Govt to provide impetus to electronic industries

Hyderabad, April 28 (INN): Members of the Electronics Industries Association of Andhra Pradesh, ELIAP, have blamed the state government for not encouraging the small entrepreneurs of the electronics industry.

They also said that the government was showing step-motherly treatment to the small scale industries in the electronic hardware industry in respect of any developmental or growth activity is concerned.

Vasavi Electronics CEO K S Babu, ELIAP AO D Venkat Rao, and others maintained that the FAB city located in Maheshwaram in Ranga Reddy district has been monopolized by 15 to 20 big IT companies while the small ones were almost ignored.

Given a chance, the SSI units were ready to compete in terms of performance, they stated at a press conference convened by Minister of Information Technology Ponnala Lakshmaiah at the Secretariat on Thursday.

Besides providing employment opportunities to even tenth class students, it was made clear that the industry gave enough scope for pollution free environs, less power consumption while assuring good returns for what was invested.

Mr Lakshmaiah had called the press conference to brief the media about the government's initiatives to boost the IT industry, but it soon turned into a platform for the ELIAP to ventilate grievances and its expectations from the government.

Most of the ELIAP members sought positive media cooperation for better growth apart from proper support from the government. All that the government did was to modify a GO on April 27, transferring 'Electronic Hardware' subject to Information Technology and Communications Department with immediate effect, the ELIAP members said.

As against an allotment of 1600 acres to the IT companies, they said that hardly 105 acres were being used due to disparity shown by the government. But the scope of the electronic hardware was said to be immense in the sub-continent.

Telecommunications, defence and strategic electronics, signals and communications in the railways, medical electronics, power electronics, aviation electronics, solar products are some of the key areas which offer rapid growth in the electronic hardware including job prospects.

With a strong presence of defence and related public sector undertakings such as DRDL, DRDO, RCI, BDL, BEL, HAL, ECIL and BHEL among others, the growth prospects were said to be positive. The ELIAP members expressed their opinion that all this growth was possible if only government took steps to support them.

Ponnala's assurance

Reacting to the ELIAP members' keen participation, Minister for IT and Communications Ponnala Lakshmaiah assured them that the government will provide the necessary impetus to the industry in a month to facilitate growth and competition among the companies.

He said that the government will identify over 250 acres near the International Airport, Shamshabad, and develop it as a Electronic Hardware Special Economic Zone providing a common facilitation centre/incubation centre with full-fledged testing facilities to meet the global parameters such as EMC, safety testing, RF and microwave testing, environmental testing and endurance testing among others.

He also said that efforts would be made to bring the Anchor Industry in electronic hardware manufacturing to our state in line with Korea, Taiwan, Hong Kong, China and Malaysia which became major hubs in such areas.

The ICT policy 2010-2011 identified the electronic hardware as a thrust area and following incentives are provided. Total reimbursement of stamp duty, transfer duty and registration fee paid by electronic hardware companies on sale/lease deeds on the first transaction and 50 per cent reimbursement on cited subjects on the second transaction.

Admissibility of industrial power category tariff:- 25 percent power subsidy on power bills for three years or Rs 30 lakh after their operations are effective. Patent filing costs will be reimbursed to a maximum of Rs 2 lakh. Fifty percent reimbursement of exhibition stall rent at notified exhibition.

Besides, the Minister decided to consider the following suggestions:- to classify projects with investments of Rs 20 crore and above as a mega project for offering tailor made benefits. To give thrust to MSME segment in terms of investment subsidy, tax holiday, power subsidy, and recruitment assistance.

He also suggested the preparation of a road map focusing strengths and advantages for our state and how AP could be the best investment destination and to organize an exclusive event/ conference shortly on 'Destination AP' for electronic hardware.