Manufacturing of

CCTV cameras

Electronics and
Hardware
Government of Gujarat
Contents

Project Concept 3
Market Potential 6
Growth Drivers 8
Gujarat Competitive Advantage 9
Project Information 10
- Project Location
- Infrastructure Availability/ Connectivity
- Raw Material Suppliers
- Key and Emerging Players
- Potential Collaboration Opportunities
- Key Considerations
Project Financials 15
Approvals & Incentives 17
Key Department Contacts 21

Page 2
Project Concept

CCTV Overview
 Closed-circuit television (CCTV), also known as video surveillance, is the use of video cameras
to transmit a signal to a specific place, on a limited set of monitors.
 CCTV systems have cameras linked to a video controller and users have the access control
tools like badges, tokens, or fobs connected directly to the identity and access management
system.

Classification of CCTV Market

Technology Components Services

Analog-based CCTV Network Video

system Recorder

Network Camera
IP-based CCTV
system
Video analytics

Wireless-based
CCTV system Video servers

Video management
software

 Major use of CCTV is in powerful continuous surveillance system. Todays modern CCTV comes
along with Digital video Recorders [DVRs].
 CCTV cameras have with two types of video recorders (i) DVR - Digital video recorder and (ii)
NVR - Network video recorder that comes generally with IP cameras.

Page 3
Project Concept

CCTV Types
 Bullet: A bullet CCTV camera is a wall-mount or ceiling-mounted unit
that is typically designed for indoor use, but can also be fill some outdoor
applications.

 Dome: A dome cameras get their name from the dome-shaped housing
in which they sit. These housings are designed to make the cameras
unobtrusive not covert or hidden. Typical applications are retail, where
the camera is designed to be unobtrusive, but visible.

 Covert/Desktop/Board Cameras: These tiny cameras are well suited

for desktop use for Skype and other low-resolution teleconference
applications.

 Discreet Cameras: These are just some of the disguises for covert
cameras. The covert cameras can also be characterized by conventional
cameras placed in discreet locations.

 Infrared/Night Vision: These night-vision cameras have the ability to

see images in pitch black conditions using IR LEDs. In some cases they
are for mobile applications.

 Outdoor: The key to outdoor cameras is the housing itself, which must
be impenetrable to moisture, insects, dust and other elements.

 Day/Night: Day/night cameras compensate for varying light conditions to

allow the camera to capture images. These are primarily used in outdoor
applications where the security camera is positioned for an outdoor
parking lot.

Page 4
Project Concept

CCTV Types
 Varifocal: A camera with a varifocal lens allows the operator to zoom in
or out while still maintaining focus on the image.

 Network/IP: These cameras, both hardwired and wireless, transmit

images over the Internet, often compressing the bandwidth so as not to
overwhelm the web. IP cameras are easier to install than analog
cameras because they do not require a separate cable run.

 Wireless: The wireless cameras are, IP cameras that use alternative

mode of wireless transmission. Irrespective of the transmission method,
the primary benefit to these units is extreme flexibility in installation.

 PTZ/Speed Domes: Pan/tilt/zoom cameras give the surveillance

operator the ability to move the camera left or right (pan); up and down
(tilt); and zoom the lens closer or farther. These are relegated to
surveillance situations where there is an actual live guard or surveillance
specialist monitoring the images.

 High-Definition Cameras: Ultra high-definition cameras are often

relegated to niche markets, such as casinos. These give the operators
the ability to zoom in with extreme clarity (to look at poker players, for
example, who might have something up their sleeve).

