Manufacturing/ Assembly of

Mobile Phones

Electronics & Hardware

Government of Gujarat
Contents

Project Concept 3
Market Potential 5
Growth Drivers 6
Gujarat – Competitive Advantage 7
Project Information 8
- Site Location
- Infrastructure Availability/ Connectivity
- Mobile phone manufacturing value chain
- Key Players
- Key components
- Manufacturing plans of some other mobile phone
players
- Potential Collaboration Opportunities
Project Financials 14
Approvals & Incentives 15
Key Department Contacts 18

Page 2
Project concept
Mobile phones market overview
Global mobile phone market overview
Worldwide mobile phone shipments (bn)

4.1%
CAGR
1.9 2.0 2.0
1.7 1.7
0.7 0.5 -19.6%
0.9
1.2 1.0
1.3 1.5 31.6%
0.7 1.0
0.5

2011 2012 2013 2014 2015

Smartphone Feature phone
Source: IDC

 Worldwide smartphone market grew at a robust CAGR of 31.6% during 2011-2015 due to
increased preference of consumers for advanced phones, increased penetration of low-cost
devices (sub-$125) in the emerging markets and ongoing replacements in the mature markets.
 Smartphones accounted for 75% of the total mobile phone shipments in 2015 as compared to
29% in 2011.

Worldwide mobile phone revenues (USD bn)

CAGR
11.6%
412 438
374 14
329 23 -31.6%
282 32
46
64
389 424 18.1%
283 342
218

2011 2012 2013 2014 2015

Smartphone Feature phone
Source: IDC

 Global smartphone revenues grew at a much smaller pace (CAGR of 18% during 2011-2015) as
compared to shipments due to declining smartphone ASPs (average selling prices) with the
increase in competition.
 Overall, mobile phone revenues grew at a CAGR of 11.6% during 2011-2015, driven by growth in
smartphone revenues, partially offset by decline in feature phone revenues at CAGR of 31.6%
during the same period.

Page 3
Project concept - Mobile
phones market overview
Indian mobile phone market overview

Indian mobile phone market volume and value

Volume in million units

1200 305
270
Value in INR billion

245 300
900
200
180
200
600
1000
750 100
300 570
382 461
0 0
2011 2012 2013 2014 2015F

Value Volume

Source: Speeding ahead on the telecom and digital economy highway, EY, 2015

 Mobile phone shipments in India grew at a CAGR of 14.1% during 2011-2015, driven primarily by
increased customer buying power, increased sale of low-cost smartphones and technological
advancements in the phone that makes daily life easier.
 Further, the shift to 3G and 4G network from 2G network is driving the demand and replacement
of the feature phones by smartphones in the Indian market.

Indian smartphone market volume and value

800 100 120

Volume in million units

Value in INR billion

100
600 70
80

400 32 60
730
20 560 40
12
200
294 20
200
0 135 0
2011 2012 2013 2014 2015F

Total Value of Smart Phones Smartphone Volume

Source: Speeding ahead on the telecom and digital economy highway, EY, 2015

 Smartphone shipments in India crossed the 100 million mark in 2015, growing almost 30% YoY,
positioning India as one of the fastest growing smartphone markets in Asia Pacific.
 Inaddition, the growth in smartphone sales in India is taking place via the e-commerce route from
major e-tailers such as Flipkart, Snapdeal and Amazon. The online share has risen to 37.3% in
4Q15, growing 2.5 times as compared to 4Q14.

Page 4
Market potential

Global market potential

Worldwide mobile phone Worldwide mobile phone
shipments (in bn) revenues (USD bn)
CAGR
CAGR
2.0 1.2% 2.1 2.0% 483
0.2 3 -27.7%
0.5 -20.5% 447
1.9 11 480 2.3%
1.5 6.1%
437

2016F 2020F
2016F 2020F
Smartphone Feature phone Total mobile phones
Smartphone Feature phone
Source: IDC
 The saturation in the global smartphone market is expected to drive its growth at a slow rate of
6% during 2016-2020 as compared to 31% during 2011-2015. The demand would primarily be
driven by increasing penetration in the emerging markets and ongoing replacements in the
mature markets.
 Asia-Pacific would account for majority of the global mobile phone demand primarily due to first-
time smartphone users. A high percentage of the demand in Asia-Pacific region is expected to be
met by Chinese OEMs, such as Xiaomi, Oppo, Huawei and Lenovo, who after successfully
capturing the domestic market, are looking to replicate their success outside of their local
markets.
 The mobile phone shipments in North America would witness flat growth due to maturity in the
market.

