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Tamil Nadu Electronics Hardware Manufacturing Policy 2020

Electronic Hardware

Tamil Nadu Electronics Hardware
Manufacturing Policy 2020

10 min read

This policy is applicable for EMCs, Private ESDM park developers and projects establishing or expanding industrial units in priority Electronics Hardware Manufacturing sectors in Tamil Nadu , from January 1, 2020.

Contents

1. Policy Targets

2. Financial Incentives for Large/Mega companies

3. Financial Incentives for Park Development

Policy Targets

The Tamil Nadu Electronics Hardware Manufacturing Policy aims to increasing Tamil Nadu’s electronics industry output to USD 100 billion by 2025 ; To contribute 25% of India’s total electronic exports to the world by 2025; To attract at least two major FAB investments to Tamil Nadu in the next three years.

For the purpose of administering incentives

Industries with investment range of INR 200 to 500 crores and employment greater than 500 have been categorised as Large category

Industries with investment range greater than 500 crores and employment greater than 2000 have been categorised as Mega category.

Financial Incentives for Large/Mega companies

Incentives

Land Lease Cost Subsidy

Stamp Duty Exemption

Training Subsidy

Interest Subsidy

Exemption from Electricity Tax

Environment Protection
Infrastructure

Intellectual Capital & Enhance
Quality Certification

Category	Investment Range (INR Cr)	Employment	Capital Subsidy
Category	Investment Range (INR Cr)	Employment	District type "A"	District type "B"	District type "C"
Large	200-500 crore	>500	>15%	>20%	25%
Mega	>=500 crore	>>2000	>18%	>24%	30%

Capital Subsidy disbursal in 12 annual installments for firms setting up in District Type “A”
Capital Subsidy disbursal in 15 annual installments for firms setting up in District Types “B” and “C”

Land allotment to be made at 50% subsidized rate for land up to 20% of EFA in District Type “C” for government owned industrial parks.
Land allotment to be made at 50% subsidized rate for private land up to 50 acres in District Type “C” and subject to land cost not exceeding 20% of EFA and a cap of INR 2 crore

A&B Districts

50% of stamp duty exemption for purchase/lease of land obtained from government.

50% of stamp duty will be provided as a back ended subsidy limited to 50 acres.

C Districts

100% stamp duty exemption for purchase/lease of land from government.

100% of stamp duty to be provided as back ended subsidy limited to 50 acres.

Training subsidy of INR 4,000 per first time employee per month till 6 months
Training subsidy of INR 6,000 per first time women employee per month till 6 months

Large:

Maximum 5% interest subvention on actual term loans capped to INR 20 lakhs per annum for a period up to 6 years

Mega:

Maximum 5% interest subvention on actual term loans capped to INR 1 crore per annum for a period up to 6 years

New/expansion units of electronic manufacturing will be provided for a period of 5 years from date on commercial production on power purchased by Tamil Nadu Generation & Distribution Corporation or generated and consumed from captive sources.

Dedicated Effluent Treatment Plants (ETP), Hazardous Waste Treatment Storage and Disposal Facilities would be eligible for the Environment Protection Infrastructure Subsidy as per the Industrial Policy.

50% subsidy on expenses incurred for patent applications limited to INR 5 lakh per application and maximum of INR 50 lakh per firm

50% subsidy on expenses incurred for quality certifications – ISO, ISI, BIS,BEE, ECOMARK or national/international certification up to INR 1 crore per firm

Financial Incentives for Large/ Mega companies

Incentives

Category: Large

Investment range: 200-500 INR Cr

Employment: >500

Capital subsidy

District type "A"	District type "B"	District type "C"
15%	20%	25%

Category: Mega

Investment range: >=500 crore

Employment: >2000