Page 5
Market Potential

Global video surveillance market overview

Global Surveillance and Security  Global Surveillance and Security
Equipment Market 2014-2019 (US$ billion) Equipment (GSSE) market can be
segmented on the basis of product
as:
100.4
 Electronic Access Control
86.5 Systems,
74 7
74.7
65.5  Electronic Article
58.4 Surveillance Systems,
53.1
 Surveillance Systems, and
 Perimeter Intrusion
Prevention Systems
 Key end-industries of the GSSE
market include:
2014 2015 2016 2017 2018 2019  Government Organizations
 Retail Sector
Source: Technavio
 Transportation Sector
 The Global Surveillance and Security Equipment
(GSSE) market is expected to grow at a CAGR of 14%  Education Sector
to reach over US$100 billion by 2019.  BFSI Sector

India video surveillance market overview

 India video surveillance market is expected to India video surveillance systems
reach US$2.43 billion by 2020. market (US$ million)
 Growing adoption of IP based surveillance
system in government projects, transportation
sector, and increasing IT spending will drive the
growth of this market in India.
 Traditionally controlled by analog based
surveillance systems, Indian market is now 952.9
shifting towards digitized i.e. IP based 233.5
surveillance systems.
 Besides CP Plus, other companies which are
present in the CCTV market in India include 2011 2016E
Hikvision (10% market share), Dahua (7%), Source: 6WResearch
Panasonic (2.5%), Bosch Security Systems,
Samsung Techwin, DV Tel (all 2%).
 The CCTV manufacturers in India are now focusing on the residential market in-order to cater
the home security needs.
 The use of CCTV cameras has improved policing in the country. Thus, a large demand from
police departments is expected for improving homeland security.

Page 6
Market Potential

CCTV Market Growth Sector in India

ITeS &
Software

Banking and
Financial Homeland
Services Security

CCTV
Educational Potential Government
Institutions Institutions
Markets

Special
Retail Mall and Economic
Multiplexes Zones (SEZs)

Construction,
Residential and
Commercial
Complexes

 Indian CCTV Camera market is expected to grow with a CAGR of about 27.16% in the period from
2016 to 2021.
 The Indian CCTV market is attracting bigger CCTV companies such as Sony, Samsung, Zicom
Electronic Security, Vintron Informatics Limited and many others.
 Government/public sector demand remains high for the overall security followed by Industrial and
commercial sector.
 The growth in the CCTV market is driven by the growing awareness among different end user
segments.

Page 7
Growth Drivers

 Mobile phone manufacturers have introduced high-end phones with

online video live streaming. This will enable the real-time
Growing
connection of mobiles and CCTV.
penetration of
 India smartphone market is estimated at 40 million units and is
smartphones forecasted to grow to 216 million units by 2020.

 The frequency and intensity of security breaches and security

Growing attacks have increased over the years. To reduce these criminal
deployment of activities, governments and large enterprises are increasingly
security implementing surveillance solutions.
equipment's  Prompted by fears of domestic terrorism, CCTV surveillance has
been instigated.

 Inventory shrinkage is one of the issues faced by the retail sector

because of shoplifting, employee theft, and vendor fraud.
Increased  A video surveillance system allows capturing, aggregating,
demand from interpreting, analysing, and reporting losses from stores.
retail and  Corporates have to conform to certain basic security requirements
corporate for the purpose of insurance. They are also employing video
analytics and security systems as a means to measure productivity
or even measure product utilization.

 There is a major standardisation of various monitoring

technologies, it helps in the use of video surveillance over the
Advances in existing corporate IP network without any need for dedicated
products and cables, switches, and recording infrastructure.
services  Advances in technology and products are expected to propel the
growth with the introduction of cost-effective and sophisticated
products for end-users
 Open Network Video Interface Forum (ONVIF ) standard will
benefit the market by providing interoperability, flexibility, future-
proof, and quality.

Page 8
Gujarat - Competitive
Advantage
Ease of doing Established Flourishing
business infrastructure economy

