Manufacturing/ Assembly of

LED Lights

Electronics & Hardware

Government of Gujarat

Contents
Project Concept

Market Potential

Growth Drivers

Gujarat Competitive Advantage

Project Information

10

- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower

- Key and Emerging Players

- Key Considerations

Project Financials

16

Approvals & Incentives

18

Key Department Contacts

19

Page 2

Project Concept
LED Lights Overview


LED lamp is a light-emitting diode (LED) product which is assembled into a lamp (or light bulb)
for use in lighting fixtures.

LED lights pass an electrical current through a semiconducting material to illuminate the lightemitting diodes that give the bulb its name.

The lights have been proven to be more energy efficient, economically viable and long-lasting
than their conventional counterparts.

While an LED bulb last for 50,000 hrs, it consumes 10W electricity and emits 80-100
lumens/watt, an incandescent bulb last for just 1,500 hrs, consume 60W and emits only 13
lumens/watt.

LED lamps are best suited for signs and indicators, night lights, flashlights, undercabinet
fixtures, and some recessed light/downlight applications.

For residential purpose, LED bulbs usually comes in the energy efficient range of 4W, 6W, 10W,
13W, 18W , 25W and 30W. (W = watts)

LED Value Chain

Component and subsystem suppliers
Heat sink

~70% of
total LED
production
cost

Thermal
interference
Driver

PCB
~30% of
total LED
production
cost

Page 3

Residential

LED housing

LED lighting
system - EMS

LED light assembling

Testing
Certification
licensors

Optics

Lens
Diffuser

Downstream

In India, LED assembling

companies have a limited presence
and cater to 40% of domestic
demand

LED lighting
system - OEM

LED chip

Assemblers

Together - housing, lighting system

and optics - form an LED lamp

Government

Commercial and
Industrial (C&I)

C&I is expected to have

much higher penetration of
LED than residential by 2020

Project Concept
LED Lights Classification


LED products can be classified into different types:

1. Light emitting colors LEDs are available in red, orange, green (subdivide into yellowgreen, standard green and pure green) and blue and so on.
2. Outer surface trait and structure of the diodes LED can be classified into round LED,
square LED, rectangular LED, surface LED, side LED, surface mount sub miniature LED.
3. According to the structure LED based on structure can be classified into full epoxy resin
packaging, metal base, ceramic base epoxy resin packaging and glass packaging.
4. Luminous intensity According to luminous intensity, there are standard brightness LED
(luminous intensity <10mcd) high brightness LED (luminous intensity between 10mcd -100mcd)
and ultrahigh brightness LED (luminous intensity >100mcd).

Why to use LED lights - benefits over other lighting sources

Cost
comparison
Parameter

LED

CFL

Incandescent
bulb

Life span (hrs)

50,000

10,000

1,500

Wattage to match desired lumens (W)*

14

60

Power consumed per hour (kWh)

0.006

0.014

0.06

Cost of usage for one hour @INR6/kWh - INR

0.036

0.084

0.36

Cost of usage for 50,000 hours (A) - INR

1,800

4,200

18,000

Bulbs needed for 50,000 hours of running

33

Bulb Cost (INR)

400

120

10

Cost of replacement (B) - INR

400

600

330

Total 50,000hrs lighting cost (A+B) - INR

2,200

4,800

18,330

Lowest cost

Source: PhillipCapital Research

LEDs are clearly more energy efficient, long lasting

and economically viable than their conventional
counterparts
*Note: A 6W LED, 14W CFL and 60 W ICL will all emit 800 lumens respectively

Page 4

CFL is ~2.2x
ICL is ~8.3x
more expensive more expensive
than a LED bulb than a LED bulb
If calculated over the life cycle of the LED bulb

Project Concept
Key components of LED Lamp
An LED lamp comprises following
major sub units/parts:


Secondary Optics: Secondary

optics are used to create the
desired appearance and beam
pattern of the LED signal lamp.
It is known as the diffuser
component.

Optics or remote phosphor

effectively separates the
emitting photons, allowing
different phosphors to be
interchanged in a light housing.
This allows color temperature
to be changed simply by
slotting in a different phosphor.

