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Bengaluru: Rain of sops for ESDM sector
Today, the world is facing COVID-19 pandemic which not only resulted in a health crisis but has also led to a drastic change in the mode and manner of operating businesses. Digital transformation is now happening at an accelerated pace, making initiatives such as 'Make in India', 'Digital India' and 'Startup India' more important and relevant than before
- Dr C N Ashthanarayan | Deputy CM
Incentives a major boost to investments
Bengaluru: With an aim to attract investments and boost up competitiveness in the ESDM (Electronics System Design and Manufacturing) sector in the state, the Karnataka government on Wednesday announced a slew of incentives, including 25% capital investment subsidy on land.
Addressing the inaugural address of IESA Vision Summit – 2020, Deputy Chief Minister and IT & BT minister Dr C N Ashthanarayan said that this would be applicable to lands extending up to 50 acres and outside Bengaluru Urban and Rural districts. The incentives will be applicable across the state for ESDM companies, which will be set up during the specified 5 years of duration, he explained.
Other incentives include 100% reimbursement on stamp duty and registration Charges, 100% reimbursement on land conversion fee, power tariff subsidy of Rs 1 per unit for a duration of five years from the month of commencement of commercial production, 100% exemption from electricity duty for the same duration from the month of commencement of commercial production, production linked Incentive (for new investments and expansions) of 1% of annual turnover for a period of 5 years starting from the first year of commercial operations.
"Products and activities eligible for incentives under special incentives scheme for the ESDM Sector have been identified and this comprises manufacturing and design of electronics products, semiconductor manufacturing and design, electronic manufacturing services and solar cell manufacturing," he said
The government will provide acknowledgment certificates for companies, which would be given after obtaining approval from relevant clearance committees. "This certificate shall be taken as deemed approval/clearance for the downstream approvals by various departments for an initial period of three years or from the date of commencement of commercial operations whichever is earlier," Narayan said.
The government has recently constituted a dedicated MNC Engagement Cell, which will act as a single point of engagement for all technology MNCs in the state to engage with the government.
The objectives of this are to develop an engagement a platform for overall innovation ecosystem development, to understand the needs of the MNCs/GCCs, to provide hand-holding support for resolution of issues with all GoK entities such as BBMP, Health Department, Industries Department, Urban Development Department, KSPCB, etc, he told.
In consultation with industry, "Karnataka Digital Economy Mission" has been set up to promote digital industry growth and attract investments. The mission will provide handholding services to companies and suggest policy initiatives. This acts as a bridge between the government and the industry.
The Karnataka Digital Economy Mission will be co-chaired by a senior industry member and Additional Chief Secretary/Principal Secretary of Department of Electronics, IT, BT and S&T, Mr. Narayan stated.
To attract investments into the state, the Karnataka government has simplified other regulatory procedures to a large extent. With the Karnataka Udyog Mitra as nodal agency, the single window online portal e-Udyami, Grievance Redressal Cell and Relationship Managers facilitate seamless and time-bound processes for project approval, the grant of statutory permissions and licenses for industries, he said.
"Today, the world is facing COVID-19 pandemic which not only resulted in a health crisis but has also led to a drastic change in the mode and manner of operating businesses. Digital transformation is now happening at an accelerated pace, making initiatives such as 'Make in India', 'Digital India' and 'Startup India' more important and relevant than before, he said.
ESDM will play a potential role in economic recovery with the major driver being the private sector and the government will play the role of an enabler in creating the right policy ecosystem, he said.
The summit is going virtual for the first time considering the convenience & safety of the Global ecosystem participants. The theme of the 15th edition of the summit is 'Driving Self Reliant Digital Economy & Transforming 1.3-Billion Lives'.
