Andhra Pradesh Electronics Components Manufacturing Policy 2025-30

Mechanism

The Andhra Pradesh Electronics Components Manufacturing Policy 2025-30 (G.O.Ms.No.30, ITE&C Promotion Wing, 1 August 2025) is a state-level industrial subsidy framework that operates as a direct fiscal amplifier of the central MeitY ECMS (notified April 2025). The AP state cabinet approved the policy on 24 July 2025; the formal Government Order was issued a week later by the ITE&C (Promotion Wing) Department under the constitutional authority of the State Government.

Three-tier incentive architecture:

1. 100% matching state subsidy — the state will release a full match of whatever central ECMS disbursement is approved and released for a project in AP, within 6 months of central release. This is the most aggressive state-level top-up deployed under ECMS to date: Tamil Nadu's TN-ECMS uses a graded top-up and Gujarat's GECMP-2025 uses a 50% top-up structure. The 100% match effectively doubles the central-government subsidy for AP-based projects.

2. Early-bird capital-subsidy incentive — the first 10 projects with a minimum committed investment of ≥INR 250 crore over five years qualify for a direct capital subsidy of up to 50% of investment, paid in two equal annual instalments. This front-loads cash-flow support for anchor entrants in the critical 2025-27 window when ECMS application windows are most competitive.

3. 75% discounted land allocation — early-bird anchor projects receive land at a 75% discount to prevailing APIIC (Andhra Pradesh Industrial Infrastructure Corporation) rates, focused on four electronics manufacturing zones: Sri City (Tirupati district), Hindupur (Sri Sathya Sai district), Orvakal (Kurnool district), and Kopparthy (YSR Kadapa district).

Governance: project approvals route through the State Investment Promotion Board (SIPB) for large tickets, the State Investment Promotion Committee (SIPC) for mid-size, and the Consultative Committee for IT & Electronics Investments (CCITEI) for sector-specific review.

Priority component categories (11): display modules, camera modules, multilayer PCBs (MLCBs), magnetics (inductors/transformers), lithium-ion battery cells, capacitors, resistors, electromechanical sub-assemblies, bare-component sub-assemblies, capital equipment for semiconductor/electronics manufacturing, and connector/cable assemblies.

Downstream implications

• The 100% matching structure intensifies inter-state competition for ECMS

applicants: Karnataka (IP 2025-30), Tamil Nadu (TN-ECMS), and Gujarat (GECMP-2025) now face an AP top-up that materially improves per-project economics in AP versus graded or partial state matches elsewhere.

• Sri City (Tirupati) is the primary likely beneficiary zone given its

existing tenant base (Samsung, PepsiCo, MAS Holdings) and proximity to the Chennai port logistics corridor — camera modules and multilayer PCB players are the most plausible early applications.

• The 5 lakh job creation target is the largest announced by any single state

under ECMS; headline risk is contingent on central ECMS pipeline fill rate, which as of Q1 2026 had approved 22 proposals under the 3rd tranche.

• Lithium-ion cell manufacturing incentives overlap with the PM E-Drive Scheme

(IN action 2024-09-29) battery-cell localization push — combined state + central subsidies could cross the threshold needed to justify greenfield cell plants.

Open questions

• Whether central ECMS tranche size is sufficient to trigger AP's matching

disbursements at scale (ECMS has been sequentially expanded from INR 22,919 crore to INR 40,000 crore but project pipeline absorption rate is unclear).

• APIIC land-bank availability at the four priority zones — historical

bottlenecks at Hindupur and Orvakal on power and water connectivity.

• Whether Tamil Nadu and Gujarat respond with enhanced top-up structures to

defend their existing ECMS pipeline positions.