Gujrat government comes with new electronics policy

31 Oct 2022 , 09:47 AM

A new electronics policy was introduced by the Gujarat government on Saturday with the goal of creating 10 lakh new jobs in the state’s Electronics System Design & Manufacturing (ESDM) industry.

According to an official announcement, the “Gujarat Electronics Policy 2022-2028” aims to turn Gujarat into a national ESDM powerhouse by providing investors with a variety of subsidies and incentives.

According to the press release, those looking to invest in Gujarat’s ESDM sector will receive up to 20% capital expenditure (capex) assistance with a cap of Rs200 crore under the policy. Eligible investors will also be entitled to 100% reimbursement on stamp duty and registration fees paid to the government.

While eligible business owners are exempt from paying any electricity taxes, the state government will offer a one rupee per unit power tariff subsidy for a five-year term.

According to the press release, further incentives include a logistics subsidy of up to 25% on freight charges for five years, up to Rs5 crore per year, and interest assistance of up to 7% on a term loan for a period of five years.

According to the policy statement, throughout the next five years, the state government would establish Gujarat Electronics Manufacturing (GEM) clusters for the ESDM ecosystem. These GEM clusters will share infrastructure resources, testing labs, and R&D facilities.

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