The Tamil Nadu government on Monday released a new comprehensive Electronics Hardware Manufacturing Policy 2020 to achieve multi-pronged objectives. The State aims to increase Tamil Nadu’s electronics industry output to $100 billion by 2025 and to make the sector in the State to contribute about one-fourth of India’s total electronic exports to the world by the same year.
Under the proposed policy, the government will undertake skill training for more than 1,00,000 people (semi-skilled and skilled) by 2024 to meet the incremental human resource requirement projected by NSDC for Tamil Nadu in Electronics and Hardware Manufacturing sector.
The objective is to transform the State into an innovative and a globally competitive electronics system design and manufacturing (ESDM) destination, according to the policy statement.
The policy seeks to provide adequate infrastructure and supporting ecosystem to ESDM companies and attract global major ESDM players to invest in Tamil Nadu.
It will incentivise home-grown start-ups in the ESDM sector both in the component and OE/ product manufacturing sub-sectors. The policy will catalyse the growth of innovation led enterprises involved in the manufacturing of hardware products & solutions and to develop the semiconductor fabrication (FAB) industry in Tamil Nadu.
With the new policy the State government aims to attract at least two major FAB investments to Tamil Nadu in the next three years.
The policy also seeks to increase the level of value addition that is done in Tamil Nadu, especially across focus sectors such as mobile handsets, LED products, fabless chip design, PCBs, solar photovoltaic cells, medical electronics, and automotive electronics.
There will be a focused research and development programme to achieve the above objectives, and foster an environment of research and innovation.
Sub-sectors
It has identified 14 sub-sectors as priority areas to extend support and develop core competencies.
Financial incentives will be offered based on three categories – MSME, large and mega. Investments in the range of ₹200-500 crore will come under large category, while more than ₹500-crore investments will be under the mega category
Financial incentives for large and mega projects include capital subsidy, subsidy on land lease cost, stamp duty exemption, training subsidy, interest subsidy, exemption of electricity tax, subsidy for intellectual capital and enhanced quality certification and environment protection infrastructure. Also, there will be incentives for EMC clusters and Private ESDM park developers.
All clearances that are required for setting up new electronics enterprises or expansion of existing enterprises under this policy shall be processed via the single window portal of guidance.
The State government will promote creation of EMCs through ELCOT, SIPCOT, SIDCO and other agencies to provide world class infrastructure facilities necessary to attract investment in ESDM sector including EMS and component manufacturing. Apart from power and other infra support, four-two lane road connectivity to the EMCs from the nearest national highways/ state highways will also be facilitated.
Through ELCOT, it will promote electronic hardware manufacturing industries in the eight existing SEZs. The State government through ELCOT, SIPCOT and SIDCO will also promote industrial housing projects near existing and new ESDM hubs.