Karnataka cabinet to decide on incentive package for ESDM on Thursday | Bengaluru News – Times of India


BENGALURU: The state government will be deciding upon a “special incentive scheme for the electronic system design and manufacturing (ESDM) sector”, which will usher in sops for the industry, on Thursday at the cabinet meeting.
Deputy chief minister CN Ashwath Narayan on Wednesday announced the package at a webinar organised by the India electronics and semiconductors association (IESMA).
According to Narayan, the finance department has given its clearance for the incentive package and is now scheduled to get the nod of the cabinet.
As per the new policy, the government has proposed to provide capital investment subsidy of 25 per cent on land and 20 per cent on plant and machinery, apart from a 100 per cent reimbursement on stamp duty, registration charges and land conversion fee.
It will also provide a power tariff subsidy of Re 1 per unit for a period of five years from the commencement of commercial production and a 100 per cent exemption from the electricity duty for five years as well.
Further a production linked incentive for new investments and expansions will also be introduced which will be capped at 1 percent of the annual turnover for a period of five years.
As per the policy, the incentives will be provided to only those companies that set up shop outside Bengaluru and Bengaluru rural jurisdiction.
According to the government, the ESDM industry will provide jobs to the tune of 43,000 to 45,000 people and bring an investment of Rs 6,000 to Rs 7,000 crore to the state.
Meanwhile, the government has decided to continue the cluster based growth of the ESDM sector with Chitradurga (LED lights), Mysuru (PCBA, ICB) and Chikkballapura (mobile phone and electronics).
The government has earmarked about 800 acres of land for 7 SEZs for the ESDM sector alone.
At the other end, industries minister Jagadish Shettar announced that the state government has signed off on a Rs 2,000 crore investment in the flex and film manufacturing sector.
The investment in Karnataka is being made by UFlex company in two stages with biodegradable plastic being manufactured in their units.
The company will require 55 acres of land in total, the state government has approved 60 acres of purchase.
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Sagar Biswas

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