Indian market potential

Indian smartphone market volume (in mn)

20.8%

257
100
Source: IDC
2015 2020
 Indian smartphone shipments are expected to grow at a robust rate of 20.8% during 2015 to 2020
as compared to global shipments, indicating high potential for the market.
 This is due to low smartphone penetration as compared to mature economies and declining
ASPs of LTE capable smartphones. Further, low penetration of PCs and a deficient fixed
broadband network, would also make smartphones the driver of next phase of internet growth
in the country.
 In 2016, India became the second largest smartphone market in terms of active unique
smartphone users (220 million users), after the US.

Page 5
Growth Drivers

 Due to intense competition, ASPs of the smartphones have

Availability of been declining over the years, making them increasingly
low-priced, affordable for the mass market.
 As a result, the local vendors are producing sub-10,000 phones
high quality with high-end features to increase the penetration especially in
smartphones rural areas.

 The percentage of the 3G/4G subscribers as a percentage of

total mobile phone subscribers is expected to increase to 21%
Demand for in 2016 from just 7.5% in 2013.
3G/ 4G LTE-  This is because 3G ecosystem in the country has developed
rapidly, and the prices of the service have come down sharply.
enabled mobile
 4G is also facing lot of traction, with telcos scooping up
phones spectrum to roll out services on a large scale. This is driving
demand for 4G LTE-enabled mobile phones exponentially.

Penetration of  As China’ smartphone market has almost saturated, Chinese

Chinese players are looking for avenues to leverage on India’s growth
potential.
players in
 They are offering high specification phones at discounted prices
Indian market, via online route (without setting the complex distribution
especially via network), thereby giving tough competition to the local vendors.
online route

 The emergence of dual-SIM mobile phones has been a game

Emergence of changer for the Indian mobile phone industry, as these phones
allow consumers to take advantage of the price arbitrage in
dual SIM tariffs offered by different operators.
mobile phones  Furthermore, these mobile phones enable consumers to do
away with the need to carry two mobile phones.

Evolving  With increase in average income, consumers are spending

highly on communications with its share in average household
Consumer consumption to increase from 1% in 1995 to 6% in 2025E.
Behaviour;  Further, the upcoming technologies are pushing mobile phone
high product players to shorten the product life cycle and launch new
products frequently for first-time and replacement consumers.
refreshal rate

Page 6
Gujarat - Competitive
Advantage
Ease of doing Established Flourishing
business infrastructure economy

 Gujarat ranked first  Located on the west coast  Gujarat contributes

in ease of doing of India, Gujarat is well 7.2% of the Nation GDP
business as per connected to the major and shows leadership
DIPP report 2015. cities of the world by air in many areas of
and sea routes. manufacturing and
 Only state which infrastructure sectors.
comply 100% with  The state has 45 ports, 12 Gujarat’s SDP (State
environmental domestic airports and 1 Domestic Product) at
procedures. international airport in current price registered
addition to an extensive rail a growth of 11% during
 Gujarat fares highly and road network.
when it comes to the year 2014-15.
setting up a  Gujarat is the one of the  Gujarat has attracted
business, allotment power surplus states in the cumulative FDI worth
of land and country as a result it USD12 billion from April
obtaining a helping in bringing huge 2000 to March 2015.
construction permit. amount of investment from
 Gujarat ranked No.1 the industries and tagged  Gujarat contributes
as preferred investment around 19.1% to India’s
in e-transactions for
destination in the country. total exports of goods in
government services
2014-15

High availability of skilled manpower (engineers)

Engineering seats in Gujarat – by
specialisation (2016-17)  In 2016-17, Gujarat had ~134
Others 2,718 engineering degree colleges with an
intake of ~68,000 students per year.
Auto 2,202
Leading engineering colleges in Gujarat:
Chem 2,220  Indian Institute of Technology (IIT),
IT 4,857 Gandhinagar
Electronics 5,607  Sardar Vallabhbhai National Institute of
Technology, Surat
Electrical 9,611
 Gujarat Technological University,
Computer 10,224 Ahmedabad
Civil 12,114  Nirma University - Institute of Technology,
Mech 18,028 Ahmedabad
Total seats: 67581
Source: Gujarat Technical University
The state prides itself in quality workforce and peaceful workforce accounting for only 0.5%
of mandays lost while having contributed 16% of India’s industrial production.