 Gujarat ranked first in
ease of doing
business as per DIPP
report 2015.
 Only state with 100%
compliance with
environmental
procedures.
 Gujarat was ranked
as the best in e-
transactions for
government services
 It was also ranked as
the best in terms of
setting up a business,
allotment of land and
obtaining a
construction permit.
 Located on the west coast
of India, Gujarat is well
connected to the major
cities of the India and to the
rest of the world by air and
sea routes.
 The state has 40 ports, 13
domestic airports and 1
international airport in
addition to an extensive rail
and road network.
 Gujarat is the one of the
power surplus states in the
country. This helps it in
attracting huge amount of
investment from the
industries and tagged as
preferred investment
destination in the country.
 Gujarat contributes 7.2%
of the Nation GDP and
shows leadership in
many areas of
manufacturing and
infrastructure sectors.
Gujarats GSDP (Gross
State Domestic Product)
at current prices
registered a growth of
11% during the year
2014-15.
 Gujarat has attracted
cumulative FDI worth
US$12 billion from April
2000 to March 2015.
 Gujarat contributes
around 19.1% to Indias
total exports of goods in
2014-15.

Gujarat government is planning to establish a comprehensive CCTV camera network at its

ports for providing uninterrupted surveillance along its coast. Alongside, government is
planning to install CCTV cameras to ensure better road safety with zero black spot policy.

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

Page 9
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 10
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
Modis flagship Smart Cities Mission.

Reasons for selecting Gandhinagar

Page 11
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
metropolitan cities 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 metropolitan cities and other major
cities of India. It also offers
international flight connectivity to
major countries across the world.
Utilities
Water
 Gujarat has a state-wide water supply grid
spread across 1,20,769 km that aims to
serve 75% of Gujarats population.
 Gujarat Industrial Development Corporation
(GIDC) is responsible for ensuring
consistent water supply in industrial areas.
Page 12
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 through 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

Video surveillance equipment manufacturing value-chain

Inspection of raw materials,

components and sub-assemblies

Mounting of PCBs, sub-assemblies,

CCD Camera, switches and sockets in
the cabinet

Inter-connecting the PCBs, sub-

assembly and CCD Camera

QA/QC check, packing and dispatch

Note: Precautions in respect of CMOS (complementary metal-oxide semiconductor) ICs should be

taken care of while mounting/soldering IC on PCB/Chassis.

Raw material providers

Continental Devices India Ltd New Delhi
Muktagiri Enterprises Mumbai
Precision Electronic Components Manufacturing Company Hyderabad
M/s Emaar Impex (P) Ltd. Mumbai
M/s Omron Electronics Components (P) Ltd. Bangalore
M/s R.S. Components & Controls (I) Ltd. New Delhi
M/s Avomech Commercial (I) Private Limited Kolkata
M/s Thakur Estate Mumbai
Calcutta PCB Printers Kolkata

Note: Most of the sub-assemblies like Printed Circuit Board (PCB) with components; Charge-
Coupled Devices (CCD) Camera etc. are imported from China, Taiwan, Japan, etc.

Page 13
Project Information

Key machinery providers

Audiotec Instruments equipment Pune
Vaiseshaka Instruments Ambala Cantt
Aplab Limited Kolkata
Phillip's India Kolkata
International Electronics Mumbai
Electromech Bangalore
Lalani International Guwahati
M/s. Microtek International Limited Delhi
Sumitron Exports Pvt. Limited New Delhi
Advance Tech Services New Delhi
Inde Enterprises Chandigarh

Potential Collaboration Opportunities

Collaboration between CCTV camera OEMs and contract manufacturers:
 Global and Indian Original Equipment Manufactures (OEMs) can either setup their own
manufacturing units or can outsource the manufacturing of CCTV cameras to contract
manufacturers to realize cost benefits.
 CCTV camera players can partner with global players like Sony, Samsung and Bosch, as
contract manufacturer, instead of setting their own units, which require high capital investment.

Key considerations
 Lack of end-to-end solution providers and components. Components of the CCTVs are not
locally available. 70% of the components are sourced from either China or Taiwan.
 Leading OEMs are unwilling to transfer cutting edge technologies with limited management
control in the Indian entity.
 24/7 availability of power and network bandwidth are key problems in deployment of the system.
 Video based surveillance systems requires heavy storage and continued mantainence.
 Storing low-resolution video online can reduce storage requirements but also reduces
effectiveness of the video.

