22 June 2012 by Kavitha Srinivasa
The policy unveiled by Andhra Pradesh Chief Minister N Kiran Kumar Reddy is expected to encourage big ticket investments. The AP Electronic Hardware Policy 2012-2017 is packaged with incentives to lure investors as well as improving the existing electronics units. The attraction comes in the form of a 100 per cent reimbursement of value-added tax (VAT) and goods and services tax (GST), for five years upon setting up units in Hyderabad and other parts of the state. The most important aspect of it is that it has been powered, as the government has exempted it from power cuts and statutory inspections. Simply put, the electronics industry can rake in huge profits and make the state's GDP swell by operating under a three-shift schedule, which is also open to including women under its wing.
The New Draft Electronics Policy, which will be implemented next month, is hoped to put the electronics sector on the right track. This is because only a meager 30% of the electronic component demand is met through local sources, leaving a lot to the fulfilled. It is estimated that the domestic manufacturing companies can expand production to $100 billion by 2014 and $400 billion by 2020.
It then makes sense to take advantage of Advantage AP 2012. Andhra Pradesh is one of the few states in India to have a dedicated electronics policy. The Policy provides the necessary framework to develop hardware manufacturing clusters in Special Economic Zones (SEZs) and non-SEZs. Harboured in a conducive environment, it is proposed to have four clusters or hubs. The state is going gusto over promoting manufacturing and design, along with their related industries.
In a way, Andhra Pradesh had already fostered an eco system long time ago. It was the country's first state to digitize the State assembly library right from 1952 and make it available in a search mode. Another first of its kind initiative is the electronic citizen services scheme titled MeeSeva. Introduced last year, its functions include land records and birth certificates, among others.
Andhra Pradesh has already established itself as an IT destination. Cyberabad, the special development zone in Hyderabad has transformed its IT landscape. This led to investor-friendly government policies and a large talent pool to fall back on. Hyderabad came to be known a cyber city, a branding which came about due to the presence of multinational IT giants and Fortune 500 companies like Microsoft, Google, IBM and Oracle. In its capacity as IT destination, Hyderabad has hosted several hi-profile events including the Global In-house Centre Conclave.
The mood is upbeat as tier cities are being revamped into potential IT investment locations. Port city Vishakhapatnam, along with other tier cities like Vijaywada has been developed with adequate infrastructure.
The much-anticipated summit has packed in sessions on the disruptive technologies, which includes aspects like Cloud, Mobility and their imperatives for businesses. Many of these sessions saw the participation of CEOs who represented about 25 major IT companies.
A press release stated that this is the 2nd edition of the State promoted IT Promotion Summit which is being held annually by the IT&C Department to promote and attract IT Investments in the state. The summit concluded today.
Posted By: Kavitha Srinivasa @ 22 June 2012 06:10 PM General
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