DepttDeptt. of . of InformationInformation Technology Technology Govt. of Madhya PradeshGovt. of Madhya Pradesh

Initiatives to Support IndustryInitiatives to Support Industry

Presented by :Presented by :

L K TiwariL K Tiwari

Addl Chief General ManagerAddl Chief General Manager

M P State Electronics Development Corpn. Ltd.M P State Electronics Development Corpn. Ltd.

Ph. No. 0755-2518602Ph. No. 0755-2518602

e-mail - lktiwari@mpsedc.come-mail - lktiwari@mpsedc.com

AVAILABLE INCENTIVES

SINGLE WINDOW CLEARANCE SYSTEM

MP-TRIFAC – Single Window for Project Clearance & Facilitation Mechanism.DIT, GoMP – Work for attracting IT Industries for investment .

APPLICABILITY OF INDUSTRIAL PROMOTION POLICY

All incentives provided under the Industrial Policy shall be applicable to the IT Industries.IT Investment Policy would be a part of the Industrial Promotion Policy 2010 as amended from time to time.

INCENTIVE ON QUALITY CERTIFICATIONS

Reimbursement of 75% of the cost incurred on securing quality certification (CMM/CMMi/PCMM) subject to ceiling of Rs.6 lakhs

LAND USE EXEMPTIONS Exemptions in the existing FAR for IT investment area can be considered on a case to case basis, subject to the relevant provisions of the respective City Development Plan .

Minimum 60% of the total IT investment area shall be used for IT operations.

REBATE IN COST OF LAND

Linked to employment. Applicable only on Government lands/ Development Authorities. Land will be made available at the rate of 25% of the prevalent market rate. Investment in fixed capital will be made within a period of 3 years.

AVAILABLE INCENTIVES Cont…..

Lease rent will be charged at the rate of 1% p.a.Minimum no. of IT/ITES Professionals to be hired by a company to avail the concessions - 100 per acre with 50% residents of MP

Project Cost (In Crores)Project Cost (In Crores) Land available atLand available at concessional rateconcessional rate

Up to 20Up to 20 Maximum 10 acresMaximum 10 acres

2020 to 50to 50 Maximum 15 acresMaximum 15 acres

5050 to 100to 100 Maximum 25 acresMaximum 25 acres

More than 100More than 100 Case to case basisCase to case basis

Land to such units will be allotted according to the table given below:

AVAILABLE INCENTIVES Cont…..

SUBSIDY ON INTEREST & CAPITAL INVESTMENTRelevant provisions of Industrial Policy applicable

REIMBURSEMENT ON SKILL GAP TRAININGS One time reimbursement upto 50% of the cost incurredFor providing skill gap trainings to the employees that are domicile of MP Subject to maximum limit of Rs 10,000 per employee. To be trained within 2 years of commencement of operation

AVAILABLE INCENTIVES Cont…..

BENEFIT ON ENTRY TAXIT units in IT investment area shall be exempted from payment of Entry Tax For all capital goods and raw material purchased by them for a period of 5 years.

FACILITIES TO THE UNITS ON EXPANSION/MODERNIZATIONAll existing IT units which shall undergo expansion/ modernization of their capacity will get all the above facilities on their incremental production as “new IT units”Additional Capital investment in expansion should be minimum 50% of the existing capital investment subject to a minimum of 25 lakhs

AVAILABLE INCENTIVES Cont…..

Electronics System Design & Manufacturing Sector

Automotive Automotive Products for: - digitalization of controls - safety Products for: - digitalization of controls - safety

Consumer ElectronicsConsumer Electronics Set Top BoxSet Top Box

EducationEducation Tablets, Smart PhonesTablets, Smart Phones

EnergyEnergy Inverters (solar/hybrid apps), LED based Lighting Inverters (solar/hybrid apps), LED based Lighting appsapps

Energy efficiencyEnergy efficiency Products and solutions aimed at reduction of Products and solutions aimed at reduction of energy consumption in industries, commercial energy consumption in industries, commercial establishments and homes establishments and homes

HealthcareHealthcare Medical electronic devices for affordable Medical electronic devices for affordable healthcare e.g. Digital Hearing Aid, BP measuring healthcare e.g. Digital Hearing Aid, BP measuring instrumentinstrument

IdentificationIdentification Smart cards Biometric sensorsSmart cards Biometric sensors

Strategic ElectronicsStrategic Electronics Strategic electronics equipment Strategic electronics equipment

TelecomTelecom Customer Premises Equipment for Broadband Customer Premises Equipment for Broadband connectivity in rural areasconnectivity in rural areas

Electronics Manufacturing Cluster Scheme

ObjectivesElectronics Manufacturing Clusters (EMC) Scheme is to provide world-class infrastructure for attracting investments in the Electronics Systems Design and Manufacturing (ESDM) Sector

To encourage manufacturing of specific high priority electronic product lines in India

Setting up of “Greenfield & upgradation of Brownfield EMCs” with world class logistics and infrastructure and easy to do business facilities

To support development of appropriate infrastructure to support the EMCs including development of logistics hub, port-to-factory linkages, roads and highways etc.