LED chip encapsulants: The

chip encapsulants provides
moisture resistance and absorb
thermal cycling stress,
protecting the sensitive
components. Their high
transmittance and thermal
stability help to design maintain
light quality over a longer time,
while their unique chemistry
offers minimal yellowing and
degradation.

Reflector: Reflectors provide

ultra-high reflectivity for
spreading the light extensively.

Conformal coating/white
reflection: The conformal
coating helps in moisture
control and solvent protection.

Thermal interface/ Pottants : It helps in controlling the high temperature of the LED by
providing proper insulation.

Adhesives for environment seals: Adhesives and sealants play a crucial role in the
structural integrity of LED lamps and luminaires, shielding electronics from environmental
stress and moisture. These products ensure components, such as module lids and base
plates, provide a secure structure base for subcomponents and larger assemblies.

Page 5

Market Potential
LED Lighting Industry Global Scenario


The global LED lighting market is

forecasted to reach USD42.7 billion by 2020
at a CAGR of 13.5% from 2014-2020.

The fastest growing region is North America

growing at a CAGR of 15.3% from 2014
2020 closely followed by Latin American
countries, Asia Pacific and Europe.

LED lamps are expected to command ~20%

share of the global lighting market by 2020.

Among the LED types high brightness LED

segment is expected to grow swiftly and
continue to account for the highest market
share, contributing over 60% of the total
market revenue.

Global LED lighting industry

(US$ billion, 20142020F)

CAGR:
13.5%

42.7

19.9

2014

2020F

Source: Make in India Report 2015 (LED industry)

LED Market Indian Scenario

Indian LED industry by revenue
(INR billion, 2015E20F)

186.7

192.8

23.4% CAGR over 2015-20F.

LEDs will account for 61.7%

(up from 21% in 2014) of the
overall lighting market in
2020.

Primarily driven by
government's decision to
switch to LED for all street
lamps and public space
lighting.

216.3

152.8
104.6
75.6

2015E

2016F

2017F

2018F

2019F

2020F

Source: ELCOMA*

*Note:*ELCOMA is the apex body of lighting manufacturers in India which liaisons with govt agencies & supports lighting industry in
India.


As per the official estimates, Use of LEDs in households and public lighting could reduce energy
consumption by 50% to 90%.

It is expected that if 770 million incandescent bulbs sold in Indian households were switched to
LEDs, the country could save 25 billion KWh (units) of energy per year.

Prime Minister Narendra Modi launched LED household and street lighting program, Prakash
Path (way to light) on Jan. 5, 2015 which has led to adoption of LED efficient lighting systems.

Page 6

Growth Drivers
Demand-side drivers
Energy efficient

Smart Cities Project

LEDs unique design makes them 90% more

efficient than incandescent sources. At that
rate, LEDs can significantly reduce annual
home lighting energy bills to a very large
extend as compare to other lighting.

The GoI has envisioned a goal to build 100

smart cities (renamed Smart Cities Mission)
and rejuvenate another 500 cities in India.
The government is looking towards more
energy efficient solutions to light up cities.

Make in India initiative

Make in India campaign was launched in 2014 to attract investments in manufacturing in India.
The campaign aims to develop India as a manufacturing hub, by eliminating redundant regulations
and shortening bureaucratic processes. The initiative is expected to benefit the electronics industry
as significant investments are expected in the next two to three years.
Extended Life
LEDs has extra-long lifespan, shining on for
years and even decades beyond traditional
light sources. LEDs can survive up to three
times longer than compact fluorescent, eight
times longer than halogen, and a whopping
25 times longer than incandescent bulbs.

Government Schemes
Government schemes like Ujala scheme,
Domestic Efficient Lighting Programme
(DELP) and Street Light National
Programme (SLNP) are strongly supporting
the cause by distributing subsidized LEDs.
The cost has been reduced to INR250-300.

Supply-side drivers
Preferential Market Access The GoI launched PMA policy in 2013 to focus on giving preference to
(PMA)
locally manufactured electronic products in Government procurement.
Electronic Development
Fund (EDF)

In December 2015, the GoI announced a special EDF worth INR100

billion to help develop an R&D ecosystem in electronics in India.

