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Sri City Electronics Manufacturing Cluster

The Electronics Manufacturing Cluster (EMC) at Sri City is an exclusive zone for companies involved in R&D, manufacture and assembly of electronics hardware. In its first phase, 100 acres are being developed for the EMC, which will house a training center, testing lab, and R&D centers for the units. Sri City's customers in the electronics industry will reap major benefits from this cluster model that enables them to tap into common resources for quick start-up and efficient and cost-effective operations. It also provides them with access to suppliers and customers who are within arm's reach, thus enabling cumulative benefits and unparalleled growth for the entire cluster.

Electronic Manufacturing Cluster - Advantages
Clusters Advantages:
  • Increased productivity of the companies in the cluster
  • Driving innovation in the industry segment
  • Cutting down the unproductive costs and reduction of overall costs through shared resources
  • Offers critical mass for customization of interventions
  • Provide economies of scale in operation
  • Better access to customers, technology, information
  • Cheaper access to inputs, raw materials
  • Ensures that environmental safety standards are maintained

Central Government Incentives
Modified Special Incentive Package Scheme (M-SIPS)
  • Offers capital subsidy (excluding land) up to 20% for SEZ and 25% for DTA units on capital costs
  • Applicable for new as well as for expansion projects
  • Reimbursement of CVD / Excise duty on capital equipment for non-SEZ units
  • Reimbursement of Custom and Excise duties for high investment capital projects
  • For more information on M-SIPS visit

State Government Incentives
  • MSIPS - grant from Central Govt of 25% of cost of Building and Machinery only
  • AP Govt also gives 30% of capital cost (building and machinery) subject to maximum of Rs. 2500 million (38 Million USD). This is 25% for non-mega projects.
  • Power subsidy - 25% of actual power bills reimbursed for 5 years
  • Stamp duty reimbursement - Refund of land registration fee by AP Govt
  • VAT - no VAT for 10 years ( reimbursement basis)
  • Training grant - Rs 10,000 per worker from AP (subject to MOU with AP Govt)
  • Partial assistance for ISO 9000 or similar certification
  • Under section 32AD of the Income Tax act, units in Sri City will be eligible for 15% of higher additional depreciation and 15% investment allowance on the cost of plant and machinery.
  • Exempted from inspections from Statutes like Factories Act, Minimum Wages Act, Labour Act etc.. and is declared as Essential Service in AP.
  • For more information on Andhra Pradesh electronic policy visit -
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