SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 53

ESDM & FDI QUERIES
Manufacturing Sector Enterprises Micro Enterprises Small Enterprises Medium Enterprises
Investment in plant & machinery Does not exceed INR twenty five lakh More than INR twenty five lakh rupees but does not exceed INR five crore More than INR five crore but does not exceed INR ten crore
Service Sector Enterprises Micro Enterprises Small Enterprises Medium Enterprises
Investment in equipments Does not exceed INR ten lakh More than INR ten lakh but does not exceed INR two crore More than INR two crore but does not exceed INR five core
Industrial License ( If required ): No industrial license is
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Industrial areas &
required for setting up electronics manufacturing unit .
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Private land
However if the company is engaged in defence electronics items manufacturing than there is requirement of an industrial license-The details where industrial licensing is required can be seen from the following linksinvestors
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and connecting them to state IDC ’ s / SEZ / NIMZ ’ s
Invest India the national level investment promotion & facilitation agency provides facilitation services for obtaining information on land , arranging location visits for
( https :// www . ebiz . gov . in / industriallicense ),
etc .( http :// www . investindia . gov . in /)
( https :// www . ebiz . gov . in / EbizWeb / page / ebiz / portal / faqdetails
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The list of various states & UT ’ s can be seen from the
& ServiceCode = Central _ DIPP _ 0013 )
following link- ( http :// www . ibef . org / india-at-a-
Factory Land / Office Space : While setting up a factory , acquiring
glance / india-directory / indian-states-directories . aspx )
an industrial land with a clear title is the key step . State
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The list of various state investment promotion agencies
governments have empowered industrial development
can be seen from the following linkcorporations
( IDC ’ s ) which develop land for industrial use .
( http :// www . ibef . org / india-at-a-glance / india-
These IDC ’ s require that an application may be submitted
directory / state-investment-promotion-agencies . aspx )
specifying the desired area size along with the proposed business plan . Applications are reviewed and merits considered before land is allotted . The land for factory can be acquired in
various areas like :
The general information on various state governments can be seen from the presentations available on each state government on the following link-
( http :// www . ibef . org / states . aspx ). In this download the
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Special economic zones
state report .
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Electronic manufacturing clusters
Q . 24 Are there any other state / Central level regulations ?
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National investment & manufacturing zones
Yes , there are many other state-level regulations like getting
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Export oriented zones / Software technology
approvals from the fire department , the pollution control board ,
parks / Electronic hardware technology parks
and environment ministry in some cases . The rules and
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Industrial zones
regulations are different in each state .
Section V Type of manufacturing locations and Electronic Manufacturing Clusters
Q . 26 What are Special Economic Zones and Free Trade Warehousing
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Units in SEZ or FTWZ shall be a positive net foreign
Zones ?
exchange earner ( NFE ). NFE shall be calculated
Ÿ
Special Economic Zones ( SEZ )/ Free Trading & Warehousing
cumulatively for a period of five years from the
Zones ( FTWZ ): The SEZ scheme seeks to provide an
commencement of production .
internationally-competitive and free environment for
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The details of operational SEZ and FTWZ can be seen from
exports . These zones are designated duty-free enclaves
the following link- ( http :// www . sezindia . nic . in / aboutand
are treated like foreign territories for the purpose of
osi . asp )
trade operations , duties and tariffs . The SEZ policy offers
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A branch office can undertake manufacturing activities in
several fiscal and regulatory incentives to units operating
an SEZ unit .
within these zones . The details on SEZ / FTWZ like rules , areas , act , etc can be seen from the following link-
( http :// www . sezindia . nic . in / index . asp )
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Various kinds of incentives are available for a unit set-up in
SEZ is as follows :
Duty free import / domestic procurement of goods for
Spotlight on Indian Electronics 2016 | 53