Electronics and IT ELECTRONICS
& EV

Industry outlook, Opportunity in Telangana

India

India
USD 70 Billion
Values of Electronics produced in India
25%
CAGR of Electronics Industry in India From 2015-20
2nd
Indiaโ€™s rank in mobile manufacturing in the world in 2018 in volume
USD 5 Trillion
Indiaโ€™s GDP target by 2025
Telangana
Indiaโ€™s share in global electronics manufacturing
3%
Export of electronic goods in 2018-19
USD 8.8 Billion
Indiaโ€™s budgetary outlay for Electronics Industry Schemes
USD 6.5 Billion
Employment generated by Indiaโ€™s electronics manufacturing industry
20 Lakhs

Telangana

Telangana Stateโ€™s Electronics Manufacturing contributed INR 76,410 Crores in 2019-20, accounting for ~ 13% of the Stateโ€™s Industrial GVA.

  • ESDM Policy launched in State to facilitate Electronics Investments.
  • 2 ESDM clusters at e-City, Raviryala (602 Acres) & Maheshwaram Park (310 Acres).
  • Key global players such as Nvidia, Motorola, Qualcomm, AMD, CDAC, Cypress, etc.,
  • Home grown companies such as BHEL, BEL, HBL, ECIL, etc.
  • Recently attracted investments from majors such as Apple, Micromax, HFCL, Resolute, etc.
  • OPPO and OnePlus establishing design & development centres creating 1000+ technical jobs.

ELECTRONIC SECTOR PERFORMANCE - TELANGANA

  • ESDM Policy is launched in state to facilitate Electronic Investments.
  • 2 ESDM Clusters at e-city, Raviryala(602 Acres) & Maheshwaram Park(310 Acres).
  • Currently accounts for 6% of the electronics production in the country.
  • Over 250 companies employing more than 50,000 employees across different sub-segments.
  • Key Global players such as NVidia, Motorola, Qualcomm, AMD, CDAC, Cypress. etc.
  • Home grown companies such as BHEL, BEL, HBL, ECIL, etc.
  • Recently attracted investments from majors such as Apple, Micromax, HFCL, Resolute, etc.
  • OPPO and OnePlus establishing design  & development centres creating 1000+ technical jobs.

Segment-wise contribution of Industries in Telangana to the state's electronics GVA
Telangana Stateโ€™s Electronics Manufacturing contributed INR 76,410 Crores in 2019-20, accounting for ~ 13% of the Stateโ€™s Industrial GVA

FOCUS Sectors

Mega Projects
  • Handsets, OEMs, consumer electronics
  • Semiconductor facilities Independent Foundrie
  • Display Fabrication & Photonics LED Chip Fabrication Units.
Electronics Components Manufacturing System
ย 
ย 
ย 
ย 
ย 
  • Core components like PCBs, switches, etc.
  • Lithium-ion cells
  • Fuel cells
  • Preform of Silica
Electronics Manufacturing Services Industry
ย 
ย 
ย 
  • Design and assembly of PCBs
  • Functional testing and maintenance services.
Assembly, Testing, Marking and Packaging Industry
ย 
ย 
ย 
  • Providing AMTP lines for
  • Semiconductor ICs,

ELECTRONICS POLICY-INCENTIVES CHART

Electonics Wing, ITE&C Dept, Govt. of Telangana

Electronic Policy-Incentive Chart-Core, Mobile & Consumer Electronics

Parameters
TS Electronics policy-Core
TS Electronics Policy-Mobile
TS Electronics Policy-Con.Elec.
Values
Caps
Values
Caps
Values
Caps
Capital Cost Reimbursements
20%
INR 2 Cr.
20%
INR 10 Cr.
20%
INr 15 Cr.
Land Rebate(Discount % of Market Price)
60%
60%
60%
Lease Rentals Assistance
25%
10 Years
25%
10 Years
25%
10 Years
Interest Subsidy
5.25%
5 Years (INR 5Cr.0)
5.25%
5 Years (INR 5Cr.0)
5.25%
5 Years (INR 5Cr.0)
Power Subsidy
25%
3 Years (INR 30L)
25%
3 Years (INR 30L)
25%
3 Years (INR 30L)
SGST Reimbursements
100%
7 Years
100%
7 Years
100%
7 Years
Skill Development Assistance
TASK
TASK
TASK
Electricity Duty Exemption
100%
5 Years (INR 50L)
100%
5 Years (INR 50L)
100%
5 Years (INR 50L)
Transport Subsidy
60% with 10% redcution yoy
5 Years (INR 5 Cr.)
60% with 10% redcution yoy
5 Years (INR 5 Cr.)
60% with 10% redcution yoy
5 Years (INR 5 Cr.)
Stamp Duty/ Transfer Duty/ Registration Fees Reimbursements
100% on first/ 50% on second transaction
100% on first/ 50% on second transaction
100% on first/ 50% on second transaction
Quality Certification Reimbursements
50%
INR 2L
50%
INR 2L
50%
INR 2L
Patent Registration Reimbursements
50%
INR 2L
100%
INR 5L
50%
INR 2L
Cleaner Production Practices
25%
INR 5L
25%
INR 5L
25%
INR 5L
Exhibition Reimbursements
50%
INR 5L
50%
INR 5L
50%
INR 5L

