Close on the heels of Andhra Pradesh announcing establishment of mobile manufacturing hub at Tirupati, the Telangana government has come out with a policy to make the State “a hub for mobile phone manufacturing” by announcing tax sops for the units.
The government issued two orders on Tuesday – one to announce the policy and the other to allot 18.66 acres to Micromax to set up a manufacturing facility, giving it all the benefits under the new policy.
The policy has called for allotment of land for at least 10 anchor units, with a capital subsidy of 20 per cent (with a ceiling of ₹10 crore per company). The units will get an interest subvention of 5.25 per cent on term loans for 5 years.
The units will be eligible for reimbursement of 100 per cent stamp duty. The VAT rate has been fixed at 5 per cent.
Hardware clusters The State government wants to utilise the two electronic hardware clusters allotted by the Centre to promote manufacture of mobile phones, components that go into phones and accessories.
The two clusters are coming up at Fabcity (602 acres) and Maheshwaram (310 acres) in Ranga Reddy district. The Telangana State Wide Investment Facilitation Board (T-SWIFT) has been created to process the applications for the clearance of mega projects.
In a related development, the government allotted 18.66 acres to Micromax at Raviryal village near Hyderabad. The firm will set up a mobile handset manufacturing factory with an initial investment of ₹80 crore, with a promise to provide 1,250 jobs.
The Telangana State Industrial Infrastructure Corporation Limited (TSIIC) made this allocation on Tuesday for Bhagwati Products Ltd (Micromax).
Besides, the firm is eligible for tax and other benefits as it gets ‘Mega Project’ tag. The firm will manufacture mobile phone instruments and accessories. It would be treated as the anchor unit at the EMC (Electronic Manufacturing Cluster) where other phone firms too are expected to set up bases.
It will get 100 per cent reimbursement of VAT for 10 years from the commencement of operations.