AP rolls out its electronic hardware policy


The Electronic Hardware Policy was officially released by N Kiran Kumar Reddy, Chief Minister of Andhra Pradesh at the Advantage AP 2012 held in Hyderabad recently. Andhra Pradesh, is the first Indian state to announce and implement the Electronic Hardware Policy, wherein a 20 per cent allocation is made for government funded projects in electronic hardware to small and medium enterprises (SMEs).

According to the AP Electronic Policy released for a five year term from 2012-17, the startups and micro units will be extended a 10 per cent subsidy on capital equipment for technology upgradation, besides which 25 per cent subsidy on lease rentals of upto Rs 5 lakhs annually for a term of three years has been specified.

For units that are located close to the seaports, like Vishakapatnam, Vijayawada, Warangal and Tirupati, an 100 per cent reimbursement of stamp duty, transfer duty and registration fee paid on sale/lease deeds on the first transaction shall be allocated. A subsidy of Rs 10 lakhs to the first five anchor electronic hardware companies employing more than 100 workforce will be offered.

A special negotiated package on incentives will be offered for priority projects in the ESDM sector proposed to be set up by the electronic hardware companies for the manufacture of ESDM including PV/fab/semiconductor design, manufacturing, assembling, testing and packaging plants. Also land will be allotted to the electronic hardware industry which is subject to availability, on fulfilment of certain eligibility criteria by applicant company on payment of land cost and development cost as determined from time to time.


A nodal wing within the IT&C Department in line with the Single Window Act 2002 will be created to act as a single window to deal with customs/excise and other State and Central Government agencies.



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