Andhra Pradesh approves Electronics Policy 4.0; Syrma SGS, Dixon likely among key beneficiaries

The policy, valid till 2030, is expected to benefit Indian electronics manufacturing companies

The Andhra Pradesh Cabinet has approved the Electronics Component Manufacturing Policy 4.0, offering a comprehensive package of incentives to attract large-scale investments in electronics component manufacturing. The policy, valid till 2030, is expected to benefit Indian electronics manufacturing companies such as Syrma SGS and Dixon Technologies, with Syrma SGS set to be the first major applicant.

Sources told Moneycontrol that Syrma SGS, which had been awaiting the announcement of the policy, will submit its proposal for approval next week. "Now their proposal will go next week for approval with the large subsidy/incentive package," the sources added.

Syrma SGS is emerging as the policy’s flagship investor. It plans to establish India’s largest printed circuit board (PCB) plant and copper clad laminate factory, with an estimated investment of Rs 1,800 crore.

The facility will be developed in collaboration with South Korea’s Shinhyup Electronics, which will bring technological expertise to the project. Sources confirmed that the proposal, which hinges on the newly launched policy incentives, is scheduled to be taken up for approval next week.

Early Bird Incentive

A major attraction of the policy is the Early Bird incentive, designed to fast-track investments in the sector. The first 10 projects with a minimum committed investment of Rs 250 crore over five years will be eligible for a capital subsidy of 50 percent of eligible investment, disbursed in two equal annual instalments.

Additionally, the Andhra Pradesh government has committed to offering a 100 percent matching subsidy corresponding to the amount approved and released by the central government under the Electronics Components Manufacturing Scheme (ECMS). This state-level incentive will be disbursed within six months of the central disbursement. However, companies availing the Early Bird incentive will not be eligible for the matching subsidy.

Additional Fiscal Support

The policy also includes substantial operational incentives, including land at a 75 percent discounted rate, 100 percent electricity duty exemption for six years from the date of notification, power cost reimbursement, net State Goods and Services Tax (SGST) reimbursement, stamp duty reimbursement, and recruitment assistance, in line with the Andhra Pradesh Electronics Policy 4.0 or any future revisions.

With electronics component manufacturing increasingly seen as a strategic sector, Andhra Pradesh’s latest policy move may boost the domestic ecosystem.