Electronics Policy 2016-21

Scheme of Assistance for ESDM Units
under Electronics Policy (2016-21)
Government of Gujarat
Science and Technology Department
G.R. No: EHM/10/2011/276392/IT
Sachivalaya, Gandhinagar
Date: 29th February 2016.
RESOLUTION
Read: Electronics Policy (2016-21) dated 29.02.2016
Preamble
Electronics System Design and Manufacturing (ESDM) is one of the largest and
fastest growing manufacturing sectors in the world. The Government of India (GoI) has,
through its National Policy on Electronics, 2012, contemplated that the demand for electronic
goods in India will rise to USD 400 billion by the end of the year 2020. The policy has further
contemplated a domestic demand and production gap of nearly USD 300 billion by 2020.
2. With a view to provide focused attention on boosting manufacturing through increased

investment in setting up of ESDM, the Government of India came up with National Policy on
Electronics in the year 2012 which has been subsequently revised from time to time. Under the
provisions of National Policy on Electronics, 2012, Government of India has issued Schemes and
Implementation Guidelines for M-SIPS, Electronics Manufacturing Clusters (EMCs), etc.
3. In the context of National Electronics Policy and associated emphasis on setting up of

Electronics Manufacturing industry in the country, the Government of Gujarat, with a view to
providing focused attention on the subject came out with the Electronics Policy for the State of
Gujarat (2014-2019) which was notified on 12th November, 2014.
4. Since the notification of Electronics Policy by the State Government, the Government of
India has further emphasized the core importance of the sector by focusing on creating facilities
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for electronics manufacturing within the country through policy revisions. Accordingly, the
Government of India has revised M-SIPS Policy and brought in new verticals, simplified approval
process, revised threshold for various industry units and has made policy more attractive by
introducing production subsidy, etc.
5. As the Government of India undertook two major campaigns – National Skill

Development Mission and Make in India Campaign – it also acknowledged the pivotal role that
Electronics Manufacturing Industry can play in economic growth as well as employment
creation. The Department of Electronics and Information Technology (DeitY), Government of
India estimates that with an electronics manufacturing industry of USD 400 billion direct
employment creation of 28 million positions is possible. It has also acknowledged that
electronics manufacturing can give a boost to the overall manufacturing sector thus playing a
central role in creating right ecosystem to realize benefits of huge demographic dividend that
India boasts of.
6. Consistent with above considerations, various State Governments have also either come
out with de novo electronics policy or have revamped their existing electronics policy.
7. The Electronics Policy of Gujarat, notified in 2014 was cast in overall context of Industrial
environment existing in Gujarat. Though Gujarat continues to hold flag position in overall
manufacturing sector in the country, the nature of electronics manufacturing sector and evolving
technology trends therein position it very differently from other sectors of industry and
therefore, require that incentive structure for promoting electronics manufacturing is crafted
differently compared to the one done for other sectors of the industry.
8. In the above background, to ensure that Gujarat positions itself competitively for
attracting investments in electronics manufacturing, to benefit from the investment as well as
the employment generation and to play a proactive, responsible and lead role in matters of
national importance, it became necessary to revisit the provisions of the electronics policy for
the State of Gujarat announced in 2014. Accordingly, Government of Gujarat has come out with
a ‘Electronics Policy (2016 – 2021)’.
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9. The policy referred to above lists out the role of the State Government in creating an
enabling environment and provides for different incentives that EMC and ESDM units getting
setup or expanded to in Gujarat are entitled to. The objective of formulating a scheme to list out
procedure as well as approval mechanism to operationalize the policy in relation to providing
assistance to the Electronics System Design and Manufacturing (ESDM) units was under the
consideration of the Government. In consideration thereof, the Government of Gujarat resolves
as under:
Resolution
In view of the strategy, approach, specified incentives under the Electronics Policy
(2016-21) referred herein under as the “Electronics Policy”, the Government of Gujarat is
pleased to introduce a “Scheme o f Assistance for the ESDM Industry” which will come into
force from the date of issuance of this Government Resolution and will remain in operation
till the operative period of the Electronics Policy.
1. Definitions:
All the definitions as specified under the Electronics Policy shall have the meaning as
specified therein.
1.1 ‘ESDM’ shall include the entire value chain of all electronic verticals/ products
covered under the National Policy on Electronics and related notifications issued
by the Department of Electronics & Information Technology (DeitY), Ministry of
Communication & Information Technology, Government of India, from time to
time, and will also include computers and peripherals, communication devices,
electronics manufacturing services, strategic electronics and components,
industrial electronics, automotive electronics, telecom electronics equipment,
information and broadcasting electronics equipment, medical electronics,
electronic gaming and electronic toys. The current broad classification of the
products covered under this policy for the electronics sector is at Annexure to this
Policy, which will be deemed to update in consonance with the identified list
under National Policy on Electronics.
1.2 ‘Micro, Small and Medium Enterprises’ (MSMEs) in ESDM shall be construed as
per the definition of such in the MSME Policy of the Government of India.
1.3 ‘Gujarat-based Company’ means a Company having its manufacturing facility in

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Gujarat.
1.4 ‘New Unit’ means a unit which has obtained an acknowledgement for filing
Entrepreneur’s Memorandum (EM) with the concerned District Industries Center
(DIC) or Industrial Entrepreneur’s Memorandum (IEM) with Government of India
for setting up manufacturing facility in ESDM sector in Gujarat during the
operative period of this policy and commences commercial productions / service
either during the operative period or within one year from the date of coming to
an end of this policy.
1.5 ‘Existing Unit’ means a unit which has filed EM with the concerned DIC or IEM
with GoI and is implementing expansion/ diversification in the project for carrying
out activities indicated in this Policy and begins work for such expansion /
diversification during the operative period of this policy.
1.6 ‘Expansion/ Diversification’ An expansion and/ or diversification contemplated

with or without forward/ backward integration in Gujarat, with an investment of
more than 50% of its existing gross fixed capital investment on the date of
initiating expansion/ diversification and commencing production from said
expansion/ diversification during the operative period of the policy, or within one
year from the date of coming to an end of this policy shall be termed as
Expansion/Diversification.
1.7 ‘Eligible Units’ All new/existing units as defined in Point 5 & 6 above will be
eligible for availing of incentives under this Policy. New units will also get benefit
for one-time expansion or diversification during the operative period of this
Policy, if they so undertake. Existing units will get benefit for expansion/
diversification.
1.8 ‘Gross Fixed Capital Investment’ (GFCI) means the investment made in required
building, plant and machinery and other related fixed assets, excluding land,
required to manufacture end products or services by eligible unit within two
years from the date of production or till one year from coming to an end of this
policy, whichever is earlier.
1.9 ‘Empowered Committee’ means shall have the meaning as defined in para 4 of
this GR.
1.10 ‘Competent Authority’ shall have the meaning as defined in para 5 of this GR.
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2. Available Assistance:
All eligible ESDM units shall be entitled to the following assistance:
2.1 Capital Subsidy: Eligible ESDM units shall be entitled to the following capital
subsidy on reimbursement basis:
(a) ESDM units with GFCI up to Rs. 10 crores shall be entitled to a capital
subsidy at the rate of 10% of the GFCI, subject to a ceiling of Rs. 1 crore.
(b) ESDM units with GFCI above Rs. 10 crores but up to 1000 crores shall be
entitled to a capital subsidy of Rs. 1 crore plus 5% of incremental GFCI
above Rs. 10 crores, subject to an overall ceiling of Rs. 25 crores.
(c) ESDM units with GFCI above Rs. 1000 crores shall be entitled to a capital
subsidy of Rs. 25 crores plus 5% of incremental GFCI above Rs. 1000
crores, subject to an overall ceiling of Rs. 100 crores.
2.2 Interest Subsidy: Eligible ESDM units shall be entitled to avail interest subsidy at
the rate and norms as defined below:
(a) Interest subsidy assistance shall be eligible for a maximum duration of five
years.
(b) Eligible ESDM units will be entitled to interest subsidy assistance from the
date of making application or when actual interest repayment to the
lending financial institutions, after moratorium, if any, begins based on the
choice of ESDM unit. However, the unit will be entitled for interest
assistance only if the interest repayment has begun during the operative
period of the current policy.
(c) ESDM units with borrowings up to Rs. 10 crores shall be entitled to an
interest subsidy at the rate of 7% per annum, subject to a ceiling of Rs. 1
crore per annum.
(d) ESDM units with borrowings above Rs. 10 crores, but up to Rs. 1000 crores
shall be entitled to an interest subsidy of Rs. 1 crore plus 2% of borrowings
in excess of Rs. 10 crores every year, subject to an overall ceiling of Rs. 5
crores per annum.
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(e) ESDM units with borrowings above Rs. 1000 crores shall be entitled to an
interest subsidy of Rs. 5 crores plus 1% of borrowings in excess of Rs. 1000
crores every year, subject to an overall ceiling of Rs. 10 crores per annum.
(f) Interest subsidy as mentioned above shall be given only if the borrowing is
from a bank / financial institution based in India, is in Indian Rupee
denomination and shall not exceed interest liability of eligible unit.
2.3 Reimbursement of Stamp Duty and Registration Fee: Eligible ESDM units will be
entitled for reimbursement of 100% of Stamp Duty and Registration Fee paid to
the Government of Gujarat for lease/sale/transfer of land for the first transaction.
The reimbursement will be made on the commencement of construction.
2.4 VAT/CST/GST Incentive:
(a) The eligible ESDM units will be provided reimbursement of net tax (net of
input credits) paid by them under Section-13 of Gujarat Value Added Tax
Act against their output tax liability. The reimbursement will be limited to
a ceiling of 90% of the GFCI made by the unit. Additional amount of tax
paid, beyond above ceiling, will not be eligible for reimbursement. In no
case, the amount of reimbursement shall exceed the total inflow of tax
paid into the Government of Gujarat treasury. There would be certain
restriction in respect of transfer of goods produced by eligible units out of
state by the subsequent dealers so as to ensure that amount reimbursed is
not again being claimed by way of tax credit for inter-state sale, branch
transfer, consignment and export.
(b) For domestic sales outside Gujarat (inter-state sales), 100% Central Sales
Tax (CST) paid into Government of Gujarat treasury would be reimbursed,
till GST is introduced. The amount of benefit availed under this clause will
also be counted against the ceiling mentioned in sub para (a).
(c) In the GST regime, the SGST will be reimbursed at the tax rate, which will not be
higher than the rate of value added tax of the specified goods as on the date of
announcement of the policy. Notwithstanding anything mentioned in above
clauses, it is stated that under the GST regime, as and when it comes into
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operation, the unit shall be reimbursed up to the extent of GST actually
realized into the Government of Gujarat treasury, net of input credits,
subject to overall ceiling of 90% of GFCI as maximum eligibility for
reimbursement.
(d) VAT/CST/GST reimbursement will be allowed for a period of 10 years from

the date of coming into production of eligible unit subject to ceilings and
limitations indicated in above sub clauses.
2.5 Incentive on Power Tariff and Electricity Duty:

