1. In-line with the National Electronic Policy, Govt. of
Gujarat envisions to play a lead role in national building by
facilitating investment in manufacturing industry to
create employment, make economic growth and setup a
globally competitive electronics system design and
manufacturing (ESDM) industry with the right eco-system
in the state.
Incentives for ESDM Units
→ 10% subsidy upto Rs. 1 Cr. for the units whose gross fixed
capital investment (GFCI) is upto Rs. 10 Cr.
→ ESDM units with GFCI above Rs. 10 Cr. but upto 1000 Cr.
shall be entitled to a capital subsidy of Rs. 1 crore plus 5%
of incremental GFCI above Rs. 10 Cr., subject to an
overall ceiling of Rs. 25 Cr.
→ ESDM units with GFCI above Rs.1000 Cr. is entitled to a
capital subsidy of Rs. 25 Cr. plus 5% of incremental GFCI
above Rs. 1000 Cr., subject to an overall ceiling of Rs.
100 Cr.
→ 10% interest subsidy upto 1 Cr. to ESDM Units with
borrowings upto Rs. 10 Cr.
→ ESDM units with borrowings above Rs. 10 Cr., but upto
Rs. 1000 Cr. shall be entitled to an interest subsidy of Rs.
1 Cr. plus 2% of borrowings in excess of Rs. 10 Cr. every
year, subject to an overall ceiling of Rs. 5 Cr. per annum
→ ESDM units with borrowings above Rs. 1000 Cr. shall be
entitled to an interest subsidy of Rs. 5 Cr. plus 1% of
borrowings in excess of Rs. 1000 Cr. every year, subject
to an overall ceiling of Rs. 10 Cr. per annum
→ 100% reimbursement of Stamp Duty and Registration Fee
paid to GoG towards lease/sale/transfer of land
→ VAT reimbursement for all eligible ESDM Units for 10
years upto 90% of GFCI and not exceeding total tax paid
to GoG
→ 100% reimbursement of CST paid to GoG
→ Reimbursement of power tariff subsidy @ Re. 1 per unit
for five years
→ 100% reimbursement of electricity duty paid, upto five
years
→ 100% & 75% EPF reimbursement for female & male
employees respectively for 5 years upto a ceiling of 1 Cr.
per annum
Quality Certification
► 50% assistance upto 6 Lakh for quality certification upto
Patent Assistance
→ 50% assistance upto Rs. 2 Lakh for each
domestic and upto Rs. 5 Lakh for each
international patent subject to a limit of Rs.
10 Lakh for domestic and Rs. 25 Lakh for
international patent for each ESDM Unit
Development Support
→ Assistance to MSME Units for participation
in International Trade Fare outside India @
50% of the expenditure towards rent,
product literature and display material upto
maximum of Rs. 2 Lakh
Support to R&D Institutions
→ Based on the need assistance upto 60%,
maximum upto Rs. 50 Lakh shall be provide
to R&D Institutions, testing facilities and
finishing schools
→ 50% upto Rs. 50 Lakh assistance for
contract/ sponsored research work from
any industrial unit/ association to any AIECT
approved Institution.
?
What are the
incentives for
an ESDM Unit?

2. Products covered under this policy
→ Electronics Manufacturing Services
→ Fabless Companies providing services related to
manufacture of sub-assemblies and parts including
integration services to the Original Equipment
Manufacturers (OEMs)
→ Electronic Gaming and Electronic Toys, etc.
→ Telecommunication Equipment and Cellular infrastructure
equipment including Base stations, transceivers and
associated systems, etc.
→ Mobile phones, Landline phones, fixed wireless terminal
and fixed cellular terminals, Telephone answering
machines, etc.
→ Information and Broadcasting electronic equipment,
including Cable & DTH Set top box, etc.
→ Computing devices such as Laptops, Desktops, Servers,
Storage Media and Tablet PCs, etc.
→ Computer peripherals such as Printer, Mouse, Webcam,
Keyboards, Speakers, etc.
→ Medical Electronics
→ Industrial Electronics
→ Automotive Electronics
→ Avionics and Naval/ Maritime Equipment
→ Atomic Electronics
→ Power Electronics, Grid connecting equipment, etc.
→ Consumer Electronics, including Personal Media, Music
Players, CD & DVD players, etc.
→ Communication and Networking devices, Routers, Modems,
Devices related to ‘Internet of things’, etc.
→ Strategic electronics, including assembly and components
→ Homeland Security devices
→ Biometric electronic equipment
→ Camera and Imaging Equipment
→ e-Waste Recycling equipment and process
→ Electronic Testing and measuring instruments, Weighing
instruments and microprocessors/ controllers and
electronic displays, etc.
→ Memory and Memory Devices
→ Office Automation equipment, like Scanner, printers,
scanners, etc.
→ Power backup/ management systems including Invertors,
SMPS, UPS and Power Stabilizers, etc.
→ Electronic ballasts, Electronic energy meters, other
electronic Meters, Electronic transformers. Chocks, CILs,
Inductors, Electronically-operated vending machines, ATM
Machines, etc.
→ Electronic active/ passive components
→ PCB, its design and manufacturing ecosystem
→ R&D, Prototyping, Testing and Certification
→ Nano Electronics
→ Electronic teaching aids, education equipment, etc.
→ LED Fab, intermediaries and LED products
→ Liquid crystal devices, Electronic display devices including
Flat panel display devices, etc.
→ Traffic control equipment
→ Electronic equipment for Railways, signalling, interlocking
systems for railways, LED, Lights, etc.
→ Software services for electronic devices
→ Solar photovoltaic cell/ modules and panels,
systems/devices, Solar lanterns/ lamps
→ Space application for satellites, etc.
→ Electronic Accessories of various products including mobile
phones, automotive, communication devices, etc., power
adaptors/ chargers, Home electronic fixtures like door
locking system, door closers, etc., Biometric readers,
Smart card readers/writers, RFID readers/writer, RFID tags
& Smart cards turnstiles. Electronically-controlled boom
barriers, etc.
→ All Electronic assembly, sub-assembly, parts, etc.
→ Vertical/ Products/ Services not included in above list will
be referred to a High-Level Committee (HLC) for eligibility
and HLC decision in this regard will be final
Note:
→ Entire value chain of all electronics verticals/ products covered under National Policy on Electronics and related notifications
issued by Government of India are also covered under this policy
→ Value chain includes conceptualization of a Product Idea, Innovation, R&D, Product Design, Components, Assembly, Testing and
Fabrication
Refer to ESDM Policy 2016 – 21 Govt. of Gujarat
Ahmed Mustafa Barbhuiya
www.linkedin.com/in/ahmed-barbhuiya-1b650518