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Chandigarh, Oct 24 (IANS) Haryana is taking steps to establish itself as a leading hub of electronics manufacturing by actively trying to attract investments under the Electronics Component Manufacturing Scheme (ECMS) of the central government.
The state will soon announce several incentives under its Electronics System Design and Manufacturing (ESDM) policy, which aims to offer a wide range of fiscal and non-fiscal incentives to attract investments.
In this direction, Chief Secretary Anurag Rastogi on Friday chaired a high-level meeting here to review strategies for setting up electronic component manufacturing plants in the state and accelerating the development of the electronics component manufacturing ecosystem.
The Chief Secretary emphasized that the main objective of the State initiative is to attract large investments, generate employment opportunities and strengthen the integration of the State into the global electronics value chain.
He said while India’s domestic electronics production has seen impressive growth, growing at a compound annual growth rate (CAGR) of 17 per cent since FY15, the design and component manufacturing ecosystem is still in its nascent stage.
Currently, Haryana contributes about 2.9 percent ($0.8 billion) of India’s total electronics exports and supports about 1.3 million jobs in the sector. Rastogi underlined that Haryana has immense potential to expand this contribution through targeted policy support, strategic investor engagement and creation of enabling infrastructure such as the electronics manufacturing cluster at IMT Sohna.
Under the draft new Electronics System Design and Manufacturing (ESDM) policy, the proposed incentives include reimbursement of capital and operating expenditure – expenses incurred for green energy projects, technology acquisition, etc., capacity building and support for development of R&D and innovation facilities.
Industries and Commerce Secretary Amit Kumar Agarwal said the Government of India’s ECMS offers several incentive options, including turnover-linked and capital investment-based benefits ranging between one and 25 per cent.
To complement these, Haryana is also exploring the provision of additional top-up incentives offered by other progressive states such as Andhra Pradesh, Gujarat and Uttar Pradesh, which will enhance the state’s competitiveness in attracting ECMS-approved investors.
–IANS
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