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Cabinet approves new National Electronics Policy
Why in news?
- The Union Cabinet on Tuesday approved the new National Electronics Policy 2019.
- It aims to achieve a turnover of $400 billion (about ₹26 lakh crore) for the electronics system design and manufacturing (ESDM) sector by 2025,
- It also aims to generating employment opportunities for one crore people.
More about the news
Enable flow of investment and technology:
- This will lead to higher value addition in the domestically manufactured electronic products.
- Helps in increased manufacturing of electronics hardware for local use.
Easier to implement incentive schemes:
- This includes interest subvention scheme and credit default guarantee, to replace some of the existing ones under the National Electronics Policy 2012.
Other major incentives:
- The new policy proposes to provide interest subsidy of 4% on loans up to Rs 1,000 crore on plant and machinery.
- The government also proposes to create a fund to provide default guarantee of up to 75% to the banks for plant and machine loans of up to ₹100 crore.
- This will eliminate the need for small and new investors to provide third party collateral.
About National Electronics Policy 2019
Salient Features of NPE 2019:
- Create eco-system for globally competitive ESDM sector : Promoting domestic manufacturing and export.
- Provide incentives and support for manufacturing of core electronic components.
- Provide special package of incentives for mega projects which are extremely high-tech and entail huge investments.
Highlights of the NEP 2019:
- The policy targets production of one billion mobile handsets by 2025, valued at USD 190 billion.
- It is targeted to export 600 million mobile handsets valued at USD 110 billion.
- It promotes a forward looking and stable tax regime, including advance intimation to the industry to plan investments in the form of Phased Manufacturing Program (PMP) in various segments of electronics.
Source
The Hindu