It provides capital subsidy of 20% in SEZ (25% in non-SEZ) for units

engaged in electronics manufacturing.
Modified Special Incentive In July 2015, the scheme was extended till 2020 and production
Package Scheme (MSIPS) subsidy at the rate of 10% of the production turnover (ex-factory) has
been introduced for power semiconductors, OLEDs, LCD, LEDs,
manufacturing of PCBs, fabrication of chip components.
Electronic Manufacturing
Clusters (EMCs)

Page 7

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.

Growth Drivers
Other Government initiatives
Subsidy halt on CFL to
encourage LED-based solar
lights
In Dec 2015, Ministry of
New and Renewable
Energy stopped providing
central financial assistance
to CFL-based solar lighting
system

The same will be available

to LED-based solar lighting
system, further increasing
their affordability and
adoption

Phasing out of incandescent

bulbs by 2020

STAR rating* plans for

LED lighting

The Indian Government

banned manufacturing of
100W ICL in 2015, in a
major departure from usage
of conventional light
sources

The Bureau of Energy

Efficiency (BEE) is in
the process of
launching a STAR
rating system indicating
safety of the LED lights

It has also decided to phase

out 60W ICL in 2016,
followed by 40W in 2017

The increased
compliance norms will
arrest the dumping of
Chinese sub-standard
LEDs and will promote
uptake of locally
manufactured products

*Note: The STAR rating system would be mandatory from 1 Jan 2017 and needs to be adhered before 31 Dec 2018

Page 8

Gujarat - Competitive
Advantage
Ease of doing
business/ Policy
support

Established
infrastructure

Gujarat is ranked first in

ease of doing business
as per DIPP report
2015.

Only state with 100%

compliance with
environmental
procedures.

Gujarat ranked No.1 in

e-transactions for
government services

Gujarat was ranked No.

1 in terms of setting up
a business, allotment of
land and obtaining a
construction permit.
Encouraging Start up
and Electronics policy
of State.

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.

Flourishing
economy


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 Chief Minister Anandiben Patel launched the Central governments Ujala Scheme
according to which domestic consumers will be provided LED bulbs at a subsidised rate
of INR80-85 per piece. Till now 1.07 Cr bulbs has been sold at the subsidize rate in Gujarat.

High availability of skilled manpower (engineers)

Engineering seats in Gujarat by
specialisation (2016-17)
Others

2,718

Auto

2,202

Chem

2,220

IT
Electronics
Electrical
Computer
Civil

4,857
5,607
9,611
10,224
12,114

Mech

Total seats: 67581

Source: Gujarat Technical University
Page 9

18,028

In 2016-17, Gujarat had ~134

engineering degree colleges with an
intake of ~68,000 students per year.
Leading engineering colleges in Gujarat:
 Indian Institute of Technology (IIT),
Gandhinagar
 Sardar Vallabhbhai National Institute of
Technology, Surat
 Gujarat Technological University,
Ahmedabad
 Nirma University - Institute of Technology,
Ahmedabad


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
Electronics SIR
IT/ITeS SEZ
Electronics and IT/ITeS SEZ

Tourist
flow*

Navlakhi
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 startups 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
Project location


Vatva industrial estate and adjoining areas in Ahmedabad district are appropriate location to
establish an LED manufacturing plant.
The site is owned and managed by Gujarat Industrial Development Corporation (GIDC) and falls
under Ahmedabad district.
DMIC**
Vatva industrial estate: Key highlights
Area
Land price

527 hectares
INR ~4,780/ square meter
(Apr16)


Focus
sectors




Engineering (including
electrical equipment and
products)
Foundries
Chemicals

Ahmedabad
Vatva GIDC

Reasons for suggesting location

Strong existing base for electric manufacturing


Vatva is a hub of small local LED manufacturers such as Geco Industries, Interio Lighting,
Farmson Enviro Care and Inovision Electronics.
Vatva along with several adjoining industrial estates in Odhav (11 kms*), Navrangpura (12 kms*),
Saraspura (11 kms) and Naroda (19 kms*) is base to several electric manufacturing facilities. This
indicate the presence of robust supply chain in the region.
*Distance from Vatva GIDC

