Tamil Nadu Govt. Unveils New Policy For Electronics And Hardware Manufacturing

- Advertisement -
  • The state hopes to contribute 25 per cent of India’s total electronic exports to the world by 2025
  • All incentives offered by the state government to units in the electronics manufacturing industry shall be in addition to the incentives offered by the government of India to those units
  • The government is also reported to formulate a special package of incentives for ESDM units in the MSME sector
  • The state has also claimed to support start-ups in the electronics and hardware space by promoting the development and acquisition of IPs in ESDM sector

According to a report, Tamil Nadu Government has announced a new electronics and hardware manufacturing policy to increase the States’s electronics industry output to $100 billion by 2025. The state hopes to contribute 25 per cent of India’s total electronic exports to the world by 2025. 

The policy also undertakes skill training for more than 100,000 people (semi-skilled and skilled) by 2024. This would help to meet the incremental human resource requirement projected the NSDC for Tamil Nadu in Electronics and hardware Manufacturing sector.

It also targets to increase the level of value addition that is done in Tamil Nadu, especially across focus sectors such a mobile handsets, LED products, chip designs, PCBs, solar photovoltaic cells, medical electronics, and automotive electronics. 

- Advertisement -

National Policy Of Electronics 2019

In loop with the National Policy Of Electronics 2019, the state government has claimed to provide additional support for developing core competencies in the sub sectors. The other prime areas are yet to be undertaken for focused research and development program to achieve the above objectives, and foster an environment of research and innovation.

A foster and conducive environment for ESDM Start-ups is also required. This would help in promoting the rapid growth of innovation-led technology enterprises involves in the design, development and manufacturing of technologically advanced solutions and to attract at least two major FAB investments to Tamil Nadu in the next three years. 

Eligible Investments 

As mentioned in the policy, all incentives offered by the state government to units in the electronics manufacturing industry shall be in addition to the incentives offered by the government of India to those units. Investments made from January 1, 2020 will be considered eligible for availing incentives.

The government is also reported to initiate a special package of incentives for ESDM units in the MSME sector. This will include capital subsidy, interest subvention, low tension power tarred subsidy, generator subsidy, assistance for obtaining intellectual property and assistance in obtaining certifications. MSMEs will also be assisted to scale up their business to serve as a vendor base for large and Mega Investors in this sector.

Core Investments 

For core investments the policy has classified districts in namely three categories. For investments worth Rs 200-500 crore capital subsidy in category A district would be 15 per cent, in category B district 20 per cent and in C category district 25 per cent. 

For investments over Rs 500 crore capital subsidy in A district would be 18 per cent, B district 24 per cent and in C district 30 per cent. For eligible projects in ELCOT /SIPCOT/ SIDCO or any other government-owned industrial parks in C districts, land allotment will be made at 50 per cent subsidised rate for land up to 20% of EFA.

The government has also announced stamp duty exemption, training subsidy, interest subsidy, exemption of electricity tax, environmental protection infrastructure, subsidy for intellectual capital, etc.

Mega Electropreneur Centre 

The state is also looking forward to set up a Mega Electropreneur Centre (MEC) in the form of a Centre of Excellence for Hardware, Products & Ventures to facilitate easy access and to make it practical to build a robust ecosystem for start-ups and entrepreneurs. This CoE shall include a fully self-contained facility to support end-to-end design, development, testing & certification of innovative hardware products, the policy stated.

The state has also claimed to support start-ups in the electronics and hardware space by promoting the development and acquisition of IPs in ESDM sector. This would also support well-functioning ATAL Tinkering Labs for the procurement of new, electronic equipment, establish a cloud server to connect all the incubation centres across the state and make it available to all the start-ups, at low or nominal costs.

- Advertisement -

Most Popular Articles

Automotive car sensor

ISRO Chairman Urges Association With Automotive Industry To Produce Sensors Locally

0
The space research organization is making significant strides in creating indigenous car sensors to empower the automotive industry. At the Bangalore Tech Summit on November...

U.S. Approves $1.5B Subsidy For GlobalFoundries Expansion

0
Winning the $1.5 billion US government subsidy, GlobalFoundries is looking to power industries like automotive, IoT, and defence with advanced chip manufacturing in New...

Trump’s Tariff Plan Could Derange Electronics Pricing

0
From disrupting global semiconductor supply chain to inflating iPhone prices, what can Donald Trump's proposed tariff raise on Chinese imports can cause? Donald Trump,...
Chip Manifacturing-NIvidia

New Blackwell Chip Will Propel Nvidia’s Unprecedented Market Growth In Coming Years

0
These chips have effectively dispelled concerns regarding potential pullbacks from tech giants investing heavily in AI processing and data centers. The global AI backed fabless...

David Goeckeler Appointed Chair Of SIA Board

0
Bringing 40 years of tech experience to lead the global semiconductor industry, David Goeckeler, CEO of Western Digital, joins to lead the SIA Board...
Abhishek Malik from Calcom Vision Limited

“India’s Electronics Sector Is Growing Rapidly, Making This The Decade For Investors To Engage”...

0
From the complexities of manufacturing and sourcing components to testing processes that drive innovation, know all the exciting dynamics shaping this ever-evolving industry in...
Sunit Kapur, CEO of Epsilon

“Epsilon Leads With Low-Carbon Graphite Manufacturing, Outpaces Chinese Competitors” – Sunit Kapur, CEO of...

0
Are LFP cathodes and silicon-graphite anodes the best for cost efficiency in EV batteries? Sunit Kapur, CEO of Epsilon Advanced Materials, discusses this with...
John W. Mitchell, President and CEO, IPC

“India’s Core Focus On 5G, IoT, AI Fosters Need For Advanced Electronics,Components, And Semiconductors”...

0
Will Industry 4.0 supercharge India’s progress in semiconductor and electronics manufacturing? IPC President and CEO John W. Mitchell shared more strategies on the country’s...
Raman M., Co-Founder and CEO, chargeMOD

“Our Goal Is To Achieve Complete Sustainability By 2025-2026” – Raman M. Of chargeMOD

0
In a conversation with Nitisha Dubey from EFY, Raman M. of chargeMOD, elaborated his goal of developing virtual power plants by decentralising power production. Q....

“Adoption Of IoT-Enabled SMT Machines Is Still In Early Phases” – Pradeep Tandon, Director...

0
While electronics are becoming smarter through the Internet of Things, is electronics manufacturing following suit? Pradeep Tandon, Director for India, Middle East, and SAARC...
Applied Materials Representational Image

Applied Materials Selects Six Startups For Deep-Tech Accelerator Programme

0
The selected deep-tech startups will be evaluated for investment by Applied Ventures and potential collaboration opportunities with Applied Materials. In collaboration with the company's India...

Space tech Startup Akash Secures $68M CHIPS Funding

0
Eyeing to power into AI, EVs, and more high-tech industries, Akash Systems lands $68 million CHIPS grant to boost its cooling tech facility, generating...

Wireless Light-Based Communication With Velmenni’s Technology

0
Velmenni is at the forefront of wireless communication innovation with its pioneering light-based technologies, Li-Fi and LC Link. Founded by Deepak Solanki in October 2014...

Harnessing AI Technology For Efficient Pest Management

0
AI-Genix, an agri-tech startup, is transforming pest management for farmers through advanced AI-enabled systems that precisely target harmful pests. In an industry where pesticides and...

One Charger To Charge All Your Devices

0
Now, there is no need to carry different chargers for different products. This Bhubaneswar startup has launched a universal 65W charger using GaN technology...

Industry's Buzz

Learn From Leaders

Startups