SBC - Telangana Electronic Policy

1. TELANGANA ELECTRONIC POLICY
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Telangana Electronic Policy, 2016
Land Related (except Govt land)
stamp duty, transfer duty and registration fees
VAT/CST/SGST Reimbursement
Investment subsidy
Electricity duty exemption
Transport subsidy – Import related
Other incentives
Affordable land cost, 25% subsidy on lease rentals for 10 yrs, 20% of
GOVT allotted land can be used for employee dormitories
100% reimbursement on first transaction, 50 % on second transaction
100 % reimbursement of net VAT/CST/CGST for 7 years
20% up to INR, 2 CRs for first 25 eligible companies
100 % for 5 years
60 % for year 1, 50 % for year 2, 40 % for year 3, 30 % for year 4 and 20
% for year 5
Patent filing assistance, Quality certification cost reimbursement, self-
certification for select acts, statutory power cuts etc.,
The Govt will provide customized benefits to mega benefits and strategic projects on a case to case basis.

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Scheme tenure - 5 years (Application window for a
period of 3 years till 31 March 2023)
Objective - To support setting up of world class
infrastructure for electronics manufacturing
ELCTRONICS MANUFACTURING
CLUSTERS 2.0
Eligibility – Development of electronics
manufacturing clusters (EMCs) and common facility
centres (CFCs) by anchor units. Anchor units will be
required to purchase/ Lease a minimum of 20 % of
Land area and invest minimum of INR 300 Cr.
Incentive – Final assistance will be provided as per table below:
FOR EMC PROJECT FOR CFC PROJECT
For larger areas, pro – rata ceiling
would apply but not exceeding INR
350 Cr per project.
Restricted to 50 % of the project cost
to a ceiling of INR 70 Cr, for every 100
acres of land.
The remaining project cost will be
borne by project implementation
agency(PIA) with a minimum
contribution of 50% of the project cost.
Restricted to 75 % of the project cost
subject to a ceiling of INR 75 Cr.
The remaining project cost will be borne
by project implementation agency(PIA)
with a minimum contribution of 25% of
the project cost
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4. Scheme Tenure
5 years (Application window 4 months
from Apr 1st 2020)
Eligibility
Meeting threshold of incremental
investment and incremental sales of
manufacture goods.
Product Linked Incentive (PLI) Scheme for large scale electronics
manufacturing
Target Segment
Mobile phones and specified electronic
components
Incentive
4% to 6% on incremental sales of
manufactured goods under target
segment over base year i.e. FY 2019-20.
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Target Segments Incentive Rate
Incremental Investment Over base
year
Incremental sales of manufactured
goods over base year
Category 1:
Mobile phones
(Invoice value of INR 15000 and
above)
Year 1: 6 %
Year 2: 6 %
Year 3: 5 %
Year 4: 5 %
Year 5: 4 %
INR 1,000 Cr over 4 years
cumulative minimum:
Year 1: INR 250 Cr
Year 2: INR 500 Cr
Year 3: INR 750 Cr
Year 4: INR 1000 Cr
Year 1: INR 4000 Cr
Year 2: INR 8000 Cr
Year 3: INR 15000 Cr
Year 4: INR 20000 Cr
Year 5: INR 25000 Cr
Category 2:
Mobile Phone (Domestic
companies) **
INR 200 Cr over 4 years cumulative
minimum:
Year 1: INR 50 Cr
Year 2: INR 100 Cr
Year 3: INR 150 Cr
Year 4: INR 200 Cr
Year 1: INR 500 Cr
Year 2: INR 1000 Cr
Year 3: INR 2000 Cr
Year 4: INR 3500 Cr
Year 5: INR 5000 Cr
Category 3:
Specified Electronic components
INR 100 Cr over 4 years cumulative
minimum:
Year 1: INR 25 Cr
Year 2: INR 50 Cr
Year 3: INR 75 Cr
Year 4: INR 100 Cr
Year 1: INR 100 Cr
Year 2: INR 200 Cr
Year 3: INR 300 Cr
Year 4: INR 450 Cr
Year 5: INR 600 Cr

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With the success of modified special incentive packages scheme
(M-SIPS), the Government has introduced this scheme to
promote manufacturing of electronic components and semi-
conductors.
The scheme will help to offset the disability for domestic
manufacturing in order to strengthen the electronic
manufacturing ecosystem on the country.
Applicants shall be entitled to benefits under any
other scheme(S) of Government of India.
Scheme for Promotion of manufacturing of
Electronic components and semiconductors
(SPECES)
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P A G E
Incentives
25% of capital
expenditure (defined
in next slide) for the
manufacturing of
notified goods.
Eligibility
Applicable to all
investments in new units
as well as expansion of
capacity/modernization
and diversification of
existing units
Ineligibility
Investments
committed by
applicants under M-
SIPS scheme for
which any incentives
have been taken
Scheme Tenure
5 years (Application
window 3 years till
Mar 31st 2023)
Scheme for Promotion of manufacturing of Electronic components and
semiconductors (SPECES)
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8. Capital expenditure will be total of expenditure as
under:
• Plant, Machinery and equipment
• Associated utilities
• Technology including for research and development
(R&D)
• Refurbished P&M, Equipment, Associated utilities and
R&D, whether imported or domestic, cannot exceed 20%
of the eligible P&M, equipment, Associated utilities and
R&D.
Scheme for promotion of
manufacturing of Electronic
components and
semiconductors (SPECS)
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Manufacturing or other operation in bonded warehouse Manufacture and
other Operations in warehouse regulations (MODWR), 2019
Customs duty is payable at the time
of import of goods into India
generally. However, MODWR, 2019
provides far duty determent in case
of imports, subject to various
compliances and procedures.
Grant of License
 For deposit of dutiable goods
 To carry on any manufacturing or
other operations in a warehouse.
Operational Mechanism
 Goods imported into India can be deposited in
a private warehouse, by way of filing a Bill of
Entry for warehousing, but without payment
of any customs duty.
 Manufacturing or other operations can be
carried out on such goods in the private
warehouse.
 Clearance of goods can be done for home
consumption or export
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Duty determent on import of
Inputs/Capital Goods.
Manufacturing or
other operation in
bonded warehouse
Manufacture and
other Operations
in warehouse
regulations
(MODWR), 2019
No customs duty on direct
exports from warehouse
Pay customs duty on
domestic clearance of capital
goods/Finished or
manufactured goods
Procurement from Domestic
Tariff Area(DTA) Permissible
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