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Electronic Hardware
Tamil Nadu Electronics Hardware
Manufacturing Policy 2020
10 min read
This policy is applicable for EMCs, Private ESDM park developers and projects establishing or expanding industrial units in priority Electronics Hardware Manufacturing sectors in Tamil Nadu , from January 1, 2020.
Contents

1. Policy Targets

2. Financial Incentives for Large/Mega companies

3. Financial Incentives for Park Development

Policy Targets
The Tamil Nadu Electronics Hardware Manufacturing Policy aims to increasing Tamil Nadu’s electronics industry output to USD 100 billion by 2025 ; To contribute 25% of India’s total electronic exports to the world by 2025; To attract at least two major FAB investments to Tamil Nadu in the next three years.
For the purpose of administering incentives
Industries with investment range of INR 200 to 500 crores and employment greater than 500 have been categorised as Large category
Industries with investment range greater than 500 crores and employment greater than 2000 have been categorised as Mega category.
Financial Incentives for Large/Mega companies
Incentives
Land Lease Cost Subsidy
Stamp Duty Exemption
Training Subsidy
Interest Subsidy
Exemption from Electricity Tax
Environment Protection
Infrastructure
Intellectual Capital & Enhance
Quality Certification
Category Investment Range
(INR Cr)
Employment Capital Subsidy
District type "A" District type "B" District type "C"
Large 200-500 crore >500 >15% >20% 25%
Mega >=500 crore >>2000 >18% >24% 30%
  • Capital Subsidy disbursal in 12 annual installments for firms setting up in District Type “A”
  • Capital Subsidy disbursal in 15 annual installments for firms setting up in District Types “B” and “C”
  • Land allotment to be made at 50% subsidized rate for land up to 20% of EFA in District Type “C” for government owned industrial parks.
  • Land allotment to be made at 50% subsidized rate for private land up to 50 acres in District Type “C” and subject to land cost not exceeding 20% of EFA and a cap of INR 2 crore
A&B Districts
50% of stamp duty exemption for purchase/lease of land obtained from government.
50% of stamp duty will be provided as a back ended subsidy limited to 50 acres.
C Districts
100% stamp duty exemption for purchase/lease of land from government.
100% of stamp duty to be provided as back ended subsidy limited to 50 acres.
  • Training subsidy of INR 4,000 per first time employee per month till 6 months
  • Training subsidy of INR 6,000 per first time women employee per month till 6 months
Large:
Maximum 5% interest subvention on actual term loans capped to INR 20 lakhs per annum for a period up to 6 years
Mega:
Maximum 5% interest subvention on actual term loans capped to INR 1 crore per annum for a period up to 6 years
New/expansion units of electronic manufacturing will be provided for a period of 5 years from date on commercial production on power purchased by Tamil Nadu Generation & Distribution Corporation or generated and consumed from captive sources.
Dedicated Effluent Treatment Plants (ETP), Hazardous Waste Treatment Storage and Disposal Facilities would be eligible for the Environment Protection Infrastructure Subsidy as per the Industrial Policy.
50% subsidy on expenses incurred for patent applications limited to INR 5 lakh per application and maximum of INR 50 lakh per firm
50% subsidy on expenses incurred for quality certifications – ISO, ISI, BIS,BEE, ECOMARK or national/international certification up to INR 1 crore per firm
Financial Incentives for Large/ Mega companies
Incentives
Category: Large
Investment range: 200-500 INR Cr
Employment: >500
Capital subsidy
District type "A" District type "B" District type "C"
15% 20% 25%
Category: Mega
Investment range: >=500 crore
Employment: >2000
Capital subsidy
District type "A" District type "B" District type "C"
18% 24% 30%
  • Capital Subsidy disbursal in 12 annual installments for firms setting up in District Type “A”
  • Capital Subsidy disbursal in 15 annual installments for firms setting up in District Types “B” and “C”
Land Lease Cost Subsidy
  • Land allotment to be made at 50% subsidized rate for land up to 20% of EFA in District Type “C” for government owned industrial parks.
  • Land allotment to be made at 50% subsidized rate for private land up to 50 acres in District Type “C” and subject to land cost not exceeding 20% of EFA and a cap of INR 2 crore
Stamp Duty Exemption
A&B Districts
50% of stamp duty exemption for purchase/lease of land obtained from government.
50% of stamp duty will be provided as a back ended subsidy limited to 50 acres.
C Districts
100% stamp duty exemption for purchase/lease of land from government.
100% of stamp duty to be provided as back ended subsidy limited to 50 acres.
Training Subsidy
  • Training subsidy of INR 4,000 per first time employee per month till 6 months
  • Training subsidy of INR 6,000 per first time women employee per month till 6 months
Interest Subsidy
Large:
Maximum 5% interest subvention on actual term loans capped to INR 20 lakhs per annum for a period up to 6 years
Mega:
Maximum 5% interest subvention on actual term loans capped to INR 1 crore per annum for a period up to 6 years
Exemption from Electricity Tax
New/expansion units of electronic manufacturing will be provided for a period of 5 years from date on commercial production on power purchased by Tamil Nadu Generation & Distribution Corporation or generated and consumed from captive sources.
Environment Protection Infrastructure
Dedicated Effluent Treatment Plants (ETP), Hazardous Waste Treatment Storage and Disposal Facilities would be eligible for the Environment Protection Infrastructure Subsidy as per the Industrial Policy.
Intellectual Capital & Enhance Quality
Certification
50% subsidy on expenses incurred for patent applications limited to INR 5 lakh per application and maximum of INR 50 lakh per firm
50% subsidy on expenses incurred for quality certifications – ISO, ISI, BIS,BEE, ECOMARK or national/international certification up to INR 1 crore per firm
Financial Incentives for Park Development
EMC Clusters
Private ESDM Park Development
  • Land lease cost subsidy similar to the one provided to Large/Mega companies.
  • Stamp duty exemption similar to the one provided to Large/Mega companies
  • Interest subsidy similar to the one provided to Large/Mega companies
  • Facilitation through the Tamil Nadu Single Window Portal
  • Reimbursement of Land lease cost subsidy similar to the one provided to Large/Mega companies.
  • Reimbursement of Stamp duty exemption similar to the one provided to Large/Mega companies
  • Reimbursement of Interest subsidy similar to the one provided to Large/Mega companies
  • Facilitation through the Tamil Nadu Single Window Portal
Financial Incentives for Park Development
EMC Clusters
  • Land lease cost subsidy similar to the one provided to Large/Mega companies.
  • Stamp duty exemption similar to the one provided to Large/Mega companies
  • Interest subsidy similar to the one provided to Large/Mega companies
  • Facilitation through the Tamil Nadu Single Window Portal
Private ESDM Park Development
  • Reimbursement of Land lease cost subsidy similar to the one provided to Large/Mega companies.
  • Reimbursement of Stamp duty exemption similar to the one provided to Large/Mega companies
  • Reimbursement of Interest subsidy similar to the one provided to Large/Mega companies
  • Facilitation through the Tamil Nadu Single Window Portal
Want to know more about Tamil Nadu Electric Vehicle Policy 2019?
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Want to know more about Tamil Nadu Electronics Hardware Manufacturing Policy 2020?
Download the policy now!
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