, the government will share the cost of infrastructure up to 25 per cent or Rs 10 million, whichever is less.

Scheduled Caste and Scheduled Tribe promoters will get additional cash subsidy of 10 per cent. The entrepreneurs will be exempted from rules pertaining to land conversion and also payment of non-agricultural land assessment.

Unveiling the new policy at a two-day national conference on 'Advantage-e-Hardware', Chief Minister N Chandrababu Naidu said that in case of mega projects with capital investment exceeding Rs 5 billion, the government would consider special package on incentives except tax-based incentives on a case-to-case basis.

The state government has created a Hardware Infrastructure Development Fund with corpus of Rs 500 million for the development of the infrastructure in the pilot project and to meet crucial balancing requirements.

The money for the same will come out of the AP Industrial Infrastructure Fund and will be used as seed capital for the pilot project and revolving fund subsequently.

To develop a 'green' hardware industry in the state, the government will levy an environment tax equal to the cost of plantation and maintenance for five years for raising of green belts. Industries which raise green belt to the extent stipulated will be exempted from this tax.

Single-window registration for clearance will be made compulsory by law. In case of EOUs, such clearances will be handled by STPI, Hyderabad. In SEZs, the development commissioner will handle such clearances.

To provide a conductive environment for speedy manufacture of electronic hardware in the state, the state government will take up relevant issues with the Government of India for simplification of customs and central excise laws and for faster airport clearance.

The electronic hardware industry will include electronic components, digital electronic equipment and intermediate products and specified telecom products as per annexure of the WTO-IT agreement.

YOU MAY ALSO WANT TO READ:
IT policy must woo foreign hardware firms, says Naidu

Money
Business News

Tell us what you think of this report