Press release

Maharashtra to Unveil New Electronics

Hardware Manufacturing Policy after return
of Chief Minister from China visit with Modi
The Maharashtra Government is all set to release the new state Electronics
Policy. The announcement is expected to be made shortly after the Chief
Minister, Mr. Devendra Fadnavis returns from the China visit along with Prime
Minister Modi.

This was revealed during a meeting with the Electronics

Hardware and Software Industry leaders at a high-level meeting Chaired by

the Chief Minister at the State Guest House in Mumbai on 8th May, 2015.
Mr. Apurva Chandra, the Principal Secretary, Department of Industries,
presented the draft policy during the meeting which was attended apart from
the Chief Minister, by the Minister for Industries, Chief Secretary, Additional
Chief Secretary IT, Additional Chief Secretary Environment, Principal
Secretaries from major administrative Departments like Urban Development
- I & Urban Development - II, Revenue, Finance, Labour etc.
Mr. Chandra mentioned that the new policy is aimed at creating a favorable
regulatory dispensation in Maharashtra State to make it competitive vis--vis

other states like Karnataka and Punjab in terms of fiscal and non-fiscal
incentives being offered.

Incentives like availability of reimbursement of VAT for goods produced and

sold within the state, Interest subsidy, reducing threshold of mega projects,
separate investment subsidy package for manufacturing of Lithium Ion
Battery etc., lowest VAT rate to be levied on electronics products used for
data communication by declaring such products as goods of special
importance etc. are expected to rejuvenate the efforts of the state
administration and Industry bodies like ICA to help establish robust
manufacturing eco-system in Maharashtra in the Electronics sector specially
in the Mobile handset segment.
Even manufacturing in forward areas like Mumbai and Pune will be
incentivized. These incentives are offered over and above those offered by
the Central Government under the National Policy of Electronics and stalwart
policies like M-SIPS which offers 20 25% of subsidy on capital investments
in the Electronics Sector.
The Indian Cellular Association (ICA), an organization representing major
global and national players in the mobile handset sector, which has also
been playing a pioneering role for establishment of ESDM sector specially in
the mobile handset segment, was specially invited to provide inputs on the
proposed manufacturing policy on the electronics hardware sector. An ICA

delegation led by Mr Rajesh Aggarwal, Co-founder of Micromax had attended

the meeting and welcomed the policy parameters and the Chief Ministers
categorical assurance that the package will be released within three weeks
time after his return from the China visit with Prime Minister, Mr. Narendra
Modi.
Mr. Aggarwal mentioned that Maharashtras assets of access to the sea can
be leveraged and the proposed incentives are competitive and at par with
the ones being offered by other states. And the state would be

The

delegation told the Chief Minister and officials that VAT reform in the new
policy is a must. The applicable VAT rate on mobile handsets in Maharashtra
which stands at 12.5% is higher compared to other states in India; and the
same needs to be brought down. It was further mentioned that the 12.5%
VAT when combined with high octroi of 6%, manufacturing prospects is at a
severe disadvantage currently in Maharashtra.
Mr. Pankaj Mohindroo, National President, Indian Cellular Association (ICA)
mentioned that "ICA has been closely collaborating and supporting the
efforts of the Maharashtra Government for establishing robust manufacturing
eco-system in the Electronics sector specially in the mobile phone
manufacturing eco-system during the last one year. And the Industry is
extremely

enthused

to

learn

the

inclusion

of

many

of

our

key

recommendations under the revised Draft policy which is expected to be

unveiled soon."

"ICA envisages that with the kind of regulatory support that the Maharashtra
Governemnt has been contemplating for boosting the growth of the sector
under the leadership of the Hon'ble Chief Minister, the state may not be far
away from being favourably considered by the investor's community, who
are fully conscious about the large domestic market share of the state in the
ESDM

sector

specially

in

mobile

phones,

well

developed

physical

infrastructural facilities and availability of skilled labour", Mr. Mohindroo

further added.
Chief Minister Mr. Fadnavis, the Industries Minister and the senior officials
from the state administration who had attended the meeting assured the
industry about the states utmost priority to take forward the manufacturing
vision in the electronics sector and the thoughtful inputs of the Industry and
recommendations / concerns will be thoroughly examined and addressed
before the final electronics policy is finalized and unveiled.