Gujarat Semiconductor Policy 2022-27 | What is the nodal administrative agency implementing the Policy?

Gujarat Semiconductor Policy 2022-27 | What is the nodal administrative agency implementing the Policy?

Gujarat Government recently unveiled a dedicated ‘Gujarat Semiconductor Policy 2022-27’. The policy aims created at least 2,00,000 new employment opportunities over the five years. Gujarat is the first state in India to release a dedicated semiconductor policy. Government has also proposed to develop a special ‘Semicon City’ as a part of Dholera Special Investment region.

Important facts and features of the policy include;

• Under the Gujarat Semiconductor Policy 2022-27, Gujarat Government will provide heavy subsidies on power, water and land tariffs for entrepreneurs who are interested in investing in semiconductors or display fabrication manufacturing in Gujarat.
• The policy is aimed at making the state first in developing Electronics System Design & Manufacturing (ESDM) ecosystem.
• It will provide for effective and timely execution of eligible projects, in a bid to set up a robust semiconductor and display fabrication ecosystem.
• It focuses on providing guidance to a significant portion of investments under the India Semiconductor Mission policies towards Gujarat.
• It also aims to develop a ‘Semicon City’.
• Under it, an additional capital assistance will be provided at 40% of the capex assistance provided by the central government, for projects approved under the India Semiconductor Mission.

Projects approved under Design-linked Incentive scheme of the Union government will not be eligible to avail benefits under new policy. Eligible projects will be given 75% subsidy to procure first 200 acres of land in  Special Investment region. On the other hand, additional land for upstream or downstream projects will be given 50% subsidy on land cost.

India Semiconductor Mission

Ministry of Electronics and IT (MeitY) launched ‘India Semiconductor Mission’ in 2021, with total financial outlay of Rs 76,000 crore. The mission is aimed at providing financial support to companies that invest in semiconductors, design ecosystem and display manufacturing.

What is the nodal administrative agency implementing the Policy?

The Gujarat government shall constitute a High-Powered Committee (HPC) for approving assistance to display FAB projects, semiconductor FAB projects, and projects with a proposed investment of INR 10 billion or more.

A State-Level Empowered Committee (SLEC) shall be constituted for approving assistance for projects with a proposed investment of less than INR 10 billion.

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