(a) Eligible ESDM units will be given power tariff subsidy at the rate of Re. 1
per unit in the billed amount of the utility as promotional incentive on
reimbursement basis for a period of five years.
(b) Eligible ESDM units will be given 100 % reimbursement for electricity duty
paid for a period of five years from the date of commencement of their
production.
(c) Existing units undertaking expansion/diversification will be entitled for
power tariff subsidy and electricity duty reimbursement only for additional
power consumed, attributable to such expansion/diversification. For
computation of additional power consumed, additional consumption over
average consumption of previous one year before the date of
commencement of production from expansion/diversification will be
considered.
(d) Above assistance will be available to eligible ESDM units on power
purchased from the State electricity distribution companies or power
distribution licensees. The eligible ESDM units either generating power
from its captive power plant or getting electricity through open access will
not be eligible for the incentive.
2.6 Employment Generation Incentive through EPF Contribution: Eligible units will
be given the benefit of reimbursement of the EPF contribution made by them for
their employees for a period of five years subject to overall ceiling of Rs. 1 crore
per annum. This reimbursement would be made subject to the following criteria:
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(a) 100% of EPF amount paid in case of female employees
(b) 75% of EPF amount paid in case of male employees
(c) For existing units or units undertaking expansion/diversification, the
assistance will be available for incremental employee count occurring
during the policy period for a period of five years for each such
incremental count, subject to overall ceiling of Rs. 1 crore per annum. For
this purpose average employee count of previous one year before
commencement of production from expansion/diversification shall be
treated as base employee count and incremental count will be computed
over such base count.
(d) Any eligible ESDM unit getting assistance under this policy will be required
to take minimum one intern for every twenty employees on its payroll
during the period it gets assistance. Said intern(s) will be paid an
honorarium at rates more than that under Minimum Wages Act. This
mechanism of hiring interns will be different from and in addition to the
Scheme of Apprenticeship by Government of India, if applicable. This will
help building a skilled resource base within the country.
2.7 Patent Assistance:
(a) Assistance at the rate of 50%, subject to a ceiling of Rs.2 lakhs per patent
for domestic patents and Rs. 5 lakhs per patent for international patents,
for meeting with the expenditure for obtaining patents will be available to
any ESDM unit/institution.
(b) Total quantum of assistance for obtaining such patents shall be limited to
Rs. 25 lakh for international and Rs. 10 lakhs for domestic patents per
unit/institution.
(c) Fees paid to patent attorney and patent service centre will be eligible
towards cost for assistance.
(d) The assistance will be in the nature of reimbursement.
2.8 Market Development Support
(a) Assistance to eligible MSME units for participation in International Trade

Fairs outside India at the rate of 50% of expenditure towards (i) total rent
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of stall or rent of space and amount paid to organizer towards creation of
stall and on rented space (ii) product literature/ catalogue and (iii) display
material subject to maximum Rs. 2 lakhs. Eligible MSME unit will be
entitled to avail of this assistance maximum two times during the
operative period of this policy. The assistance would be in the nature of
reimbursement. MSME units shall have to apply within three months from
the date of participation for the assistance.
(b) Assistance to Industry Associations for participation in International Trade

Fair as Gujarat Pavilion outside India @ 50% of total rent subject to a
ceiling of Rs. 10 lakhs will be provided. Minimum five industrial unit’s
participation will be necessary as part of group to get this assistance.
Assistance shall be in the form of reimbursement and the association shall
have to apply within three months from the date of such participation.
(c) Viability Gap Support to Industries Associations will be provided for

organizing Seminars / Exhibitions in Gujarat. Maximum Rs.4 lakhs for
national and Rs. 8 lakhs for international Seminar/Exhibition will be
provided under this scheme.
2.9 Support to R&D Institutions: In order to give impetus to the Research and
Development, need-based support will be provided to R&D institutions set up
with the approval of the State Government.
(a) Apart from new R&D institutions, testing facilities, finishing schools, etc.
will also be covered. The assistance will be given up to 60% of the project
cost, excluding land and building, subject to a maximum of Rs 50 lakhs.
(b) Assistance for Contract/Sponsored research work from any industrial unit
/ industry association to recognized R&D Institution / Technical College
approved by AICTE will be considered at 50% of the project cost, excluding
cost of land and building, subject to a maximum of Rs 50 lakhs.
2.10 Quality Certification: Any Gujarat based MSME ESDM unit will be granted
assistance for a maximum of three industry standard quality certifications, at a
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rate of 50% of cost of quality certification within the overall ceiling of Rs. 6 lakhs
in 5 years. The amount of assistance will include:-
(a) Fees charged by certification agency
(b) Consulting fees and training charges
(c) Cost of testing equipment as suggested by BIS and other national or

international quality marks such as WHO, GMP, CE, HACCP.
(d) Calibration charges of equipment
This ‘Quality certification scheme’ will be supplementary to any scheme of Central

Government.
3. Procedure for Making Application and Approval of Assistance: The following

procedure will regulate the expression of interest, making the application by an
applicant and process of approval, communication of approval by the Competent
Authority for approving assistance under this Scheme:
3.1 Expression of Interest for Setting-up of an ESDM unit: A person, company, legal
entity or eligible unit intending to avail assistance under this scheme shall
intimate the Competent Authority in Government by an Expression of Interest
as per Annexure 1 to this scheme.
3.2 Any application received by the State Government in Industries & Mines
Department or in Department of Science and technology or under any of their
subordinate offices, for benefits under t h e Electronics Policy of the State
Government (2014-19), in so far as it pertains to setting up of an ESDM unit or
expansion/diversification thereof, made after 12th Nov 2014 a n d till the
issuance of the policy where the construction has not started on the date of
notification of the policy, in whatever format, will be deemed to be an
application for Expression of Interest under this scheme. Such unit so long as it
begins commercial production during the operative period of the Electronics
policy shall be eligible for assistance under this scheme. For such applications
received after 12.11.2014 and till the notification of the Electronics Policy (2016-
21), where the construction has started, entitlement will be as per the policy of
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12.11.2014 provided other eligibility conditions are met.
3.3 Letter of In-principle Approval: The competent authority, on receipt of the

Expression of Interest for availing assistance under this scheme, shall convey to
the applicant its decision granting in-principle approval along with the
indicative list of eligible assistance or alternatively convey the rejection and
causes in brief thereof, the conditions, time lines that the applicant has to
comply with for availing assistance, the obligations of the applicant as well as of
the competent authority in relation to disbursement of the assistance and
the likely disbursement schedule. The in-principle approval by the competent
authority shall be conveyed in a format as per Annexure 2a, o r 2b, within
one month from the receipt of Expression of Interest as in Para 3.1.
3.4 Communication of in-principle approval doesn't confer any entitlement to the

applicant. The entitlement and actual disbursement of assistance as specified
in the scheme will be an outcome pursuant to a formal application as
prescribed in para 3.6, and in accordance with the decision of the Empowered
committee, subject to fulfillment of conditions specified therein.
3.5 Validity of In-principle Approval: The in-principle approval, conveyed as above

in para 3.3, shall be valid for a period of one year. However, subject to
fulfillment of conditions a and b indicated in Para 4 of Annexure 2a or 2b to
this Scheme and subject to satisfactory reasons for non-fulfillment of
conditions c, d and e of Para 4 of Annexure 2a or 2b to this Scheme, in-
principle approval can be extended by the competent authority for a period of,
at the most one year. After the said period of validity, in-principle approval
shall lapse and the applicant will have no claim for any incentive or benefit
against the Government. However, the applicant will be free to reinitiate the
process by filing an Expression of Interest for setting up or
expansion/diversification of an ESDM unit, R&D Institute, Finishing School, etc.
which will then be treated as a separate and a new application.
3.6 Filing of Formal Application: The applicant shall apply to the Competent
Authority in the application form specified as per Annexure 3. The
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entitlement of the applicant for evaluation of his claim for the assistance
under the Scheme will arise only after filing of this application form along with
the prescribed Annexures. The assistance will be eligible only if the formal
application, as under this para is made during the operative period of the New
Electronics Policy 2016-21.
(a) The Competent Authority will scrutinize the proposal and place it
before the Empowered Committee for a decision on total assistance
eligible to the applicant.
(b) The Empowered Committee may call the applicant for a presentation
or any clarification in relation to either eligible activity or the cost
marked against the Eligible activity, or any of its components.
(c) The Empowered Committee will record its decision as to approval of

eligible assistance in a format as per annexure IV.
3.7 Methodology for Disbursement: Based on the decision of Empowered Committee,

the Competent Authority will convey the final decision on the eligibility of the
applicant for the assistance under the Scheme, the schedule of disbursement and
the contingent progress milestones in format as per Annexure 5a or 5b.
3.7.1 Disbursement schedule will be as follows:

Sr. No Assistance Type Disbursement Schedule Remarks
1. Capital Subsidy On commencement of production as Reimbursement as per

per planned capacity approval
2. Interest Subsidy Quarterly basis on bank certificate for Reimbursement on actuals
realization of due installments of
previous quarter
3. Reimbursement of On Submission of Proof of Stamp Reimbursement on actuals

Stamp Duty/ Duty/Registration fee payment on commencement of
Registration Fee construction
4. Power Tariff and Quarterly on Submission of Proof of Reimbursement on actuals
Electricity Duty payment
5. VAT Incentives Quarterly on Submission of Proof Reimbursement on actuals
6. Employment Quarterly on submission of Proof Reimbursement on actuals

