Deptt. of Information Technology
Govt. of Madhya Pradesh
Initiatives to Support Industry
Presented by :
L K Tiwari
Addl Chief General Manager
M P State Electronics Development Corpn. Ltd.
Ph. No. 0755-2518602
e-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
AVAILABLE INCENTIVES
Cont…..
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…..
Land to such units will be allotted according to the table
given below:
Project Cost (In Crores)
Land available at
concessional rate
Up to 20
Maximum 10 acres
20 to 50
Maximum 15 acres
50 to 100
Maximum 25 acres
More than 100
Case to case basis
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
AVAILABLE INCENTIVES
Cont…..
SUBSIDY ON INTEREST & CAPITAL INVESTMENT
Relevant provisions of Industrial Policy applicable
REIMBURSEMENT ON SKILL GAP TRAININGS
One time reimbursement upto 50% of the cost incurred
For 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 TAX
IT 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/MODERNIZATION
All 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
Electronics System Design & Manufacturing Sector
Automotive
Products for: - digitalization of controls - safety
Consumer Electronics
Set Top Box
Education
Tablets, Smart Phones
Energy
Inverters (solar/hybrid apps), LED based Lighting
apps
Energy efficiency
Products and solutions aimed at reduction of
energy consumption in industries, commercial
establishments and homes
Healthcare
Medical electronic devices for affordable
healthcare e.g. Digital Hearing Aid, BP measuring
instrument
Identification
Smart cards Biometric sensors
Strategic Electronics
Strategic electronics equipment
Telecom
Customer Premises Equipment for Broadband
connectivity in rural areas
Electronics Manufacturing Cluster Scheme
Objectives
Electronics 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 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
Commissioner, Tax Support, Pollution Control etc.
-
Development
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
Salient Features
 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 Incentives
• Capex subsidy 25% in non-SEZ and 20 % within SEZ for
10 years.
• Reimbursement of CVD/excise on capital equipment for
non-SEZ units
• Reimbursement of central taxes and duties (like custom
duties, excise duties and service tax) for 10 years in
select high-tech units like fabs, Semiconductor Logic and
Memory chips, LCD fabrication.
(Incentives to be released after end of financial year in
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
Initiatives of GoMP
IT Parks being setup at Bhopal, Indore, Jabalpur & Gwalior in 1st
phase
Land available at all locations
EMCs being setup at Bhopal, Jabalpur & Gwalior in first phase
and Indore in 2nd phase
Land 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.
Thank You