Andhra clears new ₹4,600 cr policy to boost electronic part manufacturing

The Andhra Pradesh government on Friday cleared Electronics Component Manufacturing Policy 4.0, lining up incentives to the tune of ₹4,600 crore to boost electronic component manufacturing in the southern state, with a focus on Sri City, Hindupur, Orvakal and Kopparthy.

 

The state plans to achieve an overall target of $100 billion in investments in the electronics ecosystem, a government source said.

 

As a special attraction, the policy is also providing an early bird incentive for the first ten projects, with a minimum committed investment of ₹250 crore over a period of five years. This includes a capital subsidy of up to 50 per cent of the investment, to be paid in two equal annual instalments.

 

 

Other incentives include offering land at a 75 per cent discounted price.

 

This comes four months after the Central government lined up the Electronics Components Manufacturing Scheme (ECMS) with sops of around ₹22,919 crore. According to reports, the Ministry of Electronics and Information Technology has so far received around 100 applications from Indian and international companies to set up units under the ECMS.

 

Interestingly, the Andhra Pradesh government would provide a 100 per cent subsidy matching the subsidy amount approved and released by the Central government under the ECMS.

 

This incentive will be disbursed within six months from the time the Centre releases the corresponding incentive under ECMS, in the corresponding proportion applicable under this policy. 

 

Firms getting the early bird incentive are not eligible for this incentive.

 

“The move is expected to help companies like Syrma SGS and Daikin Industries, who have already lined up massive investments in the state,” a government source said.

 

“A key beneficiary would be Syrma SGS, which is applying under this policy to get incentives to set up India’s largest PCB plant and copper-clad laminate factory with an investment of ₹1,800 crore. This project would be established in partnership with South Korean firm Shinhyup Electronics, which will bring its technological expertise to the venture,” he added.

 

Other incentives for these companies include 100 per cent exemption on electricity duty for six years from the notification of this policy. Moreover, reimbursement of power cost, SGST, and stamp duty are being offered, in addition to recruitment assistance provided as per the Andhra Pradesh Electronics Policy 4.0.

 

The state is trying to woo investors at a time when the country’s electronic production reportedly doubled in the last six years to $115 billion, driven by global majors like Apple and Samsung.

 

Since the Nara Chandrababu Naidu government took charge in 2024, Andhra Pradesh has seen a series of electronics sector investments including LG Electronics India’s ₹5,000 crore unit, Daikin Industries’ ₹2,475 crore additional investment, Carrier Global’s ₹1,000 crore unit, Wingtech Mobile Communications’ ₹1,061 crore investment, and Sensorem Photonics India’s ₹9,246 crore expansion plans.

 

Naidu had said last month that the state has set a target of attracting $100 billion in investments to the electronics sector, focusing on areas in and around Sri City near Tirupati, Orvakal near Kurnool, Kopparthy, and Hindupur.