Page 14
Project Information

Key Players and Suppliers

Company Product offerings
CP plus is a German company offering advanced security and surveillance
solutions. High Quality Image Sensor, Optical Zoom, Built in Alarm and High
CP Plus Resolution are some of the features that made CP Plus the leader in this
segment. Dome, Box, Zoom and Bullet are some of the types of camera
made by the company.
The company offers Turbo HD Camera, DIS Camera and CCD Camera are
Hikvision Digital
some of the variants of Hikvision CCTV camera. CMOS Sensor, Real time
Technology
Recording, HD Turbo Technology and Auto Gain Control are some of the
Company Limited
features of Hikvision camera.

Zicom Electronic The company offers Box Camera, Dome Camera, IR Bullet Camera and
Security Speed Dome Camera are some of the variants of CCTV camera.

Chinese multinational company engaged in the production of video

Dahua Technology surveillance products. Incorporated in the year 2001, Dahua leads the
Co. Limited international front in surveillance products and also holds a significant market
share in India.
Samsung offers CCTV Cameras, which are packed with features like CMOS
image sensor, Auto Digital Noise Reduction, Auto Shutter Speed, Auto Gain
Samsung
Control, etc. Fixed Dome, Vandal Resistant Dome, PTZ Camera and Bullet
Camera are some of the variants of CCTV camera made by Samsung.

Sony offer a complete video security solution through various products like
CCTV cameras, 4K security cameras, network recorders, analogue cameras,
SONY
etc. CCTV cameras made by Sony are designed to capture images of indoor
and outdoor areas even in poor lighting conditions.

CCTV Camera, IP Camera, AHD Camera, PTZ Camera and Pin Hole Camera
Vintron Informatics
are some of the products of Vintron Informatics Limited. The company also has
Limited
a strong presence in the country with over 400 channel partners.

Vantage Colour Dome Camera, Mini Pinhole Camera, High Resolution CS Mount
Integrated Camera and Colour Fixed Box Camera are some of the variants of CCTV
Security Solution Camera offered by the company.

CCTV cameras made by Bosch uses imaging technology and gives high
Bosch resolution pictures. PTZ Dome, Fixed Camera, Fixed Dome and PTZ camera
are some of the types of CCTV Camera made by the company.

The CCTV cameras made by the company use a high definition image sensor
and capture clear images even in low light. 620TVL HDIS, 920TVL HDIS,
HI Focus
700TVL and 1000TVL Sony Exmor are some of the types of CCTV camera
made by the company.

Page 15
Project Financials

Project cost
The total project cost of setting up a CCTV manufacturing facility at Gandhinagar, Gujarat, will be
INR63.0 Lakhs for a total capacity of 6,000 units per annum.

Project cost
Project components & specifications Cost (INR Crore)
Land (Area: 93 sq. m - 1000 sq. ft.) 0.42
Rate: (INR4,480 per sq. m.)
Buildings Built-up area: (Area: 93 sq. m - 1000 sq. ft.) 0.10
Rate: INR1,000 per sq. feet
Machinery and equipment 0.011
Office equipment, furniture & working tables etc. 0.011
Tools, Jigs, fixtures etc. 0.02
Electrification charges and pre-operatives expenses 0.01
Working capital (Personnel) 0.033
Working capital (Raw material requirements) 0.425
Utilities 0.02
Other contingent expenses 0.03
Total cost 0.63

EBITDA calculation
Project components & specifications Cost (INR Crore)
Total recurring expenditure 1.855
Depreciation on plant and machinery @ 10 % 0.01
Depreciation on office equipment, furniture etc. @ 20% 0.02
Depreciation on tools jigs, fixtures etc. @ 25% 0.01
Interest on capital investment @12% 0.73
Total cost of production 1.933
Turnover (units) 3600
Unit price (INR) 5,853
Total revenue (per annum) 2.107
EBITDA (per annum) 0.252
Note: 1) Land rate based on Gandhinagar IT SEZ (rate may vary depending on the location of the site in Gandhinagar).