Page 7
Electronics and IT SEZ
in Gujarat
IT/ITeS and electronics regions
 Gujarat Government enacted the Special investment regions (SIR) act in 2009 with the objective
of creating large size investment regions in the state and develop them as global hubs of
economic activity supported by world class infrastructure.
 The state has three SIRs for electronics manufacturing.

 SEZ are special duty free enclaves for the purpose of trade. These zones are self-contained and
integrated, having their own infrastructure and support services. Apart from state-of-the-art
infrastructure and access to a large skilled work force, the SEZ also provides enterprises with
attractive incentives.
 The state has one electronics SEZ at Gandhinagar and 14 IT/ITeS SEZs - six at Ahmedabad,
four at Gandhinagar, three at Vadodara and one at Valsad.

Ahmedabad

Gandhinagar

Viramgam
Halol-Savli
Vadodara
Tourist Navlakhi
Electronics SIR flow*
IT/ITeS SEZ
Electronics and IT/ITeS SEZ Valsad

Promotion of IT/ITeS and electronics industries

 Gujarat Government introduced a new IT policy to provide a proactive and industry-friendly
climate for the IT industry. Incentives and assistance would be provided in allotment of land,
development of IT/ITeS parks, stamp duty concession, electricity duty exemption and capital
assistance on lease rentals.
 The policy also intends to establish the state as a preferred IT destination for micro, small and
medium enterprises (MSMEs) by providing assistance on quality certification, technology
acquisition fund, skill enhancement, patent assistance, simplification of labour laws, subsidy
on bandwidth for connectivity and exemption from zoning regulations.
 Gujarat Government introduced new Electronics policy with the aim of establishing a self-reliant
ESDM industry that caters to needs of domestic and international market. The policy includes
development of human resources, creation of local demand for electronics products, creation of
eco-system for innovation and R&D, and incentives such as VAT/CST subsidy, single window
clearance, uninterrupted power supply, registration and stamp duty concession and interest
subsidy.
 Gujarat Government, recognising the need for additional support for Electronics & IT/ITeS start-
ups and keeping this at the centre of its strategy as recognized by the Government of India,
through ‘Start-up India initiatives and to supplement efforts in that direction has decided to come
up with a focused policy for Start-ups in Electronics & IT/ITeS sector.
Page 8
Project Information

Electronic Manufacturing Clusters (EMCs) in Gujarat

Ahmedabad

Vithalapur

Gandhinagar
Sanand

Halol

Vadodara
Jambusar
Tourist
flow* Bharuch
Greenfield EMCs
Brownfield EMCs
Upcoming Greenfield

Location suggested
 Gandhinagar is a capital city of Gujarat
state and has seven special economic
zones and 10 industrial estates along
Key highlights with creative IT Park and Gujarat
International Finance Tech City (GIFT)
4 (Mansa, Kalol, Dahegam,
Talukas  It is considered as an emerging
Gandhinagar)
‘Knowledge Hub’ with the establishment
Gram of various educational institutes such as
302
panchayats IIT and IIMs.
 Various computer hardware
Area 2140 sq. km
associations such as Gandhinagar
Population 13,91,753 Computer Hardware Association
(GCHA) and Gujarat Informatics ltd
Literacy rate 85.77% (GIL) have their presence in
Gandhinagar.
Focus areas Electronics, textiles, IT -ITES  Gandhinagar has been selected as one
of the 100 Indian cities to be developed
as a smart city under PM Narendra
Modi’s flagship Smart Cities Mission.