Generation Grant on subject to ceiling
EPF
7. Quality Certification On submission of proof Subject to ceiling
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8. Patent Registration On filing of Patent Subject to ceiling
9. Market Development On submission of claim after the Subject to ceiling
event
10. Assistance for R&D Three Tranches: Subject to ceiling

Institute • 25% on acquisition of land,
approval of building plan
• 50% after expenditure of 60% of
the project cost
• 25% on commissioning of the
R&D Institute
11. R&D/Finishing In 3 tranches : Subject to ceiling
Schools /testing
• 25% on acquisition of land,
facilities
office space and approval of
building plan
the project cost
• 25% on commissioning of the R&D
Institute/Testing facility
12. Contract/Sponsored On submission of proof of Subject to ceiling
research work from completion
ESDM unit/ESDM
Industry Association
14. Viability Gap funding On submission of proof of Subject to ceiling

for exhibitions/ participation
seminars in Gujarat
4. State Level Empowered Committee
(a) For approval of the assistance to MSME ESDM units, the State Level Empowered
Committee (Empowered Committee as referred in the scheme) shall comprise of
the following members:
(i) Industries Commissioner – Chairperson

(ii) MD, GIL - Member
(iii) FA to DST – Member
(iv) JS (IT), Science & Technology Department – Member
(v) Director, Gujarat Electronics Mission – Member Secretary
Till the time, Gujarat Electronics Mission is set up, the Director
(Information Technology), Government of Gujarat shall be the Member
Secretary.
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(b) For approval of the assistance to large ESDM units, the State Level
Empowered Committee (Empowered Committee as referred in the scheme)
shall comprise of the following members:
(i) ACS/PS/Secretary, Department of Science & Technology

(ii) ACS/PS/Secretary, Industries & Mines Department
(iii) Industries Commissioner
(iv) Secretary (Expenditure), Finance Department
(v) M.D. - Gujarat Informatics Ltd.
(vi) Head, State eGovernance Mission Team
(vii) Director, Gujarat Electronics Mission - Member Secretary
The senior of the Secretary in-charges of Department of Science and Technology

or Industries & Mines Department shall Chair the meeting. Till the time, Gujarat
Electronics Mission comes in to being, the Director (Information Technology),
Government of Gujarat shall be the Member Secretary.
5. Competent Authority
For undertaking process for grant of approval and disbursement of assistance, the
following officers in their offices will be competent authorities for the benefits under
this scheme:
(a) MSME ESDM: The General Manager, District Industries Centre
(b) Large ESDM units or R&D centres or Finishing Schools od for Patent Assistance
and Market Development Support: The Director, Gujarat Electronics Mission
6. Interpretation
Any interpretation or clarification under the scheme will be decided by the

Department of Science and Technology and decision thereof would be final and binding
to all.
7. Budgetary Provision
The expenditure on this account shall be made from the grants under the following
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budget head: “Demand no. 89” Major Head 2052, Information Technology Incentive
Plan.
The above Government Resolution issues with the concurrence of Energy &
Petrochemicals Department on the file of even number dated 14-12-2015, of Revenue
Department dated 14-12-2015, of Industries and Mines Department 02-02-2016 and of
Finance Department dated 12-02-2016.
By order and in the name of the Governor of Gujarat,
Sd/-
(Dhananjay Dwivedi)
Secretary to the Government of Gujarat,
Department of Science and Technology
To
1. *Principal Secretary to Hon’ble Governorshri, Raj Bhavan, Gandhinagar.
2. Chief Principal Secretary to Hon’ble Chief Minister.
3. Principal Secretary to Hon’ble Chief Minister.
4. Secretary to Hon’ble Chief Minister.
5. Personal Secretary to Hon’ble Ministers, Government of Gujarat.
6. *Personal Secretary to the Leader of Opposition Party in Gujarat Legislative
Assembly, Gandhinagar.
7. *Deputy Secretary to Chief Secretary, Government of Gujarat.
8. *Registrar, Hon’ble Gujarat High Court, Ahmedabad.
9. *Secretary, Gujarat Vigilance Commission, Gandhinagar.
10. *Secretary, Gujarat Public Service Commission, Ahmedabad.
11. *Secretary, Gujarat Legislature Secretariat, Gandhinagar.
12. *Secretary, Gujarat Civil Service Tribunal, Gandhinagar.
13. All Administrative Departments
14. VC and MD, GIDC, Udyog Bhavan
15. Industries Commissioner, Government of Gujarat
16. All Heads of the Departments
17. All Collectors.
18. Managing Director, Gujarat Informatics Limited
19. Director, Information Technology
20. DDG and SIO, NIC, Gujarat
21. Account General (A&E) Gujarat, Post Box No. 2201, Rajkot.
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22. Account General (A&E) Gujarat, Ahmedabad Branch, Ahmedabad.
23. Account General (Audit-1) Gujarat, MS Building, Ahmedabad.
24. Director, Account & Treasuries, Gujarat State, Gandhinagar
25. Pay & Account Offices, Ahmedabad/Gandhinagar
26. All District Treasury Offices
27. Resident Audit Officer, Ahmedabad/Gandhinagar.
28. Select File.
*By Letter
(Copy of this Resolution can be downloaded from URL: http://dst.gujarat.gov.in)
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Annexure A: Classification of the products covered under this Policy
S. No. Particulars
1. Electronics Manufacturing Services
Fabless Companies providing services related to manufacture of sub-assemblies and parts
2. including integration services to the Original Equipment Manufacturers (OEMs)
3. Electronic Gaming and Electronic Toys, etc.
Telecommunication Equipment and Cellular infrastructure equipment including Base
4. stations, transceivers and associated systems, etc.
Mobile phones, Landline phones, Fixed wireless terminal and Fixed cellular terminals,
5. Telephone answering machines, etc.
6. Information and Broadcasting electronic equipment, including Cable & DTH Set top box, etc.
Computing devices such as Laptops, Desktops, Servers, Storage Media and Tablet PCs,
7. etc.
8. Computer peripherals such as Printer, Mouse, Webcam, Keyboards, Speakers, etc.
9. Medical Electronics
10. Industrial Electronics
11. Automotive Electronics
12. Avionics and Naval/ Maritime Equipment
13. Atomic Electronics
14. Power Electronics, Grid connecting equipment, etc.
15. Consumer Electronics, including Personal Media, Music Players, CD & DVD players, etc.
Communication and Networking devices, Routers, Modems, Devices related to ‘Internet of
16. things’, etc.
17. Strategic electronics, including assembly and components

18. Homeland Security devices
19. Biometric electronic equipment
20. Camera and Imaging Equipment
21. e-Waste Recycling equipment and process
Electronic Testing and measuring instruments, Weighing instruments and microprocessors/
22. controllers and electronic displays, etc.
23. Memory and Memory Devices

24. Office Automation equipment, like Scanner, printers, scanners, etc.
Power backup/ management systems including Invertors, SMPS, UPS and Power
25. Stabilizers, etc.
Electronic ballasts, Electronic energy meters, other electronic Meters, Electronic
26. transformers. Chocks, CILs, Inductors, Electronically-operated vending machines, ATM
Machines, etc.
27. Electronic active/ passive components
28. PCB, its design and manufacturing ecosystem
29. R&D, Prototyping, Testing and Certification
30. Nano Electronics
31. Electronic teaching aids, education equipment, etc.
32. LED Fab, intermediaries and LED products
33. Liquid crystal devices, Electronic display devices including Flat panel display devices, etc.
34. Traffic control equipment
Electronic equipment for Railways, signaling, interlocking systems for railways, LED, Lights,
35. etc.
36. Software services for electronic devices

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37. Solar photovoltaic cell/ modules and panels, systems/devices, Solar lanterns/ lamps
38. Space application for satellites, etc.
S. No. Particulars
Electronic Accessories of various products including mobile phones, automotive,
communication devices, etc., power adaptors/ chargers, Home electronic fixtures like door
39. locking system, door closers, etc., Biometric readers, Smart card readers/writers, RFID
readers/writer, RFID tags & Smart cards turnstiles. Electronically-controlled boom barriers,
etc.
40. All Electronic assembly, sub-assembly, parts, etc.
Vertical/ Products/ Services not included in above list will be referred to a High-Level
41.
Committee (HLC) for eligibility and HLC decision in this regard will be final.
Note
 Entire value chain of all electronics verticals/ products covered under National Policy on
Electronics and related notifications issued by Government of India are also covered
under this policy.
 Value chain includes conceptualization of a Product Idea, Innovation, R&D, Product
Design, Components, Assembly, Testing and Fabrication.
18
Annexure –1:
Application for Expression of Interest for Availing Assistance under Scheme for ESDM
Industry
(to be filled in by person / entity applying)
1. Basic Information
1. Name of the Person Applying

Contact Address
Telephone:
2.
Mobile:
Email:
Identity Proof
3. PAN/ Passport/ Bank Statement with picture/
Aadhaar Card (Any one)
2. Nature of Entity (Please provide as much information as you can)
Type of Entity that will seek assistance under the

Scheme
Proprietorship/ Partnership/
1. (Please attach certified copy of the memorandum Company/ Association
and articles of association or equivalent registration
documents if already done)
Office Address:
Office:
2. Factory:
Tele No. :
Fax No. :
Email:
Registration Details(Enclose Memorandum and
Articles of Association)
Certificate of Incorporation (please provide certified
3.
PAN Number (please provide certified copy)
Service Tax & Central Excise Registration Certificate
(please provide certified copy)
Name, address & contact details of the Directors/
4. Promoters along with the PAN Numbers (Please
provide the CA Certificate showing the shareholding
pattern)
a)
b)
c)
19
Name, designation & contact details of the
5.
Authorized Person
3. Assistance will be sought for: (Please tick mark relevant column)
1. ESDM unit
2. R&D Institution
3. Finishing School
4. Testing Centre
5. ESDM Industry Associations
4. Information for unit Type:
ESDM Unit (New/Expansion)
1. Location
2. Tentative area (land area)
3. Tentative Investment
4. Tentative Employment
R&D Institution / Finishing School / Testing Centre
1. Location
Tentative area of the land where R&D

2. Institute/Incubation centre/Testing facility will be
set up
3. Tentative Project Cost (in Rupees)
Brief Description of the project activity proposed

