Jharkhand ESDM Policy, 2016 – Acceleration of IT & ESDM Sector
India’s rapid shift toward digitalization and electronics-based infrastructure has led to increased focus on the Electronics System Design and Manufacturing (ESDM) sector. Recognizing the transformative power of this industry, the Government introduced the Jharkhand ESDM Policy 2016 positions the state as a hub for electronics manufacturing, IT services, and technological innovation.
With its focus on economic growth, employment generation, and digital empowerment, the policy serves as a catalyst to boost Jharkhand’s role in India’s digital future.
What is the Jharkhand ESDM Policy, 2016?
The Jharkhand Electronics System Design and Manufacturing (ESDM) Policy 2016 was introduced with the objective of making the state a preferred destination for electronics manufacturing, IT/ITeS industries, and digital innovation.
The policy offers a range of fiscal incentives, infrastructure support, and skilled manpower development to attract investors in the electronics hardware manufacturing and embedded systems design space.
Understanding ESDM and Its Importance
ESDM refers to the ecosystem involved in designing, manufacturing, assembling, and servicing electronic systems and components. In the age of smart technology, where electronics are embedded in every sector — from automotive to healthcare — nurturing an indigenous ESDM sector is vital for economic and strategic self-reliance.
Objectives of the Jharkhand ESDM Policy, 2016
The primary aim of the Jharkhand ESDM Policy is to accelerate the development of the IT and electronics manufacturing sector by offering a conducive environment for businesses and entrepreneurs.
Key objectives include:
- Attracting investments in IT hardware, consumer electronics, and telecom equipment.
- Promoting design-led manufacturing of electronic products.
- Generating skilled employment in rural and urban areas.
- Establishing Electronics Manufacturing Clusters (EMCs) across the state.
- Encouraging R&D and product innovation.
Strategic Advantages of Jharkhand
Jharkhand provides several competitive advantages that support the growth of ESDM and IT:
- Mineral and power-rich, vital for the manufacturing of electronics and hardware.
- Access to technical colleges and vocational training facilities for skilled labor.
- Proximity to eastern industrial corridors and major ports.
- Lower operational costs and supportive state-level governance.
These advantages make the state a fertile ground for electronic component manufacturing and IT infrastructure development.
Key Features of the Jharkhand ESDM Policy, 2016
The policy offers both fiscal and non-fiscal incentives, aiming to lower entry barriers for investors and startups. Some notable features include:
1. Capital Subsidy
Entrepreneurs setting up manufacturing or design units are eligible for capital investment subsidies of up to 25% on plant and machinery.
2. Interest Subsidy
An interest subsidy of 5% per annum on loans taken from recognized financial institutions for fixed capital investments.
3. Land and Infrastructure Support
Allotment of land in IT Parks, EMCs, and SEZs at subsidized rates with plug-and-play infrastructure.
4. Stamp Duty and Registration Fee Exemption
When purchasing land or buildings for ESDM projects, there is a 100% exemption from stamp duty and registration fees.
5. Electricity Duty Exemption
10 years after the start of commercial production, there is no power duty.
6. Skill Development Support
Government-supported training programs through Industrial Training Institutes (ITIs), Polytechnics, and Engineering Colleges.
Focus Areas Under the Policy
The Jharkhand ESDM Policy focuses on promoting investment in:
- Mobile phone assembly units
- LED manufacturing
- Consumer appliances
- IT hardware manufacturing (laptops, routers, servers)
- Medical electronics and wearable tech
- Telecom products and network infrastructure
- PCB and semiconductor assembly
In parallel, the policy supports software services, IT-enabled services (ITeS), and embedded software development, creating a holistic IT-ESDM ecosystem.
Infrastructure Development and EMCs
To ensure physical infrastructure matches industry needs, the government has planned the development of:
- Electronics Manufacturing Clusters (EMCs) with shared utilities
- Cities like Ranchi, Jamshedpur, and Dhanbad have IT/ESDM parks.
- Common Facility Centers (CFCs) for testing and prototyping
- Incubation centers for electronics startups and tech entrepreneurs
These facilities will offer modern labs, design studios, and co-working spaces to support design-to-manufacturing journeys.
Boosting Startup Ecosystem and Innovation
The foundation of any industry driven by innovation is made up of startups and MSMEs. The ESDM policy offers:
- Seed funding support for early-stage electronics ventures
- Access to venture capital and angel networks via government facilitation
- Incentives for patent registration
- Collaboration with academic institutions for research, internships, and product co-creation
This makes Jharkhand not just a manufacturing hub, but also a knowledge and innovation center.
Skill Development and Employment
The policy emphasizes industry-ready skills and aims to train over 25,000 professionals in electronics design, assembly, and IT support. Through public-private partnerships, the state encourages:
- Customized skill development programs
- Finishing schools with industry-recognized certification
- Women-centric employment programs in electronics assembly
This approach ensures inclusive, employment-intensive growth in the tech and electronics sector.
Integration with National Missions
The Jharkhand ESDM Policy aligns with several national programs:
- Digital India: Boosting digital infrastructure and e-governance.
- Make in India: Promoting domestic manufacturing and exports.
- Startup India: Supporting new ventures with regulatory and financial help.
- Skill India: Enhancing employability through practical training.
Through this synergy, the state policy contributes meaningfully to India’s vision of becoming a global electronics powerhouse.
The Final Thought
The Jharkhand ESDM Policy 2016 is a visionary step toward building a resilient, inclusive, and competitive IT and electronics manufacturing ecosystem in eastern India. By combining investor-friendly incentives, skilled human capital, and cutting-edge infrastructure, the state is on its path to becoming a key pillar of India’s digital economy.
We at Cretum Advisory help manufacturers, investors, and entrepreneurs take advantage of this legislation.. Our services include regulatory consulting, scheme documentation, incentive application support, entity structuring, and financial advisory services to ensure a smooth business setup and policy compliance.
📩 For customized guidance and support, reach us at info@cretumadvisory.com
Frequently Asked Questions (FAQs)
1. What is the Jharkhand ESDM Policy 2016?
The Jharkhand ESDM Policy, 2016 is a state initiative to promote electronics system design and manufacturing (ESDM) and IT sector growth through incentives, infrastructure, and support for startups and manufacturers.
2. What incentives are offered under the policy?
The policy provides capital and interest subsidies, land and electricity duty exemptions, and support for skill development, R&D, and patent registration.
3. Which sectors are covered under the policy?
It covers electronics manufacturing (like mobiles, PCBs, LEDs), IT hardware, telecom products, embedded software, and support services for ESDM.
4. Is there support for startups?
Yes, the policy offers seed funding, incubation centers, and patent support to startups working in electronics and IT innovation.
5. How does it help in job creation?
Through skill development partnerships, training programs, and employment incentives—especially targeting youth and women—the policy aims to create over 25,000 jobs.
6. Where can companies set up operations under this policy?
Electronics and IT units can be established in planned EMCs and IT parks in cities like Ranchi, Jamshedpur, Dhanbad, and other identified clusters.
7. How is Cretum Advisory gonna help you in this domain?
To enable businesses to fully benefit from the Jharkhand ESDM Policy, Cretum Advisory offers consultation, scheme paperwork, business structuring, and regulatory compliance services.