Reasons for selecting Gandhinagar

Page 9
Project Information
Infrastructure Availability
Logistics & Connectivity
™ Gandhinagar has an extensive outlay of existing infrastructure - rail, road and air - which make it
an excellent investment destination.
Rail
 Gandhinagar is well connected to the
metropolitans of western India. Many
trains with Mumbai as their destination
pass through Gandhinagar, which
facilitates an easy flow of tourists from
all over the western India.
Air
 Sardar Vallabhbhai Patel International
Airport located in Ahmedabad is 18 km
away from Gandhinagar and provides
connectivity with domestic flights to
the Metropolitans and other major
cities of India. It also offers
international flight connectivity to
major countries across the world.
 Utility
Water
 Gujarat has a state-wide “water supply
grid” spread across 1,20,769 km that
aims to serve 75% of Gujarat’s
population.
 Gujarat Industrial Development
Corporation (GIDC) is responsible for
ensuring consistent water supply in
industrial areas
Page 10
Road
 Gandhinagar is connected to Surat,
Mumbai, and Navi Mumbai through
National Highway 8A. It is connected to
Ahmedabad, Jaipur, Udaipur, New Delhi
and Chandigarh via National Highway
8C.
Port
 Gandhinagar is connected to the
following ports:
 Dahej – 262 Km
 Kandla – 306 Km
 Mundra – 367 Km
Power
 The state is self-sufficient in power with its
present generating capacity of 23,973 MW
(including about 4,385 MW of renewable
energy).
 Gujarat boasts of 24 hour – 3 - phase
uninterrupted power supply
Project Information
Value chain
Mobile phone manufacturing process
 Mobile phone manufacturing is an interplay between the design aspect, the components and the
manufacture of the device. India houses number of mobile phone companies that have
developed a large local manufacturing base and are manufacturing through a mix of local
production and assembly.
 While most of the manufacturing happens in CKD/SKD (completely knock down/ semi knock
down) form with some level of localization, high-end products are imported in CBU (completely
built unit) form. Presently, most of the localization takes place in the last mile assembly stage.

Mobile phone manufacturing value chain

Manuf
Mark
Design Sourcing acture/ Configura Distribution
R&D, IP eting
service and system tion and and repair
ownership and
s fabrication assem testing services
sales
bly

Activities

IP reusability Form factor Printed Manufacturing/ Configuration Packaging Product

/ IP
management design circuit board assembly of of the final Logistics marketing
New IP / Device fabrication the final product Fulfilment Sales and
architecture architecture Component product Systems channel
After-sales
development Specification sourcing Complex integration management
services
assessment mechanical Testing (product Branding and
assembly Software upgrades, campaign
loading reverse management
logistics,
Component
refurbishment,
repair,
warranty)

Key stakeholders
EMS provider / OEMs*

Suppliers (Raw Testing

OEMs / Plant equipment Distributors/
ODMs* material, equipment Distributors
ODMs suppliers OEMs
component) suppliers

*OEMS: Original equipment manufacture

*ODMS: Original design manufacturer
*EMS: Electronics manufacturing services

Page 11
Project Information
Key players
Major players across the mobile phone manufacturing value chain

Stakeholders Major players

sales
Mark
eting
and

Global: Microsoft Indian Intex Karbonn

OEMs Samsung Micromax Lava Spice

LG
Distribution
and repair
services

Global Players with presence Indian Players:

in India:
Configura

Dixon
tion and
testing

Foxconn SFO Technologies

Jabil Elin India
EMS Flextronics Rangsons
providers Sanmina SCI Centum

Kaynes
assembly
Manufact

system
ure/
fabrication
Sourcing
and

Component Salcomp SoftTouch Vishay Dakshin Lite-On

suppliers Sterlite Amphenol components Speakers Mobile
services
Design

Inventec
ODMs
ownership
R&D, IP

Global: Microsoft Indian Intex Karbonn

OEMs Samsung Micromax Lava Spice

LG

 India is a house for multiple global and local players across the various stages of mobile phone
manufacturing ecosystem.

Page 12
Project Information
Key components
Key components involved in mobile phone manufacturing

Display unit/
Touchscreen
Printed Circuit Board

Passive
components*
Antennas

Battery

Connectors

Camera Module

Keypads

Baseband/
semiconductors

Plastic and metals

Memory

Acoustics

Charger

These 5 (PCB, Connectors, Antenna, Plastics and metals, Keypads) form a part of
Electromechanical components
*Passive components include High precision resistors, capacitors and inductors
Page 13
Project Information

Current scenario of mobile phone manufacturing in India

Mobile phones Value of mobile phones

 With the progress of manufactured in India (INR Cr)
manufactured in India
government’s ‘Make
in India’ initiative,
the production of 60
54,000
mobile phones grew
17
tremendously from
18,881
60 million in FY15 43 50
to 110 million in
FY16. FY15 FY16 FY15 FY16

Smartphone Feature phone Source: Teleanalysis

Manufacturing plans of some other mobile phone players

Area (sq Initial investment

Occupier Location Capacity
meter) (INR Cr)

Celkon 2,787 Hyderabad 0.6mn/ month

Karbonn Hyderabad 450 2 mn/ month

Videocon West Bengal 50 0.25 mn/month

Potential collaboration opportunities

Collaboration between mobile phone OEMs and contract manufacturers:

 Global and Indian OEMs can either setup their own manufacturing units or can outsource the
manufacturing of mobile phones to contract manufacturers to realize cost benefits.

