Chinese smartphone maker Oppo will start manufacturing phones in the Greater Noida area by the end of this year, reports the Economic Times. The company has invested Rs 145 crore in setting up the plant on a 110 acre area, and has completed the registry process with the government.

The report mentions that, in order to promote industries in the city, the state government has conditionally waived off stamp duty charges of Rs 9.7 crore. The condition of the waiver being that Oppo will begin manufacturing by December 2017, else the company will forfeit the Rs 9.7 crore held in a bank account as guarantee. The company mentions that the unit will be fully operational in 3 years, by March 2020.

Note that Oppo had said it would setup a plant in Noida in April last year, with a capacity to manufacture over 10 million handsets, by August the same year. The company had also said in May 2015, that it would set up a handset manufacturing unit in India by August the same year to primarily tend to the domestic market. However, the company decided against hurrying into setting up a plant in the country, and subsequently choose Foxconn as a partner to manufacture the phones instead.

Manufacturing in India: Having approved the National Policy on electronics with a target of achieving a turnover of about $400 billion by 2020, the Indian government has been encouraging domestic companies to start manufacturing in India. Just last month, Apple said it would start assembling iPhones in Bangalore by the end of April this year. Other players like Intex, Gionee, Micromax, Huawei, etc., have also setup manufacturing plants, or plan to setup plants, in the country.

It’s also worth noting that in the budget earlier this year, the finance minister announced a Rs 745 crore incentive for electronic manufacturing in the country through Modified Special Incentive Package Scheme (M-SIPS) and Electronic Development Fund (EDF). We had said then that such incentives or electronics manufacturing will provide an additional stimulant to smartphone manufacturers, especially foreign makers like Apple and Xiaomi who are subject to mandatory local production.