Easy accessibility to raw materials



Compound semiconductor materials (Indium gallium nitride, Aluminium gallium indium phosphide
and Aluminium gallium arsenide), electrical chipsets (capacitor, diode, resistor and IC chip, etc.)
and optical glass are the key raw materials used in the production of LED bulbs/lights.
Industry
Electronic chipsets
Compound semiconductor
materials
Copper

Page 11

Location (Distance from Vatva)

Ahmedabad (10 Kms)

Vadodara (106 Kms)

Bhavnagar (180 Kms)

Vadodara (106 Kms)

Panchmahal (120 Kms)
Ahmedabad (10 Kms)

Surat (258 Kms)

Bhavnagar (180 Kms)
Valsad (331 Kms)

Dahej (230 Kms)

Jhagadia (200 Km)






Project Information
Infrastructure availability

Logistics & connectivity

Rail

Vatva has access to broad gauge

railway network from the following
railway stations:

Ahmedabad railway station: 10 Kms

Vadodara railway station: 106 kms

Road

Air

Ahmedabad international airport: 20

Kms.
Vadodara domestic airport: 100 Kms.

Vatva is located on Delhi Mumbai Industrial

Corridor (DMIC). DMIC is intended to be the
manufacturing hub serviced with world class
infrastructure.
It also has a very good connectivity with other
cities of the state such as Vadodara and
Surat.

Port


Vatva (Ahmedabad) is connected to the

following ports:

Dahej 230 Kms

Kandla 300 Km

Mumbai 520Kms

Utilities

Water

Gujarat Industrial Development

Corporation (GIDC) claims to provide 24
hour uninterrupted water supply.

Power

Electricity is supplied from an existing

132 KVA sub-station located in the
premises.

Gas


Page 12

Gujarat State Petroleum Corporation (GSPC) is the gas supplier to the site through a well
established pipeline.
The company needs to directly apply for gas to GSPC.

Project Information
LED Manufacturing List of raw materials
Material

Quantity

Units

Material

Quantity

Units

Acetone

0.472

l/wafer

AuSn solder

11.817

mm3/wafer

Developer

92

ml/wafer

Etchant Ag

24

ml/wafer

Etchant Metal

48

ml/wafer

GaN Etchant

0.154

l/wafer

H2 gas

1.296

m3/wafer

N2 gas

3.536

m3/wafer

NH3 gas

0.358

Kg/wafer

O2 gas

1.6

l/wafer

Photoresist

15.2

ml/wafer

Power

34.06

kWh/wafer

SF6

0.08

l/wafer

SiH4

0.194

g/wafer

Slurry

1.84

l/wafer

Target Ag

0.352

mm3/wafer

Target Al

1.016

mm3/wafer

Target Ni

0.334

mm3/wafer

Target Ti

0.374

mm3/wafer

Target W

2.471

mm3/wafer

TMAl

0.002

g/wafer

TMGa

1.176

g/wafer

TMIn

0.008

g/wafer

UPW

192

l/wafer

LEDs (blue light)

12

Packaged
LEDs

Aluminium heat
sink

0.03273

Kg

IC chip

0.003

Kg

Lamp Weight

0.143

Kg

Diode

Pieces

Resistor SMD

23

Pieces

Resistor

Pieces

Transistor

Pieces

Electrolytic Capacitor

Pieces

Total Lamp &

Pack Weight

0.18

Kg

Manufacturing

0.143

Kg

Energy in Use

240

kWh

Manpower requirement
Departments

Executives

Administration (3)

General Manager (1) , Secretary (2)

Human Resources (9)

HR Manager (1), IMPEX/Delivery and Shipping (2), Nurse

(2), Security Guard (2), Warehouse Keeper (2)

Financing (5)

Finance Manager (1), Accounting Clerk / bookkeeper (4)

Marketing (3)

Sales Manager (1), Planner/Buyer (2)

Production (50)

