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STATE POLICY - KARNATAKA
7 Promotional Initiatives under the / ESDM Policy
Government of Karnataka hereby outlines the following Promotional initiatives under the ESDM Policy , Which Will enable the State to be a leading contributor in India ' s ESDM sector and make the State a preferred destination for investments in ESDM .
7.1 Preferential Market Access ( PMA ) Policy 7.4 Electronics Manufacturing Clusters :
In line with the Government of India policy ,
Karnataka will promote the Creation of high-class
Preferential Market Access shall be given to
ESDM Manufacturing Clusters ( EMC ) to provide
" Karnataka ESDM companies " for the ESDM
world-class infrastructure facilities necessary to
products procured by all Government Departments
attract investment into the ESDM Sector including
of Karnataka . The year wise PMA and value addition
EMS and component manufacturing . The State will
thresholds for each product shall be in line with the
encourage participation of the private Sector in a
National Electronics Policy and National Telecom
PPP mode , wherever practical , in developing such
Policy as shown below . This Policy shall be
infrastructure . Karnataka ' s EMC policy shall provide
applicable from the date of notification and shall
additional incentives on top of those offered by
remain in force for a period of next 7 years .
Government of India ' s Electronics Manufacturing
For the purpose of becoming eligible under the PMA ,
Cluster scheme notified by Deity .
domestically manufactured Electronic products are
7.4.1 The policy will support the development of seven
those that are manufactured by Companies
ESDM Manufacturing Clusters ( EMC ) in the State by
registered and established in Karnataka and
2020 . The EMCs shall provide internal and external
engaged in manufacturing , including Contract
infrastructure , inclusive of advanced logistics , shared
manufacturers , but excluding traders . These
testing and training facilities . Support of
Electronic products shall meet the following graded
Government of Karnataka for infrastructure
domestic value addition in terms of Bill of Material
development in EMCs shall not exceed 20 % of the
( BOM ) for domestic manufacturers :
total infrastructure Cost .
The formula for Value-Addition is :
7.4.2 The EMCs will be laid out keeping in mind the latest
Product Price ( Ex-factory )
: A
international Standards of town and Country
Cost of Bill of Material ( BOM ) in " A "
: B
BOM Sourced from domestic Manufacturers : C
planning and being made environment-friendly with proper Segregated disposal mechanism and landscaped lung space .
Value Addition in terms Of BOM
: ( C / B )* 100
7.4.3 Development of complimentary infrastructure such
7.2
Setting-up of ESDM innovation Centers :
as Roads , Railways , etc ., ensuring proper
Karnataka will set up three ESDM innovation centers
connectivity between the cluster and the appropriate
that will provide complete infrastructure to
Airport / Seaport / Railway Stations .
entrepreneurs and companies who want to take their
7.4.4
The Government shall make efforts to increase the
product concept and implement a working
number of trains and aircraft operating to and from
prototype . Such innovation Centers Will have all the
major cities of Karnataka to facilitate better
requisite design tools such as VLSI design tools ,
movement of goods and passengers .
7.3
prototype development facilities , testing facilities , characterization labs , compliance and certifications labs along with requisite manpower and component
Stocks . The first Such Center shall be housed at IITaudience
Bangalore and Subsequent Centers will be setup in other parts of the state .
Semiconductor IP and Fabless Chip Design fund :
7.5
and build a strong ‘ Brand Karnataka ’ for
Establishing ‘ Karnataka Brand ’ globally
The Government Will market Karnataka as an attractive ESDM Center for the global investor
ESDM . The State shall work with the external affairs ministry to conduct road shows for foreign ambassadors in Delhi , sign MoUs with identified
To Stimulate the Creation of Fabless Design
" Sister-Cities " in other Countries , and engage with
Companies and Semiconductor IP , which Will be
the 50 top ESDM companies of the world to
needed in the ESDM Sector , the Government Will
proactively invite investments into the State .
launch a Semiconductor IP and Fabless Fund that will provide funding to Karnataka ESDM companies for their startup , growth and debt / working capital needs in the next seven years . This fund will work closely with the ICT Innovation Fund and shall be jointly funded by the Government of Karnataka ,
Government of India and Other Public / Private
7.6
Innovation Promotion
Government will promote innovation in the ESDM
Sector through Awards by way of grants . The best innovations in the ESDM sector will be selected by the Screening Committee comprising of Industry and
Academia representatives .
Financial Institutions . The Government of Karnataka contribution shall be limited to 26 % of the fund size .
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