Unravelling AP’s new Electronic Policy

Electronic Design (1)

With the booming market for electronics goods and the opportunity it creates for manufacturing, the AP government has identified electronics as one of its key thrust areas in the Industrial policy 2020-23.

The state government has now come out with a dedicated AP electronics policy which aims to attract investments in this fast growing manufacturing sector.

As per estimates the Indian market for electronics goods stood at USD 118.2 Billion in the year 2019-20 and is expected to quadruple to USD 400 Billion by 2025.

Mobile phones, Industrial electronics, Strategic electronics are some of the major sub-sectors in electronics with growth potential in India.

The Electronics System Design and Manufacturing (ESDM) sector currently provides employment to about 20 lakh people in the country and the Government of India in its National Policy for Electronics 2019 highlighted the strategic importance of electronics manufacturing and set a target to produce 1 billion mobile handsets by 2025.

Keeping these numbers in mind it is therefore paramount that the state of Andhra Pradesh is able to attract investors in this sector.

“APEITA to be nodal agency for implementing policy”

As per a copy obtained by Vizag Industrial Scan the new policy aims to create large scale direct employment and create a robust Electronics ecosystem during the policy period through some of the following:

PPP model for Infrastructure

To create the necessary and state of the art infrastructure the policy aims to work on a PPP model.

‘Wherever possible the State will endeavor to develop Electronics manufacturing infrastructure such as Electronics Manufacturing Clusters, Common Facility Centers, ready-to-occupy infrastructure through a transparent Public Private Partnership model’ stated the policy.

Policy Aims to:

Focus on upstream value chain

Creating large scale employment in the thrust areas of Mobile phones, Consumer electronics, Industrial electronics, Electronics components and Strategic electronics

Creating a robust infrastructure for the Electronics manufacturing industry in the form of Electronics Manufacturing Clusters along with plug and play manufacturing sheds

Special incentive package for Semiconductor and LCD fabs:

As per the policy the Government of Andhra Pradesh will work with large investors with an investment over INR 7,500 Cr. (USD 1 Billion) to create a global fab manufacturing destination. The government will make efforts to not only fast track such investment proposals through a special committee setup but also ensure that these investors are ensured infrastructure and skilled manpower in a rapid manner.

Customized incentive package:

For companies which are approved under the customized package of incentives they shall be eligible to claim only such approved incentives. In order to be eligible under this package, the Electronics manufacturing unit/ company has to generate an employment of more than 4,000 people or invest INR 500 Cr. or above in the State.

The policy will be valid from 1st April 2021 to 31st March 2024 while Andhra Pradesh Electronics & Information Technology Agency (APEITA) will be the nodal agency for implementing the policy.

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