Madhya Pradesh has announced an investment policy that aims to develop electronics hardware and the IT/ITES sectors in the state. Under the policy, electronics hardware manufacturing will qualify for all the benefits that are available to the IT industry.
This will include providing a single window clearance system, applicability of industrial promotion policy, land use exemptions, incentives related to power. Under the new policy, no prior permission will be required for installation of captive power plant, however, the relevant provisions of the Electricity Act 2003 will be applicable in this regard. Electronics Hardware Manufacturing (EHM) units will be exempted from payment of entry tax for a period of five years. A minimum 60 per cent of the total of the IT investment area will be used for IT operations and the balance 40 per cent for ancillary use and support services.