The Hindu Business Line : Kerala plans exclusive SEZ for IT hardware companies

Kerala plans to set up an SEZ exclusively for IT hardware manufacturing for which the preliminary work has already been completed, the State Industry Minister, Mr Elamaram Kareem, said.

Inaugurating a one-day workshop organised jointly by the Electronics Industries Association of India (ELCINA) and the Kerala State Industrial Development Corporation (KSIDC) here, he said that the State Government was planning to extend all the concessions available to the IT industry to the electronics hardware industry as well, such as special power tariffs, exemption from stamp duty and registration fees for all units established in IT hardware parks.

IT hardware units established in Kerala will also be entitled to a 10 per cent price preference in IT hardware procured by the Kerala Government, government bodies and other PSUs, he told the 100-odd participants from the industry at the workshop.

The workshop was meant to provide more information to the participants about the State as one of the best emerging destinations for electronics industry in India.

Growth potential

“The Indian market for electronics is expected to grow to $320 billion by 2015 and there is a potential for the Indian domestic hardware manufacturing industry also to grow to $155 billion in 2015,” Mr Jainder Singh, Secretary IT, Government of India, said.

He pointed out that electronics manufacturing has the potential to generate employment for even low skilled people left out of the opportunities in software development. The Government of India has over the last few years has taken a number of measures to promote the growth electronics/IT hardware manufacturing industry. As a result, the hardware manufacturing industry in India is at a take-off stage.

He also explained the new policy of the Government for establishing IT Investment Regions. IT Investment Regions could contain SEZ within them. Both the State and Centre will provide necessary infrastructure in the areas where they have basic responsibilities.

Mr Jainder Sigh said that as a result of the Government of India decision to provide investment subsidy of 20-25 per cent to IT hardware units, the Government has secured investment proposals totaling Rs 62,000 crore.

While hailing the support extended by the government, the availability of skilled manpower and conducive environment prevailing in the State, the industry participants suggested that the government should also help in setting up some technology business incubators, extend VAT concessions for the electronics industry, make available more trained personnel from ITIs, create physical infrastructure and exclusive industrial parks.

At the open-session at the end of the workshop, Mr Kareem announced that incubators for electronics hardware manufacture would be set up in industrial units and educational institutions, with the involvement of the government and government agencies. The state Industries Department would be an active participant in the International Exhibition of Electronics Hardware Industry organised by ELCINA in Delhi.

The Minister said that the government is working on developing an electronics manufacturing hub in the district, finalising the site and project parameters would be announced very soon.

The request for participation from the government to formulate specific packages for the electronics hardware sector would be addressed by the Government after due deliberations involving all stakeholders, he said.

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