SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 114

STATE POLICY - ANDHRA PRADESH

Context for the Andhra Pradesh Electronics Policy

Government of Andhra Pradesh has recently developed a
entrepreneurship is highly suited to take advantage of the
blueprint “ Re-Imagining Andhra Pradesh – role of e-
opportunities offered by the Electronics sector .
Governance , Electronics and IT ” for development of
The Vision envisaged for the Andhra Pradesh Electronics
Electronics & ICT Industry in the State . It has laid out a vision
Policy 2014-2020 is :
to :
“ To develop Electronics Industry as an important Growth
“ Develop Andhra Pradesh as an Innovation Society of global
Engine for Andhra Pradesh through effective use of the talent
repute , with a focus on enhancing the Quality of Life of its
pool , skill enhancement , promotion of innovation & future
citizens , through high-quality Education and Healthcare ,
technologies and creation of excellent infrastructure .”
increased productivity in Agriculture and allied activities , creation of Employment by promoting Electronics and IT , and above all , by providing Good Governance .”
The Policy aims to attract investments to the tune of USD 5
Bil in ESDM sector and create an employment of 0.4 mil by
2020 .
The blueprint has identified a set of 18 policies and frameworks to realize the vision . The Electronics Policy laid down in this document is one among them . Andhra Pradesh with its huge talent pool , skilled manpower and
Government of Andhra Pradesh intends to achieve its vision , objectives and goals set forth above , through a combination of the following strategies .
1 . Adopting and promoting of NPE 2012 of GoI
Given the comprehensive and holistic nature of the National
1.2
Target investment of Rs 30,000 cr under M-SIPS :
Policy on Electronics 2012 , the Government of Andhra Pradesh
Government would make all efforts to attract
intends to fully leverage the same and build upon its strengths ,
investments to the tune of Rs 30,000 cr ( USD 5 Bil ) and
as state below .
facilitate the units to get the 25 % CapEx subsidy under
1.1
Electronics Manufacturing Clusters ( EMCs ): The EMC
the M-SIPS scheme of GOI .
Scheme intends to create infrastructure highly suited to
1.3
Preferential Market Access : The policy of GOI on
Electronics Units at a subsidy of 50 %. The Government
preferential market access for domestically
of Andhra Pradesh proposes to promote the
manufactured electronics products shall be
development of 20 EMCs across the State , by
implemented in all departments procuring electronics in
facilitating the preparation of project proposals by the
large quantities . Additional preference shall be given to
entrepreneurs , and providing single-window clearances .
AP-based domestic manufacturers .
2 . Building Infrastructure
2.1
Mega Electronics Hub : Government of Andhra Pradesh
shall be with the selected partner . The Government shall
envisages developing Information Technology and Investment
provide such promotional support as needed .
Region ( ITIR ) in Visakhapatnam . In the ITIR , the Government
c .
Appropriate relaxations will be provided from the
would reserve two clusters / areas to be solely developed as
zoning regulations and land usage conversions , subject to
Electronics Hubs . Visakhapatnam is proposed to be developed
environmental safeguards .
as Mega Electronics Hub for the state .
d .
Relaxation to AP Building Rules would be considered ,
2.2
Electronic Hardware Park ( s ): The state Government will
subject to the payment of City Level Infrastructure Impact Fee
facilitate the setting up of the Electronic Hardware Park in
and clearances from Fire Services , Airport Authority and
Kakinada as announced by the GOI . The park would have
conformance to the National Building Code and statutory
‘ State-of-the-art ’ infrastructure with all basic amenities such
regulations .
as internal Roads , water , power and other common facilities
2.6
Renewable Energy : The State Government will encourage
for the investors .
units using renewable energy . Units using renewable source of
2.3
Common Facilities Centre : Common Facilities Centres would
energy with a minimum of 40 % of their power requirements
be created in all identified Electronics Hubs .
coming from renewable sources for their operations and
2.4
Visakhapatnam-Chennai corridor : Fast movement of inputs ,
manufacturing will be eligible for additional incentives such as
components and finished products is essential for cost-
Electricity Duty exemption for 5 years . Sales tax exemption for
effectiveness in the ESDM sector , which otherwise operates on
two additional years shall be available against the Carbon
thin margins . Steps would be taken to enhance the logistics on
Credits earned on a year-on-year basis .
the Visakhapatnam-Chennai Corridor .
2.7
Other Critical Infrastructure :
2.5
PPP for creation of Electronics Hardware Infrastructure : The
a . Air Connectivity : The process of expansion and
facilities , in the form of electronics hubs , hardware Parks and
modernization of the airports at Visakhapatnam and Tirupati
electronics Zones , shall be developed adopting a transparent
are afoot . The Government shall take speedy and effective
PPP policy . The following principles will form part of such a
steps to develop other airports in the state to cater to the
policy :
needs of the industry .
a .
For each project , APIIC shall select a partner , who can
b .
Assured Power : Andhra Pradesh has recently been
be a developer or a consortium of developers and the industry
selected as a pilot State to implement the scheme of 24x7
players , through a bidding process involving QCBS method .
power supply . Within a span of 5 years , the Government
b .
The responsibility of marketing the facilities created
intends to make the State power surplus . As an interim
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