Government Policies Current Affairs - 2020
Odisha Government launched Aerospace and Defence Manufacturing Policy 2018. The policy is aimed to carry forward process of industrialization through promotion of aerospace and defence manufacturing enterprises, generate employment opportunities and promote value addition.
Key Features of Polity
It proposes to extend subsidy upto 50% of cost of land, building, plant and machinery to special purpose vehicle (SPV) for setting up first state-of-the-art Aerospace and Defence Park in the state. This is to attract investment in aerospace and defence manufacturing in the State, the policy
It sets ceiling of Rs. 50 crore for Common Facility Centre, Rs. 30 crore for Technology Innovation Centre and Rs. 25 crore for Testing Centre to be established with private participation. It also provides capital grants of 50% of infrastructure cost limited to Rs. 10 crore for subsequent aerospace and defence parks.
It also extends capital subsidy of Rs. 100 crore for first three OEMs (original equipment manufacturer) for setting up manufacturing facilities in the state with investment of at least Rs. 1000 crore and generating 1000 domiciled employment.
In addition, it allows interest subsidy allowed up to a limit of Rs. 10 Crore per annum and Rs. 5 crore per annum for first three OEMs setting up manufacturing units in the state based on investment in plant and machinery for amount of more than Rs. 500 Crore and between Rs. 100 crore to Rs.500 crore, respectively.
This provision is designed to attract key players to set up units in the state. This will provide impetus for further development of ancillary and downstream units in the state. Enterprises will come up in industrially backward districts namely Kandhamal, Gajapati and Mayurbhanj along with KBK districts will be extended additional incentives.
Tags: Aerospace Manufacturing • Business • Defence Manufacturing • Economy • Government Policies
Union Ministry of Electronics and Information Technology (MeitY) has issued draft ‘National Policy on Electronics 2018’ (NPE 2018) for Electronics System Design and Manufacturing (ESDM) Sector of India. It sets ambitious target of creating $400 billion electronics manufacturing industry by 2025, with mobile phone devices segment accounting for three-fourths of production.
Draft National Policy on Electronics (NPE)
Draft NPE aims to promote domestic manufacturing in entire value-chain of ESDM sector for spur economic development in the country. It also aims to double the target of mobile phone production from 500 million units in 2019 to 1 billion by 2025 to meet objective.
It replaces existing incentive schemes like Modified Special Incentive Package Scheme (M-SIPS), with schemes that are easier to implement such as interest subsidy and credit default guarantee etc. It also takes into consideration interest subsidy and credit default guarantee in order to encourage new units and in expansion of existing units in electronics manufacturing sector.
The set target of $400 billion turnover under it, includes targeted production of 1 billion mobile handsets by 2025, valued at $190 billion (approximately Rs. 13 lakh crore) and also 600 million mobile handsets valued at $110 billion (approximately Rs. 7 lakh crore) for export.
It also proposes to push development of core competencies in all sub-sectors of electronics including electronic components and semiconductors, automotive electronics, defence electronics, industrial electronics, strategic electronics etc. It also proposes to set up 20 greenfield and three brownfield electronic manufacturing cluster projects have been sanctioned with project outlay of Rs 3,898 crore, including Rs 1,577 crore from Central Government.
It proposes suitable direct tax benefits, including inter-alia investment-linked deduction under Income Tax (IT) Act for electronics manufacturing sector, for setting up of new manufacturing unit or expansion of an existing unit. The proposal includes increasing tax benefits on expenditure incurred on R&D, enhancing rate of duty drawback for electronics sector, reimbursement of state levies and other levies for which input tax credit is not available, allowing duty free import of second-hand capital goods for electronics hardware manufacturing etc. It also proposes cess on select electronic goods resources to promote certain critical sub-sectors of electronic manufacturing such as semiconductor wafer fabrication and display fabrication units.