JOIN USAfter emerging as one of the top destination in the country for software industry, Andhra Pradesh has now come up with an “electronic hardware policy” to woo investments in the sector.
The new policy foresees many incentives including 100 per cent reimbursement of Value-Added Tax (VAT) and Goods and Services Tax (GST) for a period of five years to those who set up units in Hyderabad and other parts of the state.The 2012-17 policy, was unveiled by Chief Minister N Kiran Kumar Reddy during the two-day “Advantage AP IT summit-2012” which concluded here recently. Under the policy, the government has also exempted the electronic hardware industry from any power cuts and statutory inspections, except in the case of a specific complaint, besides facilitating three-shift operations with women working in the night shifts as well.
Among the key initiatives , the government has proposed to create four hardware clusters in and around the newly-built outer ring road around Hyderabad, common testing and incubation facilities, a common fund under Public-Private Participation (PPP) to promote design, manufacturing, assembling and innovation and a single-window system for necessary clearances.
The government has brought under the policy nearly 170 non-semiconductor items besides a whole range of semiconductor manufacturing and testing equipment and parts used in making semiconductor equipment.The incentives such as 100 per cent reimbursement of stamp duty, transfer duty and registration fee paid on sale/lease deeds, 50 per cent reimbursement on second transaction, power subsidy ranging from 10 per cent to 50 per cent limiting to Rs 30 lakh for a period of five years. are also offered to companies.