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Electronic System Design and Manufacturing (ESDM) Policy

The government of Jharkhand introduced the “Jharkhand ESDM Policy 2016” to establish a self-reliant Electronics System Design and Manufacturing (ESDM) Industry that caters to domestic needs besides gaining a foothold in the international market. The policy features include the development of human resources, creation of local demand for electronic products, promotion of ESDM companies in the State, creation of ecosystem for innovation and promotion of R&D.

The sanctioned Electronic Manufacturing Cluster at Adityapur, near Jamshedpur, has recently been operationalized. The Cluster boasts of state-of-the-art facilities and developed plots for setting up of new units in ESDM sector.

A state-of-the-art Electronic Manufacturing Cluster (EMC) under the scheme of the Government of India related electronic park constructed in Adityapur. It is spread over on 82.49 acres of land. Out of total area 82.49 acres of land, 49 acres of land will be used by 51 units to produce electronic related products.

Apart from this, infrastructure work has been done on 33.61 acres of land for the convenience of all the units

So far, about 22 acres of land has been allotted to 30 units in the allocated land. In addition to the plot, JIADA has developed the future ready buildings on 5 acres of land, which is named “Flatted Factory”. In which a total of 92 units can start their production at micro scale immediately. The process of allocation is still going on. There is a possibility of investment of about Rs.400 crores and about direct employment generation of 10000 people.

Incentives to ESDM Sector (as per Chapter 4 of Jharkhand ESDM Policy 2016)

For all ESDM Units

  1. Income Tax Reimbursement - for a period of 5 years (not covered under the 25% cap)
  2. Capital / Investment Reimbursements – 10% of FCI (Subject to maximum of Rs. 10 crores)
  3. Interest subsidy - 50% of interest paid or Rs. 1 crore
  4. Registration and stamp duty concession – 100%
  5. CST incentive – 25%
  6. Reimbursement of 100% of Electricity Duty for 10 years
  7. Quality certification – 100%
  8. Technology acquisition fund – 50% of the cost up to a maximum of Rs. 1 crore for 5 years
  9. Recruitment Assistance - @ Rs. 20,000 per employee with minimum annual recruitment of 10 members
  10. Patent assistance – upto 30 lakhs
  11. Market development assistance
  12. Employment generation grant on EPF for a period of 5 years

Total Fiscal incentives paid shall not exceed 25% of capital Cost

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