 For instance, many mobile phone players such as Apple, Gionee, Oppo, Xiaomi, Asus and
Huawei are looking to manufacture in India by partnering with contract manufacturer such as
Foxconn and Dixon, instead of setting their own units, which require high capital investment.

Page 14
Project Financials

Estimated project cost

Project specifications Cost (INR Cr) % of overall cost
Land 18.6 9.0%
Site area: 15 acres (60,702 sq. mtr.)
Rate: INR3,070 per sq. mtr. as of June 2016
Building 26.2 12.7%
Area: 6 acres (24,281 sq. mtr.)
Rate: INR10,826.184 per sq. mtr.
Equipment and machinery 132.0 63.8%
Utilities and other fixed assets 15.8 7.5%
Pre-operative and miscellaneous expenses 4.1 2.0%
Contingency costs 10.3 5.0%
(to cover for an increase in the estimated cost
for the proposed project)
Total initial investment 207 100%

Hence, initial investment of ~ INR 207 Cr is required to setup the unit with initial capacity of
1.8 mn mobile phones/ month (feature and smartphones) which can be expanded in future

Project specification Definition/ What it includes?

component
Land Includes land acquisition cost

Building Includes construction cost for the manufacturing plant

Equipment and Itincludes:

machinery  Surface Mount Technology (SMT) lines: Enables mounting of the
components onto the surface of PCBs, and soldering the joints.
 Box-build assembly: Assembly of external components such as
antennas, camera lens and batteries to the surface mounted PCBs.
 Testing equipment: Enables testing/ running quality control on the
product at various stages in the manufacturing process.
Utilities and other fixed These include utilities relating to the manufacturing such as power
assets generation equipment, voltage stabilization devices, water treatment plant,
compressed air systems, vacuum and fire control systems.
Further, it includes security accessories such as CCTVs, access control
systems and anti-intrusion systems, and other amenities such as furniture,
communications equipment, and office related equipment.
Pre-operative and These include fees paid for technical studies to engineers, legal expenses
miscellaneous paid to legal counsels, insurance advisor’s fees, employee expenses on
expenses recruitment, training and salaries and consultancy fees.

Page 15
Approvals / Incentives

Approvals Required

• For approvals, the project report should be submitted to respective District Industries Centres
(DICs). DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval.

Incentives from Government of Gujarat

Government of Gujarat introduced Electronic Policy for the state of Gujarat (2016-2021) in order
to establish Gujarat as a globally-recognized hub for the ESDM industry with a turnover of USD16
billion by 2021 and an investment of USD6 billion to create employment opportunities for 500,000
people by 2021.

In addition to the assistance available under any of the schemes of the Government of India,
eligible EMC and ESDM units will be entitled to the following assistance from Government of
Gujarat:

Incentives to the Electronics Manufacturing Clusters (EMCs)

Capital assistance to the greenfield EMCs

Eligible area for greenfield EMCs Admissible Maximum limit
assistance (INR crores)
Area less than 200 acres 25% 25
Area more than 200 acres 25% 100

Stamp duty and registration fee reimbursement

• Developers of greenfield EMCs will be entitled to 100% reimbursement of the stamp duty as well
as registration fee paid by them to the Government of Gujarat, towards lease/sale/transfer of
land for the EMC.

Uninterrupted availability of power and power tariff subsidy to EMCs

• Government will contribute towards the cost of setting up feeder or sub-station (subject to a
ceiling of INR5 crores) in order to provide uninterrupted and good quality power supply to the
EMCs.
• Power tariff subsidy will be given at INR1 per unit in the billed amount for a period of five years
as promotional incentive on reimbursement basis. The subsidy will be applicable only when
electricity will be purchased from the state electricity / power distribution licensee.
• EMCs will be given 100% reimbursement for electricity duty paid for a period of 5 years from the
date of approval of EMC.