Production Supervisor (2), QA Inspector (2), Line/Facility

(8), Technician, Process Engineer/R&D (2), Non-Skilled
Worker (34), Material Control and Finish Goods Handler (2)

Total - 70
Page 13

Project Information
List of equipment and machinery
5 High Magnification Microscope

1 LED prober

1 Dicing Machine

1 Auto DA/WB

1 Mold Press Machine

1 Auto DTFS

1 Auto SD

1 Auto tester

3 Low Magnification Microscopes

1 Auto Stretch Wrapping Machine

1 Compressor

1 Oven

1 Freezer

2 Air Shower

1 Back-up Generator

PC, Office Supplies, Printers

Others (Shelves, Trollies, Trays, Tape and Reel Packages)

Miscellaneous equipment
1 Alarm System

12 Air conditioner

2 Bundy Clock

10 Chair

10 Desk

10 Computer with printer

1 Photocopying Machine

2 Telefax

12 Telephone

Office Supplies

20 Fire Extinguisher

10 Exhaust Fan and Smoke Detectors

15 Smoke Detector

Page 14

Project Information
Key players in Indian LED market
Company

Product offerings

Philips

Bulbs, Wall Lights, Ceiling Lights, Tube Lights, Spot Lights, Down lights,
Desk/Table Lights, Suspension Lights and Decor Lights

Osram

Lamps, Spot Lights, Tube Lights, Pendant Luminaries, Wall Luminaries,

Ceiling Luminaries, Batten Luminaries, Deco Lights, Under Cabinet Lights,
Recessed Luminaries, Floor Luminaries, Table Lights, Night Lights, String
Lights, Flood Lights & Spots, Camping Lights, and Street Lights

Havells

Lamps, Spot Lights, Down Lights, COB Fixtures, Decorative Wall/Ceiling

Lights, Tube Lights, Landscape Lights, commercial lights and street lights

Wipro

Bulbs, Down Lights, Recess/Surface Mounted Luminaires, Suspended

Luminaires, Linear Lamps, Desk Lights, Batten Lights, Flexible Strip Lights,
and Street Lights

Bajaj

Bulbs, Down Lights, Spot Lights, Tube Lights, Flexi Strips, Highbay
Luminaires, Street Lights, Landscape Lights, and Flood Lights

Eveready

Bulbs, Spot Lights, Down Lights and Deco Lights, Digi LED Torches, Ultra
LED Torches

SYSKA

Lamps, Tube Lights, Down Lights, Panel Lights, Strip Lights, Multibox Lights,
Track Lights, Moisture Proof Lights, Flood/Beam Lights, Hi-bay, Tunnel Lights,
Industrial Lights, Portable Lights, Corn Lights, Street Lights, Garden Lights
Black/White, Garden / Wall Lights, Parking Lights

Oreva

Lamps, Night Lamps, Down Lights, Panel Lights, Spot Lights, Tube Lights,
and Street Lights

Moser Baer

Bulbs, Panel Lights, High Bay Lights, Street Lights, Down Lights and Tube
Lights

Surya

Lamps, Spot Lights, Battens, Decorative luminaries, Down Lights, Strip Lights,
Street lights, Facade lights, High-bays luminaries and Linear Lamps

Other emerging LED lighting companies in India

GE Lighting

Charlston

NTL Lemnis

Reiz Electro controls Pvt Ltd

MIC Electronics Ltd

Sanarti Group

Page 15

Innovlite India Private Limited

Goldwyn Limited

Project Information
Key considerations
Non-standard ratings


Ratings of electrical equipment are not standardised and all utilities follow
their own standard ratings.

To meet their requirements, manufacturers have to constantly modify the

design and spend resources in redesigning, etc. moreover, testing of
such electrical equipment is also time consuming and costly.

Access to Technology


Technology expertise is one of the most critical challenge faced by the

Indian LED manufacturers.

Leading OEMs are unwilling to transfer cutting edge technologies with

limited management control in the Indian entity.

Even in case of Tier-3 suppliers the established companies are reluctant

to transfer the technology.