Page 16
Project Financials

Payback period
Capacity (units) 6,000
Capacity utilization (%) 60%
Production (units) 3,600
Price per unit 5,853
Revenue (INR crore) 2.107
EBITDA 25.2
Forecasting revenues at expected industrial growth rate 27.16%
Time (years) 1 2 3
Revenue (INR crores) 2.107 2.792 3.699
EBITDA 0.252 0.333 0.442
Undiscounted cumulative cash
flows 0.252 0.585 1.026
Investment (INR crores) 0.611
Estimated payback period: 2 years 1 month
Minimum Viable Size
Depreciation (INR crore) 0.0039
Interest (@12% on INR 61.1 crores) 0.0734
Employee costs 0.033
Total fixed cost (FC) (INR crore) 0.110
Total costs (TC) 1.933
Variable cost (VC=TC-FC) 1.822
VC per unit (INR) (VC/3,600 units) 5,062
Minimum viable size (FC/(Price per unit-VC per unit)) 1,396
Estimated minimum viable size: 1,396 units

Notes to Project Financials

 Total land requirement is assumed to be 1000 sq. ft. acres for a small manufacturing unit in
Gandhinagar. Depending on the exact location of the project the land cost could be higher or
lower.
 The building area is assumed to be 1000 sq. ft.
 The cost of construction of building would depend on the structure and the materials to be used.
It has been assumed that the average cost of construction would be INR1000 per sq. ft.
 All project costs except Land and Buildings, have been inflation adjusted.
 Working capital, utilities and other contingent expenses have been calculated for a 3 months
period.
 Total investment i.e. INR0.611 crores is assumed to be raised through debt.
 Price per unit is inflation adjusted.
 CCTV market is expected to grow at 27.16% CAGR

Page 17
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 Gujrat (2016-2021) in order
to establish Gujarat as a globally-recognized hub for the ESDM industry with a turnover of
US$16 billion by 2021 and an investment of US$6 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 18
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 19
Approvals & Incentives

Gujarat Industrial Policy 2015

Government of Gujarat has announced an ambitious Industrial Policy, in January 2015, with the
objective of creating a healthy and conducive climate for conducting business and augmenting the
industrial development of the state.
Approvals
Registration of the industrial undertaking
Industrial Entrepreneur Memorandum or Udyog Aadhar
Non-agriculture land permission and purchase deed registration
Consent to Establish from Gujarat Pollution Control Board
Quantum of incentives
% of eligible fixed
Category of % of Net VAT % of Net VAT to be
capital investment Incentive period
Project Location reimbursement to paid to
entitled for (no. of years)
(Taluka) the unit Government
Incentive
1 100 90 10 10
2 80 80 20 10
3 70 70 30 10
Net VAT incentives
Net VAT incentive will be reimbursed to the industrial undertaking in one financial year will not
exceed one-tenth of the total amount of eligible incentive.
Classification of the Project Amount (in INR crore)
Ultra Mega Industrial Unit 500
Mega lndustrial Unit 400
Large Industrial Unit 150
Micro, Small or Medium Industrial Unit 50

Electronics & IT/ITeS Start-up Policy 2016-21, GoG: Incentives

Particulars Details
Stamp Duty & Registration Fee
100%
Reimbursement
Lease Rental Subsidy 50 sqft per employee at the rate of INR15 per sqft per month
Interest Subsidy 9% per annum (ceiling of INR 2 lakhs per year)
75% of cost of obtaining patent (ceiling of INR 2 lakhs
Patent Assistance
Domestic Patent and INR 5 lakhs international patent)
Bandwidth Subsidy 70% of annual charges (ceiling of INR 20000 for 2 years)
INR5000 per skill certification per person (INR 1 lakhper
Skill Certification Grant
annum)
Marketing & Product
Onetime assistance of INR 1 lakh and INR 1 lakh for marketing
Development Assistance
25% of raised equity capital from Gujarat Venture Finance
Matching Equity Support
Limited (GVFL) (ceiling of INR 5 crores)
Page 20
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.

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.

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 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