4. to be undertaken in the R&D Institute/Testing
facility/Incubation centre
ESDM Industry Association
1. Exhibition/Trade Fair name
2. Dates of exhibition/Trade fair
3. Expenditure planned by the association
4. When and how much similar assistance availed in

past under the State Government Schemes
5. Assistance Sought under the scheme
Sr. Assistance type Unit type entitled to Claimed Approximate

No. entitlement amount of
( Yes / No) assistance sought
20
1. Capital Subsidy ESDM units
2. Interest subsidy ESDM units
3. Reimbursement
of stamp duty and
Registration fee -do-
4. Reimbursement of Power
tariff subsidy and
-do-
Electricity duty
5. VAT/CST incentives -do-
6. Employment Generation -do-

grant on EPF
7. Reimbursement of ESDM MSMEs
expenditure on quality
certifications
8. Patent Assistance -do-
9. Market development -do-

support
10. Assistance for R&D/ -do-
Finishing School/testing
facilities
Signature of person making application/ Authorised signatory
21
Annexure – 2a:
Format for Letter of In-principle Approval for Assistance to ESDM units under
the scheme for assistance to ESDM Industry
Date:
To
Ref: 1. Your Expression of Interest dated _
Sub: In-principle approval for Assistance under Scheme of Assistance for MSME/Large ESDM units under the
Electronics Policy
Sir/ Madam,
1. We are pleased to acknowledge your application dated _ seeking assistance for setting
up of an ESDM unit with Registration No. . In future correspondences please quote the
Registration number allotted to you.
2. On behalf of the Government of Gujarat, with reference to your application dated ,
I convey the “in-principle” approval/ refusal for assistance under the Scheme of assistance for
ESDM Industry for your unit/proposed unit at <<location>> with an estimated Investment of
Rs. <<>>.
3. Subject to the adherence to conditions as laid out in para 4 of this letter and subject to
approval by the Empowered Committee, the maximum assistance that you can avail under
the scheme will be as under:
Sr. Assistance type Indicative maximum Remarks

eligible assistance
No.
available as per the
scheme
1. Capital Subsidy
2. Interest subsidy
3. Reimbursement
of Stamp D uty and
Registration Fee
4. Reimbursement of Power tariff
subsidy and Electricity duty
22
5. VAT/CST/GST Incentive
6. Employment Generation grant

on EPF
7. Quality C ertification
8. Patent Assistance
9. Market development support

10. Assistance for R&D/ Finishing
School/testing facilities
11. Contract/Sponsored research
work from ESDM unit/ESDM
12. Viability Gap funding for
exhibitions/ seminars in Gujarat
4. This in-principle approval is valid for a period of one (1) year from the date of issuance of
this letter subject to fulfillment of the following conditions:-
(a) Procurement and having final possession of the land/ physical space.
(b) Financial Closure of the Project – for computing financial closure, the applicant
will be allowed to incorporate eligible assistance from GoI, GoG, under respective
schemes for assistance to ESDM units, along with own equity and debt that the
applicant will take.
(c) Preparation and submission of Detailed Project Report (DPR)
(d) Component/ activity wise implementation schedule specifying the timelines
and corresponding milestones
(e) Submission of application as per para 3.6 of the scheme within 1 year.
5. In case, the above conditions are not met by the end of the validity period of this in-
principle approval, the validity will be extended for an additional period of maximum one
(1) year subject to the fulfillment of the following mandatory conditions, with a satisfactory
justification for the delay of the other conditions mentioned in para 4 above.
(a) Procurement and having final possession of the land.
(b) Financial Closure of the Project
6. Application for extending validity of in-principle approval shall be made before expiry of
one year from grant of in-principle approval In case, the validity period is extended, a
detailed timeline for fulfilling the following conditions should be intimated to the Competent
Authority.
(a) Preparation and submission of DPR
23
(b) Component/ activity wise implementation schedule specifying the timelines
(c) Submission of formal application as per para 3.6 of the Scheme
7. In an instance where the criteria is not met within the validity period, with or without
extension, the in-principle approval shall lapse and the applicant would not have any claim for
any incentive / benefit against the Government. However, you can submit a new Expression
of Interest which would not be linked to the application referenced herein and will be treated
as a new application.
8. You are informed that till the filing of formal application as in Annexure – 3, you can
change the applicant. You are also informed that in relation to the indicative maximum
assistance indicated in Para 3 of this letter, the numbers are indicative only. The actual
eligible amount will depend on scrutiny by the Empowered Committee, the formal
application and supporting documents.
Yours Sincerely,
24
Annexure – 2b:
Format for Letter of In-principle Approval for Assistance to
ESDM R&D institutions/Finishing School/Testing centres under the
scheme of assistance for ESDM Industry
Date:
To
Ref: 1. Your Expression of Interest dated _
Sub: In-principle approval for setting New ESDM R&D Institutes/Incubation Centres/ Testing Centres
under the scheme.
Sir/ Madam,
1. We are pleased to acknowledge your application dated seeking assistance for setting up
of a new R&D Institution/Incubation centre/Testing centre, with Registration No. .
In future correspondences please quote the Registration number allotted to you.
2. On behalf of the Government of Gujarat, with reference to your application dated _, I
convey the “in-principle” approval/ refusal for assistance under the Scheme for setting up R&D
Institution/ Incubation Centre/Testing Centre at <<location>> with an estimated Investment
of Rs.<<>>.
3. Subject to the adherence to conditions as laid out in para 4 of this letter and subject to
approval by the Empowered Committee, the maximum assistance that you can avail under
the scheme will be as under:
Sr. No. Assistance type Indicative maximum eligible Remarks

assistance available as per the
scheme
1. Assistance for R&D/Finishing

School/Testing Facilities
2. Assistance in
contract/sponsored work
from ESDM unit/ESDM
Industrial Association
4. This in-principle approval is valid for a period of one (1) year from the date of issuance of this
letter subject to fulfillment of the following conditions:-
(a) Procurement and having final possession of the land / Office Space
25
(b) Financial Closure of the Project – for computing financial closure, the applicant
will be allowed to incorporate eligible assistance from GoI, GoG, under respective
schemes for assistance to new ESDM R&D Centres/Finishing Schools/Testing centres
along with own equity and debt that the applicant will take.
(c) Preparation and submission of Detailed Project Report (DPR)
(d) Component/ activity wise implementation schedule specifying the timelines
(e) Submission of application as per para 3.6 of the scheme within 1 year.
5. In case, the above conditions are not met by the end of the validity period of this in-
principle approval, the validity will be extended for an additional period of maximum one
(1) year subject to the fulfillment of the following mandatory conditions, with a satisfactory
justification for the delay of the other conditions mentioned in para 4 above.
(a) Procurement and having final possession of the land / Office Space
(b) Financial Closure of the Project
6. Application for extending validity of in-principle approval shall be made before expiry of
one year from grant of in-principle approval In case, the validity period is extended, a
detailed timelines for fulfilling the following conditions should be intimated to the Competent
Authority.
(a) Preparation and submission of DPR
(b) Component/ activity wise implementation schedule specifying the timelines
(c) Submission of formal application as per para 3.6 of the Scheme
7. In an instance where the criteria is not met within the validity period, with or without
extension, the in-principle approval shall lapse and the applicant would not have any claim for
any incentive / benefit against the Government. However, you can submit a new Expression
of Interest which would not be linked to the application referenced herein and will be treated
as a new application.
8. You are informed that till the filing of formal application as in Annexure – 3, you can
change the applicant. . You are also informed that in relation to the indicative maximum
assistance indicated in Para 3 of this letter, the numbers are indicative only. The actual
eligible amount will depend on scrutiny by the Empowered Committee, the formal
application and supporting documents.
Yours Sincerely,
26
Annexure –3a:
Application Form for Availing Assistance for ESDM unit
under the Scheme of Assistance to ESDM Industry
(to be filled in by the applicant)
Application Registration No.
1 Name of the unit

Contact Address
Telephone:
2
Mobile:
Email:
Type of the Entity

3 (Please attach certified copy of the memorandum and Proprietorship/ Partnership/ Company
articles of association or equivalent registration
document or Partnership Deed)
Registration Details (Enclose Memorandum and
4
Service Tax &VAT Registration No. (please provide
certified copy)
TIN No.
Name, address & contact details of the Directors/ Promoters along with the PAN Numbers
(Please provide the CA Certificate showing the shareholding pattern)
Name DIN NO Address Contact No. Email
5
Name, designation & contact details of the Authorized

6
Person (please enclose copy of authorisation letter)
2. Details of Eligible ESDM Unit
1 Location Address
2 Area of the land / Office Space
3 Proof of Land Possession
(Copy of village record and map may please be
enclosed)
4 Brief Description of the project
5 Please enclose detailed project report covering
Sections on Market Survey, Competitive Landscape,
Revenue / Expenditure Projections, Cash flows, etc.
27
6 Proposed Gross Fixed Capital Investment (excluding
land)
7 Investment in Land
8 Proposed borrowing for which interest subsidy sought
9 Name of lending Bank/Financial Institution
10 Projects of Business Development & Recruitment Schedule

Turnover (Rs.) Year 1 Year2 Year3 Year4 Year5 Year6
Domestic
Exports
Employees (nos.)
3. Financials of the Project
Component Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
1. Revenue Forecast
2. Expenditure Forecast
3. Net Profits
4. Cash flows from business
operations
4. Means of Financing the Project
Promoters Equity Contribution

Total Project Cost
Others’ equity contribution
Expected GoG Assistance
Expected assistance from other Government
organisations
Debt/Borrowing (Please include Loan
Sanction Letter) *
Total (Rs.)
Sr. Assistance type Eligible Assistance claimed Remarks

No. expenditure /
Projected
expenditure
1. Capital Subsidy
2. Interest subsidy*
3. Reimbursement
of Stamp D uty and
Registration Fee
28
4. Reimbursement of
Power tariff subsidy
and Electricity duty
5. VAT/CST/GST Incentive
6. Employment
Generation grant on
EPF
7. Quality C ertification
8. Patent Assistance
9. Market development
support
10. Assistance for R&D/
Finishing School/testing
facilities
11. Contract/Sponsored
research work from
ESDM unit/ESDM
12. Viability Gap funding for
exhibitions/ seminars in
Gujarat
* Interest subsidy shall be given only if the borrowing is from a bank/financial institution in India, is
in Indian Rupee denomination.
6. Bank Account Details