ELECTRONICS POLICY-INCENTIVES CHART

Electonics Wing, ITE&C Dept, Govt. of Telangana

Electronic Policy-Incentive Chart-LED, PCB Assembly & Mega Projects (Customized)

Parameters
TS Electronics policy-LED
TS Electronics Policy-PCBA
TS Electronics Policy-Mega (Customized)
Values
Caps
Values
Caps
Values
Caps
Capital Cost Reimbursements
20%
INR 2 Cr.
25%
5 Cr.
20%
30 Cr.
Land Rebate(Discount % of Market Price)
60%
60%
60%
Lease Rentals Assistance
25%
10 Years
25%
10 Years
25%
10 Years
Interest Subsidy
5.25%
5 Years (INR 2.50 Cr.)
5.25%
5 Years (INR 5Cr.)
5.25%
5 Years (INR 5Cr.)
Power Subsidy
INR 1.5 per unit
5 Years (INR 50L)
25%
3 Years (INR 30L)
INR 1.5 per unit
5 Years (INR 5 cr.)
SGST Reimbursements
100%
7 Years
100%
7 Years
100%
7 Years
Skill Development Assistance
TASK
TASK
TASK
Electricity Duty Exemption
100%
5 Years (INR 50L)
100%
5 Years (INR 50L)
100%
5 Years (INR 50L)
Transport Subsidy
60% with 10% redcution yoy
5 Years (INR 5 Cr.)
60% with 10% redcution yoy
5 Years (INR 5 Cr.)
60% with 10% redcution yoy
5 Years (INR 5 Cr.)
Stamp Duty/ Transfer Duty/ Registration Fees Reimbursements
100% on first/ 50% on second transaction
100% on first/ 50% on second transaction
100% on first/ 50% on second transaction
Quality Certification Reimbursements
50%
INR 2L
50%
INR 2L
50%
INR 2L
Patent Registration Reimbursements
50%
INR 2L
100%
INR 5L
50%
INR 5L
Cleaner Production Practices
25%
INR 5L
25%
INR 5L
25%
INR 5L
Exhibition Reimbursements
50%
INR 50k
50%
INR 5L
50%
INR 5L

SUB-Sectors

ย 

Electronics design automation, protyping

ย 
ย 
ย 
  • Sourcing for Defence / Space
  • Avionics Manufacturing
ย 
ย 
ย 

The state of Telangana one of the major Aerospace and Defence hubs in the country and has a huge scope in the sub sectors โ€“Avionics & Defence Electronics.

4 Aerospace Parks and 2 upcoming Parks (10 mins from Airport)

  • Adibatla SEZ, Nadergul DTA, Hardware Park 1, Hardware Park 2, GMR SEZ, Adani Park, E- City AND Eliminedu
  • Key Players: Presence of Key players like Safran, CFM, Honeywell Aerospace, GE, Elbit Systems, etc.
  • Hyderabad has a strong presence of Defence PSUs, scientific & technological institutes along with R&D agencies โ€“ ARCI, DRDO, etc.
  • Relatively low cost aerospace manufacturing & MRO hub for Asia-Pacific and Middle East provides a competitive edge. Hyderabad is a seismically safe city as it falls under seismic zone.
ย 

The state of Telangana is also the Pharma Capital of India โ€“ Medical Electronics

Medical Devices Park (50 minutes from Airport)

  • Indiaโ€™s largest medical devices park
  • Houses Asiaโ€™s largest coronary stent manufacturing facility

Telangana has over 800+ Pharma & Biotech firms valued at USD 50 Bn, it is the Vaccine capital of the world and accounts for 40% of Indiaโ€™s Bulk drug production. With a growth of 2.4x in Pharma exports and the presence of large multi-nationals like Dr. Reddyโ€™s, Novartis, Biological E and Medtronic and the supply chain, Telangana presents a huge potential for Medical Electronics.

