Gujarat govt. releases semiconductor policy; provides incentives for sector investment

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On July 27, the Gujarat government unveiled a plan to encourage fresh investment in the semiconductor industry by providing incentives and subsidies to establish businesses there. The “Gujarat Semiconductor Policy,” announced by Chief Minister Bhupendra Patel, would be in effect until 2027, according to a statement from the state’s Minister of Science and Technology.

According to the plan, the state government would establish “Dholera Semicon City” close to Ahmedabad, where qualified projects will receive subsidies for establishing manufacturing facilities.

First state in India to have dedicated policy for semiconductor

Gujarat 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.

Dholera Semicon City

According to the plan, a “Dholera Semicon City” will be built by the state government at the Dholera Special Investment Region close to Ahmedabad. On the first 200 acres of land purchased at the facility for the construction of manufacturing units, qualified projects will receive a 75 percent subsidy.

According to the press release, good quality water would be delivered to the approved projects for the first five years at a cost of Rs. 12 per cubic metre.

For the first 10 years of production, the eligible manufacturing units will also receive a power tariff subsidy of Rs. 2 per unit, it was stated, adding that such enterprises will be exempt from paying any electricity duty.

As part of the proposal, the state government has also stated that it will fully compensate investors for any stamp duty they first pay when leasing or purchasing land.

To remove bottlenecks and provide quick clearances to investors, the state government will establish a single window mechanism to provide all the necessary approvals from one place, the release said.

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