It also provides for reimbursement of excise for capital equipment for the non-SEZ units. For high-technology and high-capital investment units like fabs (semiconductor), reimbursement of central taxes and duties is also provided.
"The policy is expected to create an indigenous manufacturing eco-system for electronics in the country. It will foster the manufacturing of indigenously designed and manufactured chips, creating a more cyber secure ecosystem in the country," the Communications and IT Ministry said in a statement.
The incentives are available for investments made in a project within a period of 10 years from the date of approval.
They are available for 29 category of ESDM products - including telecom, IT hardware, consumer electronics, medical electronics, automotive electronics, solar photovoltaic, LEDs, LCDs, strategic electronics, avionics and industrial electronics.