High contribution of aluminium semiconductor materials to cost



Aluminium derivatives is one of the major raw material used in

manufacturing of LED lamps contributing more than 50% to the recurring
cost.

Any abrupt increase in the aluminium price will adversely impact the
profitability of LED manufacturing companies.


Page 16

Although prices of aluminium have declined significantly over last

two years, any potential spike in aluminium prices going ahead
might negatively impact the profitability of industry participants.

Project Financials
Estimated project cost
The total project cost of setting up a LED manufacturing unit is INR500 Crore. The facility will
manufacture LED lighting solutions for indoor, outdoor and industrial segments.

Project specifications
Project specifications

Details

Land requirements for the facility*

50 acre

Number of LED units produced annually**

2.57 Cr

Direct employment generation

2,000

Approximate cost required for setting up a plant*

INR500 Cr

Average selling price of LED bulb

INR300

EBITDA margin (LED Industry)***

12.00%

*The land requirement and average cost of setting up of the plant (alongside the employment
generation) has been considered based on the recent proposal of Telangana LED plant.
**The total annual units production has been calculated by dividing the total annual revenue of
lighting segment by average cost of LED bulb.
***The EBITDA margin has been calculated by averaging the top LED manufacturers figures.

Pay back period

Time (years)

Revenue* (INR crore)

771

948.33

1166.44

1434.72

EBITDA/Cash Flow
(INR crore)

92.52

113.79

139.97

172.16

Undiscounted
Cumulative Cash flow
(INR crore)

92.52

206.31

346.29

518.46

Investment (INR Crore)

INR500 crore
Estimated Payback period: 3.9 years

*Revenue has been derived for the LED lighting segment.

The EBIT margin used for the calculation of payback period stands at 10.86%. (average of LED
industry in 2016)

Page 17

Project Financials
Minimum viable size
Revenue

771.8 Cr

EBIT (Average Industry @10.86%)

83.8 Cr

Total cost

688.0 Cr

Fixed cost (28% of revenue)

216.1 Cr

Variable cost

471.9 Cr

Total production unit

2.57 Cr

Variable cost per unit

INR183.6

Revenue per unit

INR300

Minimum viable size (FC/(Revenue per unit-VC per unit)

1.85 Cr

Page 18

Approvals & Incentives

Approvals
Industrial approval


Secretariat For Industrial Approval(SIA), New Delhi

Land for project



Allotment of plot/shed in Industrial Estate from GIDC

Environment clearance


No Objection Certificate from the Gujarat Pollution Control Board

Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF)

Incentives from Government of Gujarat

As per the Gujarat Industrial Policy-2015, following are the key incentives provided to the
manufacturing sector (including LED manufacturing):


Interest subsidy of 5% up to maximum amount of INR2.5 million (~US$ 37,5001) per annum for
five years on the term loan of machinery and equipment anywhere in the state.

Capital investment subsidy of 10% loan amount disbursed by Bank/Financial Institution up to

maximum amount of INR1.5 million in Municipal Corporations areas.

Assistance for technology acquisition from recognized institution for manufacturing products will
be provided by way of 50% of the cost payable subject to a maximum of INR5 million
(~US$75,0001), including royalty payment for first two year.

Assistance for venture capital to raise promoter contribution in the form of equity or loan through
Gujarat Venture Finance Limited (GVFL).

Incentives from Government of India (GoI)

Technology development


SMEs will be given access to the patent pool and/or part of reimbursement of technology
acquisition costs up to a maximum of INR 2 million (~US$ 30,0001) for the purpose of acquiring
appropriate technologies up to a maximum of 5 years.

Green technology & practices:



5% interest in reimbursement & 10% capital subsidy for the production of

equipment/machines/devices for controlling pollution, reducing energy consumption and water
conservation.

A grant of 25% to SMEs for expenditure incurred on audit subject to a maximum of

INR 1,00,000 (~US$ 1,5001).

A 10% one-time capital subsidy for units practising zero water discharge.

A rebate on water cess for setting up wastewater recycling facilities.

Incentives for renewable energy under the existing schemes.

Note: 1) All currency conversions at US$ 1 = INR 66.66 as on 9 June 2016.

Page 19

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