Page 16
Approvals / Incentives

Incentives to the ESDM units

Capital subsidy to the eligible ESDM units

Gross fixed capital investment (GFCI) Admissible Maximum
subsidy limit
(INR crores)
Investment up to INR10 crore 10% 1
Investment above INR10 crore but up to INR1 crore + 5% incremental 25
INR1000 crore GFCI above INR.10 crores
Investment above INR1000 crore INR25 crore + 5% incremental 100
GFCI above INR1000 crores

Interest subsidy for a maximum period of five years to the eligible ESDM units
Borrowings Admissible Maximum
subsidy per annum limit per
annum
(INR crores)
Up to INR10 crore 7% 1
Above INR10 crore but up to INR1000 crore INR1 crore + 2% of borrowings 5
in excess of INR10 crores
Above INR1000 crore INR5 crore + 1% of borrowings 10
in excess of INR1000 crores

Reimbursement of stamp duty and registration fee

• Eligible ESDM units will be entitled for reimbursement of 100% of stamp duty and registration
fee paid to the Government of Gujarat for lease/sale/transfer of land for the first transaction.

VAT/CST incentives: (subject to change after the introduction of GST)

• The eligible ESDM units will be provided reimbursement of net tax paid under Section-13 of
Gujarat Value Added Tax Act and 100% of Central Sales Tax (CST) for domestic sales outside
Gujarat, limited to a ceiling of 90% of the GFCI made by the unit, for a period of 10 years.

Other exemptions
• Eligible ESDM units will be given power tariff subsidy at the rate of INR1 per unit in the billed
amount and 100% reimbursement for electricity duty, for a period of five years.
• Eligible units will be given the benefit of reimbursement of the EPF contribution made by them
for their employees for a period of five years subject to overall ceiling of INR1 crore per annum.
• Patent Assistance at the rate of 50%, subject to a ceiling of INR0.2m per patent for domestic
patents and INR0.5m per patent for international patents, for meeting the expenditure for
obtaining patents.

Page 17
Approvals / Incentives

Incentives from Government of India

Modified Special Incentive Package Scheme (MSIPS)
• The scheme provides capital subsidy of 20% in SEZ (25% in non-SEZ) for units engaged in
electronics manufacturing. It also provides for reimbursements of non-creditable excise for
capital equipment for the non-SEZ units.
• Reimbursement of central taxes and duties for 10 years in select high-tech units such as fabs,
semiconductor logic and memory chips, LCD fabrication.

Electronic Manufacturing Clusters (EMC)

• The GoI will provide financial assistance of up to 50% of the project cost (subject to a ceiling of
INR500 million for every 100 acres of land) for the development of greenfield EMCs, and 75% of
the project cost (subject to a ceiling of INR500 million) for brownfield EMCs.

Electronics Development Fund (EDF)

• In December 2015, the GoI announced setting up a special EDF worth INR100 billion to help
generate an R&D ecosystem in electronics in India. The fund aims to boost IP generation and
large-scale manufacturing of electronic goods in the country.

Preferential Market Access (PMA)

• In 2013, the GoI introduced PMA to give preference to locally manufactured electronic products
in Government procurement (applicable to all ministries except Defence). The GoI procurement
will not be less than 30% of the procurement value, with specified value addition requirements.

Additional incentives for semiconductor manufacturing

• In the Union Budget 2016-17, BCD and SAD have also been exempted on machinery, electrical
equipment, other instruments and their parts (except populated Printed Circuit Boards) for use
in semiconductor wafer fabrication/LCD fabrication and Assembly, Test, Marking and Packaging
of semiconductor chips (ATMP) units.
• According to Semiconductor Policy, the following incentives are provided for the manufacturer of
semiconductors, displays including Liquid Crystal Displays (LCDs), Organic Light Emitting
Diodes (OLEDs), Plasma Display Panels (PDPs) and any other emerging displays, storage
devices, solar cells, photo voltaics, other advanced micro and nanotechnology products, and
assembly and test.
Type of unit Threshold NPV of Incentive in SEZ Incentive in Non- SEZ
investments

Fab unit INR2,500 crore 20% 25% + exemption from CVD

Eco-system unit INR1,000 crore 20% 25% + exemption from CVD
Note: (Incentive in % of capital expenditure); CVD is Countervailing Duty

Page 18
 Ministry Of Electronics And Information Technology
http://meity.gov.in/
India Electronics & Semiconductor Association

http://www.iesaonline.org/
Department of Science & Technology, Government of Gujarat
http://www.dst.gujarat.gov.in
Gujarat Industrial Development Corporation
www.gidc.gov.in

Office of Industries Commissioner

www.ic.gujarat.gov.in

Industrial Extension Bureau

www.indextb.com

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Department of Science and Technology

Block No.7, 5th Floor,
New Sachivalaya, Gandhinagar
Phone / Fax : 079-23259999
Email: secdst@gujarat.gov.in
https://dst.gujarat.gov.in/index.htm