1. Name and address of Bank where account exists
2. Bank Account Number
3. IFSC Code
4. RTGS Details
7. Declaration:
I, on behalf of my organisation, hereby declare the following:

(a) Information, statements & other papers given herein are to the best of my knowledge
& belief, true and correct in all particulars.
(b) We are not availing any assistance under any other scheme/policy of Government of
Gujarat departments or its subordinate offices.
(c) I am duly authorized to sign an application and details and documents submitted in this
application.
(d) We will hire one intern for every twenty employees on our payroll during the period
we avail benefits under the scheme.
Authorised Signatory
29
Note:
1. Any financial transactions / expenditure statements forecast submitted by the applicant must
be signed by the authorized signatory of the applicant and be certified by the auditor/
chartered accountant.
2. The DPR should have detailed sections covering at least the following :
a) Company profile
b) Promoters list
c) Shareholding pattern
d) Market survey/competitive landscape
e) Business development projections
f) Product details
g) Revenue/Expenditure projections
h) Cash flows from Business operations
i) Means of financing the project
30
Annexure –3b:
Application Form for Availing Assistance to
ESDM R&D Institute/Finishing School/Testing centres under the Scheme of Assistance to
ESDM Industry
1 Name of the unit

Contact Address
Telephone:
2
Mobile:
Email:
Type of the Entity
3 (Please attach certified copy of the memorandum and Proprietorship/ Partnership/ Company
articles of association or equivalent registration
document or Partnership Deed)
4
Service Tax &VAT Registration No. (please provide
certified copy)
TIN No.
Name, address & contact details of the Directors/ Promoters along with the DIN/PAN
Numbers (Please provide the CA Certificate showing the shareholding pattern)
Name DIN /PAN No. Address Contact No. Email
5
Name, designation & contact details of the Authorized

6
Person (please enclose copy of authorisation letter)
2. Details of Proposed ESDM R&D Institute/Incubation centre/Testing centre
1 Location Address
2 Finalised area of the land / Office Space where
R&D Institute/ Incubation centre/Testing centre
3 Proof of Land / Office Space Possession
(Relevant revenue records and maps may please be
enclosed)
31
4 Brief Description of the activities undertaken so far
by the applicant since the in-principle approval for
setting up the ESDM R&D Institute/Incubation
centre/Testing centre
5 Please enclose detailed project report of the
Proposed Project
3. Project Cost
S No Project Component Cost

4.
5.
6.
Promoters Contribution
Total Project Cost
Expected Assistance from other Government
organisations
Debt/Borrowing (Please include Loan
Sanction Letter)
Total (Rs)
Sr. Assistance type Eligible Assistance claimed Remarks

No. expenditure /
Projected
expenditure
1. Assistance in
R&D/Incubation
centres/testing facilities
2. Assistance in
contract/sponsored
work from ESDM
unit/ESDM Industrial
1. Name and address of bank where account exists

3. IFSC Code
4. RTGS Details
7. Declaration:
32
I hereby declare that the information, statements & other papers given herein are to the best
of my knowledge & belief, true and correct in all particulars. I also declare that I am not
availing any other similar assistance from Government of Gujarat Departments or any of its
Organisation.
I also declare that I am duly authorized to sign an application and details and documents
submitted in this application.
Note:
1. Any financial transactions / expenditure statements forecast submitted by the applicant must
be signed by the authorized signatory of the applicant and be certified by the auditor/
chartered accountant.
2. The DPR should have detailed sections covering at least the following :
a) Company profile
b) Promoters list
c) Shareholding pattern
d) Market survey/competitive landscape
e) Business development projections
f) Product details
g) Revenue/Expenditure projections
h) Cash flows from Business operations
33
Annexure – 4:
Format for Recording Minutes of Empowered Committee
Name of Unit
Assistance Sought
Type of Assistance Approximate Amount Remarks

Sr. No
of Assistance
Descriptive Background (As proposed by Competent Authority for meeting)
Discussion Part of Minutes, by Empowered Committee
Approval Granted by Empowered Committee
Type of Assistance Maximum eligible amount Remarks

Sr. No
of Assistance approved
34
Conditions for Disbursement
Signatures of Members of Empowered committee
35
Annexure 5a:
Final Approval Letter Format
Date:
To
Ref: 1. Application Registration No.
Sub: In-principle approval for Assistance under Scheme of Assistance for ESDM Industry
Sir/ Madam,
1. This is to convey the approval/ refusal of assistance under the Scheme of assistance for ESDM
Industry for your unit/proposed unit at <<location>> with an estimated Investment of Rs. <<>>.
2. You are conveyed approval of financial assistance as per the table below, subject to fulfillment
of conditions in para 3 of this letter
Sr. No. Assistance type Maximum eligible Disbursement schedule

assistance Amount
1. Capital Subsidy On commencement of production as

per planned capacity
2. Interest Subsidy Quarterly basis on bank certificate for
realization of due installments of
previous quarter
3. Reimbursement of Stamp On Submission of Proof of Stamp
Duty/ Registration Fee Duty/Registration fee payment
4. Power Tariff and Electricity Quarterly on Submission of Proof of

Duty Exemption payment
5. VAT/CST/GST Incentive Quarterly on Submission of Proof
6. Employment Generation Quarterly on submission of Proof
Grant on EPF
7 Quality Certification On submission of proof
8 Patent Assistance On filing of Patent

9 Market Development On submission of claim after the event
by ESDM unit or Association
36
10 Assistance for R&D Three Tranches:
Institute / Finishing School • 25% on acquisition of land,
/ Testing Facility approval of building plan
the project cost
• 25% on commissioning
11 Contract/Sponsored On submission of proof of completion
research work from ESDM
unit/ESDM Industry
12 Viability Gap funding for On submission of proof of expenditure
exhibitions/ seminars in by an recognized association
Gujarat
3. Conditions to avail the incentives under this scheme :

(a) Stamp duty /Registration fees/EPF contribution/Electricity duty shall be reimbursed on a
quarterly basis subject to submission of proof on actual basis.
(b) Interest subsidy/VAT reimbursement shall be reimbursed on quarterly basis subject to
submission of proof of payment and subject to the maximum limit specified in the scheme.
(c) In no case, the amount of reimbursement shall exceed the total inflow of the tax paid into
the government treasury. Incentive to multiple units in a single supply chain (downstream or
upstream units/ trades) will not be allowed i.e. if a supply has been considered for tax
incentives for a unit the same supply should not lead to incentive for an upstream or
downstream unit. There would be certain restriction in respect of transfer of goods
produced by eligible units out of State by the subsequent dealers so as to ensure that
amount reimbursed is not again being claimed by way of tax credit for inter-state sale,
branch transfer, consignment and export.
(d) In the GST regime, the SGST will be reimbursed at the tax rate, which will not be higher
than the rate of value added tax of the specified goods as on the date of announcement of
the policy. Notwithstanding anything mentioned in above clauses, it is stated that under the
GST regime, the unit shall be reimbursed up to the extent of SGST Paid in intrastate sale of
the specified goods subject to the tax actual realized into the treasury.
(e) Assistance for Technology acquisition/Patent registration/Market Development
support/Quality certifications shall be given subject to incurring of the expenditure and on
production of vouchers, audited statement of accounts, subject to the limits prescribed
in the scheme.
(f) For Industry Associations for participation in International Trade fairs as Gujarat Pavilion
outside India a minimum of 5 Industrial units' participation is necessary to get the
assistance.
(g) In accordance with the clause no. 2.12(b) of the policy, you will hire interns at the rate of
minimum one intern for every 20 employees on your payroll.
37
(h) All assistance is subject to condition that the unit will begin its commercial operations during
the operative period of the policy. Failing which, all assistance, including reimbursements,
subsidy, etc., shall be recovered along with 12% interest per annum.
I wish you best of luck with the Project. Should you have any difficulty or have queries, Mr. will be
your personal contact. He can be reached at .
Yours Sincerely
38
Annexure 5b: Final Approval Letter Format
Date: To
Sub: In-principle approval for assistance to ESDM R&D Institutes/Incubation Centres/ Testing Centres
under the scheme.
Sir/ Madam,
1. This is to convey the approval/ refusal of assistance under the Scheme of assistance for ESDM
Industry for your proposed ESDM R&D Institute/Finishing School/Testing Centre at <<location>>
with an estimated Investment of Rs. <<>>.
2. You are conveyed approval of financial assistance as per the table below, subject to fulfillment of
conditions in para 3 of this letter.
Sr. Assistance Type Maximum eligible Disbursement Remarks

No assistance Amount schedule
1. Assistance for R&D Three Tranches:

Institute/Finishing
*25% on acquisition
School/Testing Centre
of land, office space,
approval of building
plan
*50% after
expenditure of 60%
of the project cost
*25% on
commissioning of
the R&D Institute
2. Contract/Sponsored On submission of
research work from proof of completion
ESDM unit/ESDM
39
3. Conditions to avail the incentives under this scheme :
(a) Stamp duty /Registration fees/EPF contribution/Electricity duty shall be reimbursed on a

quarterly basis subject to submission of proof on actual basis.
(b) Interest subsidy shall be reimbursed on quarterly basis subject to submission of proof of
payment and subject to the maximum limit specified in the scheme.
(c) Assistance for Technology acquisition/Patent registration/Quality certifications shall be
given subject to incurring of such expenditure and on production of vouchers, audited
statement of accounts, subject to the limits prescribed in the scheme.
I wish you best of luck with the Project. Should you have any difficulty or have queries Mr. _ will
be your personal contact. He can be reached at .
Yours Sincerely
40
Scheme of Assistance for Development
of EMCs under Electronics Policy
(2016-21)
Government of Gujarat
Science and Technology Department
G.R. No: EHM/10/2011/276392/IT
Sachivalaya, Gandhinagar
Date: 29th February 2016.
RESOLUTION
Read: Electronics Policy (2016-21) dated 29.02.2016
Preamble
Electronics System Design and Manufacturing (ESDM) is one of the largest and
fastest growing manufacturing sectors in the world. The Government of India (GoI) has,
through its National Policy on Electronics, 2012, contemplated that the demand for
electronic goods in India will rise to USD 400 billion by the end of the year 2020. The
policy has further contemplated domestic demand and production gap of nearly USD
300 billion by 2020.
2. With a view to provide focussed attention on boosting manufacturing through
increased investment in setting up of ESDM, the Government of India has come up with
National Policy on Electronics in the year 2012 which has been subsequently revised
from time to time. Under the provisions of National Policy on Electronics, 2012, the GoI
has issued Schemes and Implementation Guidelines for M-SIPS, Electronics
Manufacturing Clusters (EMCs), etc.
3. In the context of National Electronics Policy and associated emphasis on setting

up of Electronics Manufacturing industry in the country, the Government of Gujarat, with
a view to providing focused attention on the subject came out with the Electronics Policy
for the State of Gujarat (2014-2019) which was notified on 12th November, 2014.
4. Since the notification of Electronics Policy by the State Government, the

