With a view to generate 1 million employment opportunities in a span of five years, the Gujarat government unveiled a new Electronics Policy – 2022-2028 on Saturday.

Announcing the policy, Gujarat chief minister Bhupendra Patel said that the new electronics policy will not only lay the foundation for manufacturing for electronic products in Gujarat but it will also give momentum to Prime Minister Atmanirbhar Bharat initiative.

The new electronics policy is aiming to make Gujarat a major contributor in the global value chain of semiconductor manufacturing and also encourage industry-led R&D and innovation. The policy is eying at producing electronics items in tune with $30 billion to achieve the Prime Minister’s vision of producing $300 million worth of sustainable electronics manufacturing and exports by 2026.

For the purpose, the state government has made provisions and relaxation including one-time reimbursement of 100% stamp duty and registration fee on the sale/transfer of land and entitling ‘eligible units’ for a 7% loan on the interest paid, with a ceiling of Rs 10 crore per annum.

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As part of the policy, Gujarat State Electronics Mission (GSEM) will be set up to facilitate the growth of a vibrant electronics ecosystem, said a senior official with Gujarat’s science and technology department adding that GSEM will also run partnership programs with national and international agencies to enable commercialisation of the product and also skill development.

Gujarat is the first and only state in the country to issue a sector-focused Semiconductor Policy (2022-27) which aims to make Gujarat a major contributor in the global value chain of the semiconductor and display manufacturing sector.

The new policy is also offering a logistic subsidy to beneficiary electronics manufacturing units for the transportation of goods, raw materials and machinery. Eligible units are entitled to get the support of up to 25% of the freight charges for import subject to a maximum ceiling of Rs 5 crore per year for the period of policy.

It also offers one-time support for relocating manufacturing operations from outside India to Gujarat. In such cases reimbursement of 50% of the cost incurred on import of manufacturing equipment up to a maximum ceiling of Rs 5 crore.

Under the policy, incentives on power tariff and electric duty will be given to beneficiary units. Besides, such units will also get assistance under Atmanirbhar Rojgar Sahay. Gujarat government is also aiming to develop electronics clusters in different parts of the state including that of the Dholera Special Investment Region.