The Gujarat government announced a dedicated policy to attract new investment in the semiconductor sector by offering incentives and subsidies to companies that set up shop in the state.
Chief Minister Bhupendra Patel unveiled the ‘Gujarat Semiconductor Policy,’ which will be in effect until 2027, according to state Science and Technology Minister Jitu Vaghani.
According to the policy, the state government will establish ‘Dholera Semicon City’ near Ahmedabad, where eligible projects will be given subsidies to set up manufacturing units.
First to have dedicated policy for the semiconductor
sectorGujarat has now become the first state in the country to have a dedicated policy for the semiconductor and display production sector, the minister claimed. “The policy has been designed in line with the Centre’s India Semiconductor Mission. We expect that our policy would generate two lakh new jobs in the semiconductor sector during the next five years in the state,” Vaghani said.
The state government will establish ‘Dholera Semicon City’ in the Dholera Special Investment Region near Ahmedabad under the policy. At the facility, eligible projects will receive a 75% subsidy on the first 200 acres of land purchased for the establishment of manufacturing units.
It also stated that eligible manufacturing units would receive a power tariff subsidy of Rs 2 per unit for the first ten years of operation, and that such projects would be exempt from paying any electricity duty.
To encourage investors under the policy, the state government has also announced that it will reimburse 100% of the stamp duty that investors will pay for the first time when leasing or transferring land.
The state government will establish a single window mechanism to provide all necessary approvals from one place to remove bottlenecks and provide quick clearances to investors.
