In a bid to transform Delhi into a prominent destination for electronics design and manufacturing, the Delhi government has introduced a new policy aimed at fostering the growth of the electronics industry, generating employment opportunities, and promoting manufacturing excellence.
Titled the “Delhi Electronic System Design Manufacturing and Refurbishing Policy 2022-27,” this policy initiative aims to breathe new life into the electronics manufacturing and refurbishment sector in the region. It is poised to cater to local, national, and international demands for electronics products.
The draft of this policy is set to be made accessible to the public, including industrial stakeholders, for their valuable input and suggestions, as announced by officials.
Decades ago, Delhi played a pivotal role in the electronics manufacturing boom in India. However, over time, it transitioned from being a manufacturing hub to becoming the largest market for electronic and electrical products in the country.
Through this policy, the Delhi government intends to rekindle the electronic manufacturing and refurbishment industry in the region. The policy is expected to remain in effect for five years, and eligible units must be situated within the Electronics City, emerging in the southwest part of Delhi in Baprola.
As part of the policy, the Delhi government will provide a reimbursement for the state component of the goods and services tax (GST), amounting to 9 per cent during the first and second years of operation, and 50 per cent during the third to fifth years of policy implementation.
The government anticipates that approximately 300 units will qualify for this tax exemption, resulting in an annual reimbursement of approximately Rs 1,890 crore and a total of Rs 9,450 crore over the five-year policy duration.
Furthermore, the government is set to incentivize employment by offering a monthly stipend of Rs 7,000 to skilled female workers and Rs 3,500 per month to skilled male workers. The government acknowledges that employee expenses constitute a significant portion of operational costs for these units. Detailed policy guidelines, eligibility criteria, and operational guidelines for the incentive scheme will be prepared separately by the industry department.
Additionally, the Delhi government will collaborate with Delhi Skills and Entrepreneurship University to provide skill development courses to enhance the expertise of employees working in operational electronics design and refurbishment units.
To ensure the timely and effective implementation of the policy, the government will establish a steering committee under the leadership of the industries minister. This committee will aim to streamline the business environment for all operating units through inter-departmental coordination.
The committee will comprise key members, including the vice-chairman of the Delhi Dialogue and Development Commission, the industries commissioner, nominated representatives from the environment, power, and labour departments, the Delhi Jal Board, and two industry experts.
Officials emphasize that the policy’s development stems from stakeholder consultations, industry visits, and comprehensive comparative analyses of policies across India.