Activities supported under the SchemeActivities supported under the Scheme• Basic Development - Internal Roads, Street Lighting etc.

• Essential Services - Water Treatment Plant, Electricity Sub-Station, Backup Power Plant, Warehousing etc.

• Welfare Services - Employee Hostel & Mess, Hospital and ESIC, Educational Facilities etc.

• Support Services - R&D Services, Training Facility, IT Infrastructure/ Telecom etc

• Manufacturing Support - Packaging, Testing and Certification Facility etc.

• Component Testing - Safety, Electrical & mechanical properties, RoHS Testing etc.

• Government Regulatory Support/Services - Development Commissioner, Tax Support, Pollution Control etc.

Assistance by the way of Grant-in-Aid (not equity) to the SPV

Greenfield EMCs:

50% of the project cost (Ceiling: Rs.50 crore per 100 acres of land)

Balance project cost financed by other EMC stakeholders with at least 25% from industry

Brownfield EMCs:

75% of the project cost (Ceiling: Rs.50 Crore)

Balance project cost financed by other EMC stakeholders with at least 15% from the industry

SalientSalient FeaturesFeatures

Minimum financial assistance sought under EMC should be of Rs. 10 crore or more

A minimum 80% of the land to be allotted to processing area

Remaining 20% of the land may be allotted for non processing area like social infrastructure.

A minimum of 75% units within the EMC should be from among the verticals covered under Modified Special Incentives Package Scheme

The ceiling for Government grant in processing area would be 50% and in Non-processing area it would be 20%

Initial contribution of the Central Government @30% of the Central Government share will be released after sanction of the project.

Modified Special Incentive Package Scheme (M-SIPS)

Objectives:

To attract investments into the ESDM sector

To provide a level-playing field and achieve competitiveness in the global market.

To partly offset the disabilities being faced by ESDM industry in India like high transactional costs, complex administrative processes and infrastructural deficiencies.

Applicable to practically all verticals of Electronics Hardware

Financial Financial IncentivesIncentives

• Capex subsidy 25% in non-SEZ and 20 % within Capex subsidy 25% in non-SEZ and 20 % within SEZ for 10 years.SEZ for 10 years.

• Reimbursement of CVD/excise on capital Reimbursement of CVD/excise on capital equipment for non-SEZ unitsequipment for non-SEZ units

• Reimbursement of central taxes and duties (like Reimbursement of central taxes and duties (like custom duties, excise duties and service tax) for custom duties, excise duties and service tax) for 10 years in select high-tech units like fabs, 10 years in select high-tech units like fabs, Semiconductor Logic and Memory chips, LCD Semiconductor Logic and Memory chips, LCD fabrication.fabrication.

((Incentives to be released after end of financial year Incentives to be released after end of financial year in which total investment exceeds threshold valuein which total investment exceeds threshold value))

M-SIPS is for state-of-the-art technologies

Incentives available to units within notified Electronic Manufacturing Clusters (EMCs)

Incentives available for 10 years from date of approval of project by Govt. of India

Investment threshold limits from Rs. 5000 crore for Memory Fab to Rs. 1 crore for Mobile Phone and IT

accessories. All expenditure incurred towards the project will be considered for the purpose of achieving threshold value. For IT products, the investment threshold is

Rs. 10 Crore

Open for 3 years from date of notification in official Gazette of India i.e. till 26-07-2015. Details available at www.deity.gov.in

IT Parks being setup at Bhopal, Indore, Jabalpur & Gwalior in 1st phaseLand available at all locationsEMCs being setup at Bhopal, Jabalpur & Gwalior in first phase and Indore in 2nd phaseLand available at Bhopal, Jabalpur & Gwalior

Initiatives for Jabalpur

63 Acres of Land available at Poorwa and 18 Acres at Gadheri (near Airport) EMC being planned in an area of 40 Acres at Poorwa. Rest of the land at Poorwa and Gadheri earmarked for IT industries.Plan approved by GoMP, DPR for EMC shall be submitted to GoI shortly.

Initiatives of GoMP

Thank You