Government of India has further emphasized the core importance of the sector by
focusing on creating facilities for electronics manufacturing within the country through
policy revisions. Accordingly, the Government of India has revised M-SIPS Policy and
brought in new verticals, simplified approval process, revised threshold for various
industry units and has made policy more attractive by introducing production subsidy,
etc.
5. As the Government of India undertook two major campaigns – National Skill

Development Mission and Make in India Campaign – it also acknowledged the pivotal
role that Electronics Manufacturing Industry can play in economic growth as well as
employment creation. The Department of Electronics and Information Technology
(DeitY), Government of India estimates that with an electronics manufacturing industry
of USD 400 billion direct employment creation of 28 million positions is possible. It has
also acknowledged that electronics manufacturing can give a boost to the overall
manufacturing sector thus playing a central role in creating right ecosystem to realize
benefits of huge demographic dividend that India boasts of.
6. Consistent with above considerations, various State Governments have also

either come out with de novo electronics policy or have revamped their existing
electronics policy.
7. The Electronics Policy of Gujarat, notified in 2014 was cast in overall context of
Industrial environment existing in Gujarat. Though Gujarat continues to hold flag
position in overall manufacturing sector in the country, the nature of electronics
manufacturing sector and evolving technology trends therein position it very differently
from other sectors of industry and therefore, require that incentive structure for
promoting electronics manufacturing is crafted differently compared to the ones done for
other sectors of the industry.
8. In the above background, to ensure that Gujarat positions itself competitively for
attracting investments in electronics manufacturing, to benefit from the investment as
well as the employment generation and to play a proactive, responsible and lead role in
matters of national importance, it became necessary to revisit the provisions of the
electronics policy for the State of Gujarat announced in 2014 and to come out with this
Electronics Policy (2016 – 21).
9. The policy referred to above lists out the role of the State Government in creating
an enabling environment and provides for different incentives that EMC and ESDM units
getting setup or expanded to in Gujarat are entitled to. The objective of formulating a
scheme to list out procedure as well as approval mechanism to operationalize the policy
in relation to providing assistance for the setting up of Electronics Manufacturing
Clusters was under the consideration of the Government. In consideration thereof, the
Government of Gujarat resolves as under:
Resolution
In view of the strategy, approach, specified incentives under the Electronics

Policy (2016-21) (referred herein under as the “Electronics Policy”), the Government of
Gujarat is pleased to introduce a scheme of “assistance for the development of EMC”
which will come into force from the date of issuance of this Government Resolution and
will remain in operation till the operative period of the Electronics Policy (2016-21).
1. Definitions
1.1. All the definitions as specified under the Electronics Policy shall have the
meaning as specified therein.
1.2. ‘ESDM units’ shall imply the definition as assigned to such under the
referenced policy, and in addition, will also include type of sectors or
industries which are listed in Annexure 5 to the Guidelines for the
Operations of the M-SIPS dated 07th Oct 2012 issued by GoI as amended
from time to time.
1.3. ‘EMC’ reference to the word EMC shall imply either Greenfield EMC or
Brownfield EMC.
1.4. ‘Greenfield EMC’ shall have the meanings as assigned under the GoI
Notification No. 8(50)/2011-IPHW dated 22nd October, 2012, as amended
from time to time.
1.5. ‘Eligible Activities’ means the activities as listed out in the Annexure VI
to this Scheme.
1.6. ‘Applicant’ under this Scheme for assistance shall be a legal entity
registered under the Companies Act 2013 intending to setup Greenfield
EMC. In addition, Boards and Corporations set up by Government or its
entities will also be eligible to be considered as an ‘Applicant’ for the
purposes of this Scheme.
1.7. ‘Empowered Committee’ shall have the meaning as defined in para 4 of
this GR.
1.8. ‘Competent Authority’ shall have the meaning as defined in para 5 of
this GR.
1.9. ‘Project Cost’ means the total cost of implementation of the project for
which the financial assistance is sought under the scheme as per the
application. For purposes of calculating the project cost, the cost of land,
and of buildings of individual units shall not be considered.
1.10. ‘Processing Area’ means an area within the EMC, wherein ESDM units,
common facilities and physical infrastructure, as result of activities listed
out in Annexure – VI to this GR, would be located.
2. Available Assistance:
2.1. The assistance under the scheme shall be available to applicants, for the
purposes of eligible activities as specified above in relation to the
development of EMC. Provided that for the project to be eligible for
assistance, processing area in EMC, in area terms, shall not be less than
80% of the total area of EMC and 60% of processing area has to be
allotted to ESDM units.
2.2. The assistance provided under the scheme shall be in addition to the
assistance provided by the Government of India or by any other Institution
not belonging to Government of Gujarat or any of its legal entity.
2.3. Capital Assistance

(a) Greenfield EMCs which are set up in an area less than 200
acres shall be entitled to an assistance of 25% of the eligible
project cost subject to a ceiling of Rs. 25 crores.
(b) Greenfield EMCs which are set up in an area of more than
200 acres will be entitled to an assistance of 25% of eligible
project cost subject to a ceiling of Rs. 100 crores.
(c) In respect of Greenfield EMCs, the assistance mentioned at
para (a) and (b) above shall be subject to minimum promoter
contribution equal to assistance by Government of Gujarat
towards the eligible project cost.
2.4. Stamp Duty and Registration Fee Reimbursement: Developers of
Greenfield EMCs will be entitled to 100% reimbursement of the stamp
duty as well as registration fee paid by them to the Government of Gujarat,
towards lease/sale/transfer of land for the EMC.
2.5. Uninterrupted Availability of Power and Power Tariff Subsidy to

EMCs:
(a) With a view to provide uninterrupted and good quality power supply
to the EMCs, the Government would provide necessary feeder or a
sub-station on need basis. For setting up of such feeder / sub-
station, Government will contribute towards the cost of such,
subject to a ceiling of Rs. 5 crores.
(b) EMCs will be given power tariff subsidy at Re. 1 per unit in the
billed amount for a period of five years as promotional incentive on
reimbursement basis.
(c) EMCs purchasing electricity from the state electricity / power
distribution licensee will only be eligible for this subsidy. EMCs
either generating power from their captive power plants or getting
electricity through open access will not be eligible for this subsidy.
(d) EMC will be given 100% reimbursement for electricity duty paid by
it for a period of 5 years from the date of approval of EMC.
3. Procedure for Making Application and Approval of Assistance: The following

procedure will regulate the expression of interest, making the application by an
applicant and process of approval, communication of approval by the Competent
Authority for approving assistance under this Scheme:
3.1. Expression of Interest for Setting-up of EMC: A person intending to

promote setting up of EMC or an applicant intending to avail assistance
under this scheme shall intimate the Competent Authority in Government
by an Expression of Interest as per Annexure-I to this scheme.
3.2. Any application received by the Government in Industries & Mines

Department or in Department of Science and Technology, or under any of
their subordinate offices, for benefits under the Electronics Policy of the
State Government (2014-19), in so far as it pertains to setting up of EMC,
made after 12th Nov 2014 till the issuance of this Scheme, in whatever
format, will be deemed to be an application for Expression of Interest
under this scheme.
3.3. Letter of In-principle Approval: The competent authority, on receipt of

the Expression of Interest for availing assistance for setting up of EMC,
shall convey to the applicant its decision granting in-principle approval
along with the indicative list of eligible assistance or alternatively convey
the rejection and causes in brief thereof, the conditions, time lines that the
applicant has to comply with for availing assistance, the obligations of the
applicant as well as of the competent authority in relation to disbursement
of the assistance and the likely disbursement schedule. The in-principle
approval by the competent authority shall be conveyed in a format as per
Annexure-II, within one month from the receipt of Expression of Interest as
in para 3.1. Communication of in-principle approval doesn’t confer any
entitlement to the applicant. Entitlement and actual disbursal of the
assistance as specified in the scheme will be an outcome pursuant to
formal application in format as in para 3.5, and in accordance with
decision of the empowered committee subject to fulfillment of conditions
specified therein.
3.4. Validity of In-principle Approval: The in-principle approval, conveyed as

above in para 3.3, shall be valid for a period of one year. However, subject
to fulfillment of conditions (a), (b) and (c) as indicated in para 4 of
Annexure-II to this Scheme and subject to satisfactory reasons for non-
fulfillment of conditions (d), (e) and (f) as indicated in para 3 of Annexure –
II to this Scheme, in-principle approval can be extended by the competent
authority for a period of, at the most one year. After the said period of
validity, in-principle approval shall lapse and the applicant will have no
claim for any incentive or benefit against the Government. However, the
applicant will be free to reinitiate process by filing a fresh intention for
setting up of EMC which will be treated as a separate and a new
application.
3.5. Filing of Formal Application: The applicant shall apply to the
Competent Authority in the application form specified as per Annexure –
III. The entitlement of the applicant for evaluation of his claim for the
assistance under the scheme will arise only after filing of this application
form along with the prescribed Annexures.
(a) The Competent Authority will scrutinize the proposal and place it
before the Empowered Committee for a decision on total
assistance eligible to the applicant.
(b) The Empowered Committee may call the applicant for a

presentation or any clarification in relation to either eligible activity
or the cost marked against the Eligible activity, or any of its
components.
(c) The Empowered Committee will record its decision as to approval

of eligible assistance in a format as placed at Annexure –IV.
3.6. Methodology for Disbursement: Based on the decision of Empowered