ย 
ย 
ย 
  • Components for EVs, drones, intelligent transport systems and automations.
  • Electric Vehicles and Energy Storage Systems
ย 
  • Telangana state aims to target 50GWH of storage demand by 2025.
  • The state has emerged as a pioneer for creating a conducive policy environment for all the ecosystem of EV’s.
  • Telangana is a key player in the national EV ecosystem with existing players like BYD-Olectra, Pure EV and Mahindra Electric, Fortum etc.ย 
  • Out of a total of 150+ย charging stations and more than 40 are located in Hyderabad, among the highest for any city in India.
  • The Government of Telangana is poised to apply for the Govt of India GiGa Factory Scheme by NITI Aayogย for 10GWh lithium cell manufacturing facility.
  • Major markets for battery cells in India include Electric vehicles, Station Energy Storage Solutions and Consumer Electronics.
Vehicle Category
Base Case Demand
Best Case Demand
2 wheelers (Private)
2,240,624
4,883,958
3 wheelers
96,588
174,138
4 wheeler (Pvt Car)
290,578
370,360
Commercial Cars/Taxis/LCV Passenger
36,798
86,065
Buses
7,968
11,570
LCV Goods Carrier
133,405
266,728

Major Investments

west coast
frizair
axiom
skyworth
celkon
safran
grav
HFCL
micromax
lockheed

Government Support

Incentive Type
Amount/Capital
Capital Investment Subsidy
20% Capped at INR 30 Cr. (USD 4,285,000) for Mega Enterprises; INR 2 Cr. (USD 285,000) for Others
SGST Reimbursement
100 % net SGST for 7 years; Capped to investments made in plant and machinery.; Capped at INR 2 Cr. (USD 285,000) for 5 years for Micro & Small Enterprises
Power Tariff Discount
25% for 5 years Capped at INR 5 Cr. (USD 710,000) for Mega Enterprises; Capped at INR 30 Lakh (USD 42000) for 3 years for Others
Electricity Duty Exemption
100% for 5 years; Capped at INR 5 Cr. (USD 710,000)
Interest Subvention
5.25% for 5 years; Capped at INR 5 Cr. (USD 710,000)
Transportation Subsidy
60% with 10% reduction YoY – for 5 years; Capped at INR 5 Cr. (USD 710,000)
Stamp Duty/ Transfer Duty/ Registration Fees Reimbursements
100% on first, 50% on second transaction
Lease Rental Assistance
25% subsidy on lease rentals for a period of 10 years
Assistance in Patent Filing
50% of the cost of filing patents; Capped at INR 5 Lakh (USD 7,100) for Mega Enterprises and INR 2 Lakh (USD 2,800) for others
Reimbursement Quality Certification costs
50% of the cost uncured for certification; Capped at INR 2 Lakh (USD 2,800) (Conformity European (CE), China Compulsory Certificate (CCC), UL Certification, ISO, CMM Certification, SA, RU etc.)
Cleaner Production Practices
25% of the cost incurred; Capped at INR 5 Lakh (USD 7,100)
Exhibition Cost Reimbursements
50% of the cost of filing patents; Capped at INR 5 Lakh (USD 7,100)
Skill Development Assistance
Skill Development Assistance will by provided by Telangana Academy for Skills & Knowledge
You must enable Billing on the Google Cloud Project at https://console.cloud.google.com/project/_/billing/enable Learn more at https://developers.google.com/maps/gmp-get-started

Industry Speaks

×

Government of Telangana || Electronic Policy

Partner Organizations

Premier Technical Institutes for Skilling include:

  • Electronics Test and Development center (ETDC)
  • Central institute of Plastics Engineering and Technology. (CIPET)
  • Central Institute of Tool Design.
  • ECIL
  • BHEL

Queries

ย 
ย 

Got questions on Policy Suggestions & Clarifications, Unsolicited Proposal Submissions, Grievance Collections

Click on the button below and share your queries with us!

Investing in us?

ย 
ย 
ย 
ย 
ย 
ย 
ย 
ย 
ย 

Please get in touch with us by sharing your details and our team will reach out to assist you with the same.

Click on the button below!

Downloads