Andhra Pradesh Electronics Manufacturing Policy (4.0) 2024-29

Andhra Pradesh Electronics Manufacturing Policy (4.0) 2024-29 is a Government of Andhra Pradesh policy implemented through the Information Technology, Electronics & Communications (ITE&C) Department, notified on 30 October 2024, and valid for a period of 5 years.

The policy aims to position Andhra Pradesh as a premier destination for Electronics System Design and Manufacturing (ESDM) by attracting investments, building a complete electronics value chain, promoting innovation, and generating large-scale employment. For you as an MSME or startup, this policy provides strong financial incentives, infrastructure support, and ecosystem advantages to scale in electronics manufacturing.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Achievements of Scheme
Application Process

Key Features

Complete electronics value chain development: Covers semiconductor, components, devices, and e-waste processing.
Focus on emerging technologies: Promotes AI, IoT, Industry 4.0, and advanced electronics manufacturing.
Cost reduction for industries: Focus on reducing power, logistics, and infrastructure costs.
Strong MSME support: Dedicated initiatives and funding for MSMEs and startups.
Cluster-based ecosystem: Development of Electronics Manufacturing Clusters (EMCs).
Global investment attraction: Focus on FDI and global electronics companies.
Export-oriented growth: Leveraging ports and logistics for exports.
Employment generation focus: Target to create 5 lakh jobs in electronics sector.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
Capital Subsidy	20%-30% of Eligible Fixed Capital Investment (EFCI)**	Example: MSME invests ₹1 crore → receives subsidy based on category.
Employment Incentive	Additional 5% subsidy (based on employment ratio)**	Example: Higher employment → higher incentive.
Value Addition Incentive	Additional 5% subsidy	Example: More local value addition → extra benefit.
Power Cost Reimbursement	₹1 per unit for 5 years	Example: Reduces electricity cost significantly.
SGST Reimbursement	100% net SGST for 5 years	Example: GST paid is refunded improving cash flow.
Stamp Duty Reimbursement	100%	Example: Full refund on land registration and lease.
Recruitment Assistance	₹4,000-₹6,000 per employee/month (6 months)**	Example: Hiring support for new employees.
Tailor-made Incentives	For Mega/Ultra Mega projects	Example: Custom incentives for large investments.

Eligibility Criteria

Applicable to new and existing electronics manufacturing units
Must be located in Andhra Pradesh
Applicable for new investments and expansion projects
Must fall under defined investment categories:
Sub-Large: ₹50-200 Cr
Large: ₹200-1000 Cr
Mega: ₹1000-5000 Cr
Ultra Mega: ₹5000+ Cr
Must commence production within defined timelines

Additional conditions:

Total incentives capped at 75% of Eligible Fixed Capital Investment

Non-eligibility conditions:

Non-electronics businesses
Non-compliant or unapproved projects

Documents Required

Company incorporation / MSME registration certificate
Detailed Project Report (DPR)
Investment proof (plant & machinery)
Land documents / lease agreements
Approvals and clearances
Employment and production details

Achievements of Scheme

Target to achieve USD 50 billion production in electronics sector
Attract USD 10 billion investment during policy period
Creation of 5 lakh employment opportunities
Development of electronics clusters and industrial corridors
Strengthening of MSME participation in electronics ecosystem

Application Process

Option 1: Apply with Bullit, Recommended

Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.

Option 2 : Apply Online (Government Process)

Register on Andhra Pradesh Single Desk Portal
Submit electronics manufacturing project proposal
Apply for approvals (land, power, compliance)
Select applicable incentives under Electronics Policy
Upload required documents
Submit application
Evaluation by ITE&C Department
Approval by State Investment Promotion Board
Disbursement of incentives in phases
Track application status online