Committee, the Competent Authority will convey the final decision on the
eligibility of the applicant for the assistance under the Scheme, the
schedule of disbursement and the contingent progress milestones in
format as per Annexure – V. The disbursement will be in three tranches as
per following schedule:
(a) Advance release of 25% of eligible assistance by the Competent

Authority subject to availability of whole area of EMC, approval of
site layout plan and approval of Pollution Control Board, if required.
(b) Second tranche of 50% of eligible assistance will be disbursed after

the applicant has already incurred expenditure of 60% of the
eligible project cost in eligible activities.
(c) The third and final tranche of the assistance amounting to 25% of
eligible assistance will be paid when the applicant has incurred
expenditure of 100% of the eligible project cost.
3.7. Provision for electricity feeder or sub-station on need basis, will be made
by the Government when the applicant has already incurred the
expenditure of 50% of the project cost. Any cost of such feeder/sub-
station, in excess of Rs. 5 crore shall be deposited by the applicant or will
be adjusted against the second or third tranche of eligible assistance.
3.8. Reimbursement of Stamp Duty and Registration Fee will be made to an

applicant along with advance release in para 3.6.(a).
3.9. Reimbursement of Electricity duty and benefit under power tariff subsidy
will be made quarterly on production of proof of payment of the same.
4. State Level Empowered Committee

For approval of the assistance to EMCs under this Scheme, the State Level
Empowered Committee (Empowered Committee as referred in the scheme)
comprising of the following members is constituted:
(i) Chief Secretary – Chairman
(ii) Additional Chief Secretary, Finance Department – Member
(iii) ACS/PS, Industries & Mines Department – Member
(iv) ACS/PS, Revenue - Member
(v) Principal Secretary, Energy & Petrochemicals Department – Member
(vi) Secretary, Science & Technology Department – Member
(vii) Industries Commissioner – Member
(viii) Director, Gujarat Electronics Mission – Member Secretary
Till the time, Gujarat Electronics Mission is set up, the Director (Information
Technology), Government of Gujarat shall be the Member Secretary.
5. Competent Authority
The Competent Authority for undertaking process for the grant of approval and
disbursement of assistance will be the Director, Gujarat Electronics Mission
(GEM). Till the time, Gujarat Electronics Mission is set up, the Director
(Information Technology), Government of Gujarat, will function as the Competent
Authority. The competent authority will act as single window competent authority
as referred to under the Electronics Policy.
6. Interpretation
Any interpretation or clarification under the scheme will be decided by the
Department of Science and Technology and decision thereof would be final and
binding to all.
7. Budgetary Provision
The expenditure on this account shall be made from the grants under the
following budget head: “Demand no. 89” Major Head 2052, Information
Technology Incentive Plan.
The above Government Resolution issues with the concurrence of Energy &
Petrochemicals Department on the file of even number dated 14-12-2015, of Revenue
Department dated 14-12-2015, of Industries and Mines Department dated 02-02-2016,
and of Finance Department dated 12-02-2016.
By order and in the name of the Governor of Gujarat,
Sd/-
(Dhananjay Dwivedi)
Secretary to the Government of Gujarat,
Department of Science and Technology.
To
1. *Principal Secretary to Hon’ble Governorshri, Raj Bhavan, Gandhinagar.
2. Chief Principal Secretary to Hon’ble Chief Minister.
3. Principal Secretary to Hon’ble Chief Minister.
4. Secretary to Hon’ble Chief Minister.
5. Personal Secretary to Hon’ble Ministers, Government of Gujarat.
6. *Personal Secretary to the Leader of Opposition Party in Gujarat Legislative
Assembly, Gandhinagar.
7. *Deputy Secretary to Chief Secretary, Government of Gujarat.
8. *Registrar, Hon’ble Gujarat High Court, Ahmedabad.
9. *Secretary, Gujarat Vigilance Commission, Gandhinagar.
10. *Secretary, Gujarat Public Service Commission, Ahmedabad.
11. *Secretary, Gujarat Legislature Secretariat, Gandhinagar.
12. *Secretary, Gujarat Civil Service Tribunal, Gandhinagar.
13. All Administrative Departments
14. VC and MD, GIDC, Udyog Bhavan
15. Industries Commissioner, Government of Gujarat
16. All Heads of the Departments
17. All Collectors.
18. Managing Director, Gujarat Informatics Limited
19. Director, Information Technology
20. DDG and SIO, NIC, Gujarat
21. Account General (A&E) Gujarat, Post Box No. 2201, Rajkot.
22. Account General (A&E) Gujarat, Ahmedabad Branch, Ahmedabad.
23. Account General (Audit-1) Gujarat, MS Building, Ahmedabad.
24. Director, Account & Treasuries, Gujarat State, Gandhinagar
25. Pay & Account Offices, Ahmedabad/Gandhinagar
26. All District Treasury Offices
27. Resident Audit Officer, Ahmedabad/Gandhinagar.
28. Select File.
*By Letter
(Copy of this Resolution can be downloaded from URL: http://dst.gujarat.gov.in)
Annexure – I:
Application for Expression of Interest
(to be filled in by person / entity applying)
(a) Name of the Person Applying

Contact Address
Telephone:
(b)
Mobile:
Email:
Identity Proof
(c) PAN/ Passport/ Bank Statement with picture/
Aadhaar Card (Any one)
2. Nature of Entity (Please provide as much information as you can)
Type of Entity that will set up EMC

(Please attach certified copy of the Proprietorship/ partnership/
(a) memorandum and articles of association or company/ Govt. owned Boards
equivalent registration documents if already & Corporations
done)
Office Address:
Office:
Factory:
(b)
Tele No. :
Fax No. :
Email:
Certificate of Incorporation (please provide
(c) certified copy)
Service Tax & Central Excise Certificate (please
provide certified copy)
Name, address & contact details of the
Directors/ Promotors along with the PAN
(d)
Numbers (Please provide the CA Certificate
showing the shareholding pattern)
a)
b)
c)
(e)
Authorized Person
3. Details of Proposed Electronics Manufacturing Cluster
(a) Location
District
Taluk
Village
(b) Tentative area of the land over which EMC
will be set up
(c) Tentative Project Cost (in Rupees) (excluding
land)
(d) Brief Description of the activities undertaken
so far by the applicant for setting up the EMC
and for bringing ESDM units in the proposed
EMC
(a) Capital Subsidy (Amount in Rupees)
(b) Stamp Duty/ Registration Fee
Reimbursement
(c) Feeder or Sub-station Requirement
(d) Power Tariff and Electricity Duty
Reimbursement
Signature of person making
application / Authorised Signatory of applicant

Annexure – II:
Format for Letter of In-principle Approval
Date:
To
__________________________
__________________________
__________________________
__________________________
Ref: 1. Your Expression of Interest dated __________________
Sub: In-principle approval for Electronics Manufacturing Cluster Proposed at ___________________.

Sir/ Madam,
1. Please acknowledge registration no. for your application is ______. In future correspondences
please quote this number.
2. On behalf of the Government of Gujarat, I convey the “in-principle” approval/ refusal with
reference to your application for development of Electronics Manufacturing Cluster (EMC) at
<<location>> with an estimated project cost of Rs. << >>.
3. Subject to the adherence to conditions as laid out in para 4 of this letter and subject to approval
by the Empowered Committee, the maximum assistance that you can avail under the scheme
will be as under:
(a) Capital subsidy: Rs._______ or 25% of Project Cost, whichever is lower
(b) Electricity Feeder / Sub-station at _______________ to be set up by Government on
your behalf with Government contribution limited to Rs. 5 crores.
(c) Stamp Duty/ Registration Fee Reimbursement: on actual basis.
(d) Power Tariff and Electricity Duty Reimbursement: on actual basis.
4. This in-principle approval is valid for a period of one (1) year from the date of issuance of this
letter subject to fulfillment of the following conditions:-
(a) Procurement and having final possession of the land
(b) Formation of SPV
(c) Financial Closure of the Project – for computing financial closure, the applicant will be
allowed to incorporate eligible assistance from GoI, GoG, under respective schemes for
assistance to EMCs, and expected proceeds of user/ service charges to be collected from
ESDM units, along with own equity and debt that the applicant will take.
(d) Preparation and submission of Detailed Project Report (DPR), detailed drawings and
designs of the works along with their cost estimates
(e) Component/ activity wise implementation schedule specifying the timelines and
corresponding milestones
(f) Submission of application as per para 3.5 of the scheme within 1 year.
5. In case, the above conditions are not met by the end of the validity period of this in-principle
approval, the validity may be extended by an additional period of up to one year subject to
fulfillment of the mandatory conditions in sub para (a), (b), (c), with a satisfactory justification
for the delay of other conditions mentioned in para 4 above.
6. Application for extending validity of in-principle approval shall be made before expiry of one
year from grant of in-principle approval In case, the validity period is extended, a detailed
timelines for fulfilling the following conditions should be intimated to the Competent Authority.
a. Preparation and submission of DPR, detailed drawings and designs of the works along
with their cost estimates
b. Component/ activity wise implementation schedule specifying the timelines and
corresponding milestones
c. Submission of formal application as per para 3.5 of the Scheme
7. In an instance where the criteria is not met within the validity period, with or without extension,
the in-principle approval shall lapse and the applicant would not have any claim for any
incentive / benefit against the Government. However, you can submit a new Expression of
Interest which would not be linked to the application referenced herein and will be treated as a
new application.
8. You are informed that till the filing of formal application as in Annexure – III, you can change the
applicant.
Yours Sincerely,
Annexure –III:
Application Form for Availing Assistance under the Scheme of Assistance for Development of
Electronics Manufacturing Cluster (EMC)
1. Name of the Applicant

Contact Address
Telephone:
2.
Mobile:
Email:
Certificate of Incorporation (please provide
3. certified copy)
Service Tax & Central Excise Certificate (please
provide certified copy)
Type of the Entity
Proprietorship/ partnership/
4. (Please attach certified copy of the company/ Boards or
memorandum and articles of association or Corporations of the Government
equivalent registration document)
Name, address & contact details of the Directors/ Promotors along with the PAN
Numbers (Please provide the CA Certificate showing the shareholding pattern)
Name DIN NO Address Contact No. Email
5.

