What is Gujarat’s Electronics Policy 2022? New policy to generate 10 lakh new job opportunities

A new electronics policy was introduced by the Gujarat government on Saturday with the goal of creating 10 lakh new jobs in the state's Electronics System Design & Manufacturing (ESDM) industry. According to an official announcement, the "Gujarat Electronics Policy 2022-2028" aims to turn Gujarat into a national ESDM powerhouse by providing investors with a variety of subsidies and incentives.

Prior to the Gujarat assembly elections, the new Electronics Policy 2022 made a pledge to double employment opportunities from the previous policy introduced in 2016.

By the end of 2028, the new policy unveiled by Minister for Science and Technology Jitu Vaghani intends to generate USD 30 billion from Gujarat's electronic manufacturing industry and create 10 lakh new jobs.  The Gujarati government first unveiled its Semiconductor Policy in June 2022, promising to generate two lakh jobs over the next five years.

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What are the subsidies and incentives provided in new policy?

The programme would provide up to 20% capital expenditure (capex) support to anyone looking to invest in Gujarat's ESDM sector, with a cap of Rs 200 crore, according to the statement released. Eligible investors will also be entitled to 100% refund of any stamp duty and registration fees they paid to the government.

The state government would offer a power rate subsidy of Rs 1 per unit for five years, while eligible businesses are free from paying any electricity costs. According to the press release, further incentives include logistics subsidy of up to 25% on shipping costs for five years, up to Rs 5 crore per year, and interest aid of up to 7% on a term loan for a period of five years.

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The new policy offers ESDM units a logistics subsidy. The government has promised to support the transportation of goods, raw materials, and machinery needed for core manufacturing operations, consequently lowering the operational expenses of such units. Additionally, up to Rs 5 crore, the government will cover 50% of the expense required for the import of manufacturing equipment.

The state government will create Gujarat Electronics Manufacturing (GEM) clusters for the ESDM ecosystem during the course of the following five years, in accordance with the policy plan. These GEM clusters will share infrastructure resources, testing labs, and R&D facilities.

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(With inouts from PTI)