Electronic Hardware Technology Park Scheme
The Ministry of Electronics and Information Technology, Government of India, has launched the Electronic Hardware Technology Park Scheme to encourage the entrepreneurs in establishing manufacturing units of the electronic hardware equipment. The scheme focuses on promoting entrepreneurs in setting up Hardware Technology Parks anywhere in India to export their produced electronics goods. Several benefits and assistances are provided under the export-oriented scheme to enhance the production and export of electronics goods and services.
The Electronic Hardware Technology Park Scheme is implemented with the following features:
The Central Government, State Government, Public or Private sector undertakings or an individual can establish the technology park in any part of India.
The scheme encourages foreign investment and provides provision for 100% Foreign Equity investment through automatic route
Capital goods, raw materials, components and other such goods can be procured and imported with Duty-free services under the scheme
As per the provisions Under Section 10A/10B of Income Tax Act, the eligible entrepreneurs can obtain the Income Tax exemption from the export profits.
The EHTP units are discharged from the payment of corporate income tax for five years in the first eight years of its commercialisation.
The Net Foreign Exchange (NFE) obtained by the unit can be merged with the NFE of its head or associate company in the Domestic Traffic Area (DTA). It would benefit the parent or associate company in obtaining the Export House/Trading House/Star Trading House status.
EHTP units can get 100% Foreign Equity benefits under the scheme.
The units can import all the goods required for the manufacturing from bonded warehouses in the Domestic Tariff Area (DTA) for Duty-free under the Export-Import (EXIM) Policy.
Entrepreneurs can claim Refundable Central Sales Tax for their units.
DTA Sales, DTA sales permissible up to 50% of FOB value of exports, subject to fulfilment of positive NFE, on payment of concessional duties (50% of basic customs duty and full excise duty). DTA sales beyond this entitlement are permissible against payment of full duties provided the unit has achieved positive NFE.
Approvals are provided under the single window clearance system
The project cost with the minimum value of100 million is approved speedily by the authorities.
Outsourcing between EOU/STP/EHTP/EPZ is approved under the scheme.
CST charges paid by the entrepreneurs can be reimbursed under the scheme.