6. Authorized Person (please enclose copy of
authorisation letter)
2. Details of Proposed Electronics Manufacturing Cluster
1. Location
District
Taluk
Village
Village Wise list of survey numbers and
corresponding areas, ownership details
along with the map marking the site.
2. Finalised area of the land over which
EMC will be set up in acres.
3. Proof of Land Possession (attach copies
of relevant revenue records)
4. Brief Description of the activities
undertaken so far by the applicant since
the in-principle approval for setting up
the EMC and for bringing ESDM units in
the proposed EMC
5. Please enclose detailed project report of
the Proposed EMC
3. Project Components & Cost

(a) Total Project Cost:
(b) Eligible Project Cost: (Please indicate cost components corresponding to eligible items
mentioned in annexure VI only)
S No Project Component Cost

1.
2.
3.
Total
Promotors Contribution
Total Project
Contribution from Units
Cost
Anticipated GoI Grant-in-
aid/Assistance
Debt/Borrowing (Please include
Loan Sanction Letter)
Total
1. Financial Assistance (Amount in Rupees)
2. Stamp Duty/ Registration Fee
Reimbursement (Please include the
documentary evidence of payments)
3. Feeder / substation for Electricity Supply:
KVA/MVA Rating Location at ______
(DPR should cover a section on Power
requirement assessment)
4. Power Tariff and Electricity Duty
Reimbursement
1. Name and address of Bank where
account is kept
3. IFSC Code
4. RTGS Details
7. Declaration:
I hereby declare that the information, statements & other papers given herein are to the
best of my knowledge & belief, true and correct in all particulars. I also declare that for
the Project of setting up EMC, I am not availing any other assistance from Government
of Gujarat Departments or any of its Organisation.
I also declare that I am duly authorized to sign an application and details and
documents submitted in this application.
Note:
Any financial transactions / expenditure statements forecast submitted by the applicant

must be signed by the authorized signatory of the applicant and be certified by the
auditor/ chartered accountant.
Annexure – IV:
Format for Recording Minutes of Empowered Committee
Application Reference
No.
Applicant
Assistance Sought
Type of Assistance Approximate Amount of Remarks

Sr. No
Assistance
Background Note (As proposed by Competent Authority for meeting)
Discussion Part of Minutes, by Empowered Committee

Approval Granted by Empowered Committee
Type of Assistance Maximum Eligible Amount Remarks

Sr. No
of Assistance
1. Capital Subsidy
2. Stamp Duty Reimbursement
Registration Fee
3.
Reimbursement
4. Feeder / Substation Assistance
Power Tariff and Electricity

5.
Duty Reimbursement
Conditions for Disbursement (Assistance Type-wise)

Signatories
( ) ( ) (
)
( ) ( ) (
)
Annexure V:
Final Approval Letter Format
Date:
To
__________________________
__________________________
__________________________
__________________________
Sub: Approval of Assistance for Electronics Manufacturing Cluster at ___________________.
Sir/ Madam,
1. This is to convey the approval/ refusal of assistance for EMC by Government of Gujarat with
reference to your application registration number ___________ for development of Electronics
Manufacturing Cluster (EMC) at <<location>> with an estimated project cost of Rs. << >>.
2. You are conveyed approval of financial assistance, as per following schedule subject to
fulfillment of conditions in para 3.
Sr. no Type of Assistance Maximum Eligible Amount of Assistance

1. Financial Assistance (Amount in Rupees)
2. Stamp Duty/ Registration Fee Reimbursement (Please
include the documentary evidence of payments)
3. Feeder / substation for Electricity Supply: KVA/MVA
Rating Location at ______
(DPR should cover a section on Power requirement
assessment)
4. Power Tariff and Electricity Duty Reimbursement
3. You are also conveyed approval of the Government for setting up an electrical feeder
line/substation of ___ capacity for supplying quality power supply to units. This work will be
undertaken by the GUVNL’s Distribution Company (applicable) and Government contribution
towards the cost will be limited to Rs. ____ (max Rs. 5 crores). Additional amount for feeder
line/substation, above this amount will have to be deposited by you to the concerned
Distribution Company. Please submit a copy of such deposit where upon my office will deposit
____ amount for the Government as assistance under this scheme.
4. The approval conveyed herein for financial assistance for feeder is subject to following
conditions:
(a) You undertake execution of Project as proposed in DPR.
(b) Assistance will be limited to Max. Rs.______ or 25% of the expenditure made in eligible
Project cost components, whichever is lower.
(c) 2nd and 3rd installment of assistance is contingent on setting up of at least__ and __
ESDM units in the EMC, respectively.
5. The provision for feeder/substation will be made by the Government on your behalfwhen the
applicant has already incurred the expenditure of 60% of the project cost.
6. Benefit of Stamp Duty and Registration Fee exemption/reimbursement will be made to ESDM
units. The procedure and time line etc. shall be as defined in the scheme for ESDM units.
7. Disbursements – The disbursement of the assistance and execution of feeder work, if any, would
be done in following manner:-
(a) Advance release of 25% of Capital Subsidy by the Component Authority subject to
availability of whole area of EMC, approval of site layout plan by the competent
authority and approval of Pollution Control Board, if required.
(b) Second tranche of 50% of eligible Capital Subsidy will be disbursed after the eligible unit
has already incurred expenditure of 60% of the project cost in eligible activities.
(c) The third and final tranche of the Capital Subsidy amounting to 25% of eligible
assistance will be paid when the applicant has incurred expenditure of 100% of the
project cost.
(d) Reimbursement of Stamp Duty / Registration Fee, Power Tariff Subsidy, Electricity Duty
will be on basis of claim submitted as per incurring of such expenditure.
I wish you best of luck with the Project. Should you have any difficulty or have queries Mr.
____________ will be your personal contact. He can be reached at ___________.
Yours Sincerely
Annexure-VI:
List of Eligible Activities under this Scheme
Sr. No Activity
Basic Development
Boundary Wall
01
Internal Roads
02
Street Lighting
03
Storm Water Drains
04
Services
Government Support Office

05
Water Treatment Plant
06
Sewage Lines/Treatment
07
Waste Disposal / Recycling/ Water Harvesting
08
Electricity Sub-Station/Distribution
09
Backup Power Plant
10
Warehousing
11
Welfare Services
Employee Hostel & Mess

12
Hospital and ESIC
13
Recreational Facility Playground Clubhouse
14
Creche/Nursery
15
Local Shopping Centre
16
Restaurants
17
Educational Facilities
18
Support Services
Centre of Excellence (R&D, Incubation and Consultancy Services)

19
Training Facility / ITI
20
Auditorium & Conference Facility
21
Video Conferencing
22
IT Infrastructure / Telecom (Broadband Connectivity, Cloud Computing, ERP/Factory
23 Management System)
Manufacturing Support
Tool Room
24
CAD/CAM Design House
25
Plastic Molding
26
Sheet Metal Stamping
27
Packaging / Epoxy Suppliers
28
Testing and Certification Facility
29
Component Testing (Safety, Life Test, Reliability, Electrical & Mechanical Properties,
30 RoHS Testing, EMI/EMC Testing)
Government Regulatory Support / Services
Development Commissioner / Designated officer

31
Tax Support / Filing
32
Factory/Labour Compliance Support
33
Pollution Control
34

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Scheme of Assistance for ESDM Units

under Electronics Policy (2016-21)

Date: 29th February 2016.

Read: Electronics Policy (2016-21) dated 29.02.2016

2. With a view to provide focused attention on boosting manufacturing through increased

3. In the context of National Electronics Policy and associated emphasis on setting up of

5. As the Government of India undertook two major campaigns – National Skill

1.3 ‘Gujarat-based Company’ means a Company having its manufacturing facility in

1.6 ‘Expansion/ Diversification’ An expansion and/ or diversification contemplated

All eligible ESDM units shall be entitled to the following assistance:

2.4 VAT/CST/GST Incentive:

(d) VAT/CST/GST reimbursement will be allowed for a period of 10 years from

2.5 Incentive on Power Tariff and Electricity Duty:

2.7 Patent Assistance:

(d) The assistance will be in the nature of reimbursement.

2.8 Market Development Support

(a) Assistance to eligible MSME units for participation in International Trade

(b) Assistance to Industry Associations for participation in International Trade

(c) Viability Gap Support to Industries Associations will be provided for

(a) Fees charged by certification agency

(b) Consulting fees and training charges

(c) Cost of testing equipment as suggested by BIS and other national or

(d) Calibration charges of equipment

This ‘Quality certification scheme’ will be supplementary to any scheme of Central

3. Procedure for Making Application and Approval of Assistance: The following

3.3 Letter of In-principle Approval: The competent authority, on receipt of the

3.4 Communication of in-principle approval doesn't confer any entitlement to the

3.5 Validity of In-principle Approval: The in-principle approval, conveyed as above

(c) The Empowered Committee will record its decision as to approval of

3.7 Methodology for Disbursement: Based on the decision of Empowered Committee,

3.7.1 Disbursement schedule will be as follows:

1. Capital Subsidy On commencement of production as Reimbursement as per

3. Reimbursement of On Submission of Proof of Stamp Reimbursement on actuals

6. Employment Quarterly on submission of Proof Reimbursement on actuals

10. Assistance for R&D Three Tranches: Subject to ceiling

14. Viability Gap funding On submission of proof of Subject to ceiling

4. State Level Empowered Committee

(i) Industries Commissioner – Chairperson

(i) ACS/PS/Secretary, Department of Science & Technology

The senior of the Secretary in-charges of Department of Science and Technology

(a) MSME ESDM: The General Manager, District Industries Centre

Any interpretation or clarification under the scheme will be decided by the

By order and in the name of the Governor of Gujarat,

17. Strategic electronics, including assembly and components

23. Memory and Memory Devices

36. Software services for electronic devices

1. Name of the Person Applying

2. Nature of Entity (Please provide as much information as you can)

Type of Entity that will seek assistance under the

ESDM Unit (New/Expansion)

2. Tentative area (land area)

R&D Institution / Finishing School / Testing Centre

Tentative area of the land where R&D

Brief Description of the project activity proposed

ESDM Industry Association

1. Exhibition/Trade Fair name

2. Dates of exhibition/Trade fair

3. Expenditure planned by the association

4. When and how much similar assistance availed in