Thursday, February 13, 2014: In a big boost to the ESDM sector that will eventually see India take a step forward in taking full control over its electronics destiny, the Cabinet has cleared the setting up of two semiconductor units entailing investments of Rs 515,500 million. Consortiums led by Jaiprakash Associates and Hindustan Semiconductor have proposed to set up the units.
The Department of Electronics and IT had earlier invited bids for the plants detailing the benefits that the companies would get following an in-principle approval by the Cabinet in September, 2013. The consortium led by JP Associates has outlay of about Rs 263,000 million, whereas the one led by Hindustan Semiconductor Manufacturing Corporation (HSMC) has outlay of Rs 252,500 million.
All the benefits under the National Policy on Electronics will be provided to the companies. Under the same, they will receive a Modified Special Incentive Package which allows up to Rs 100000 million in benefits under the 12th Five Year Plan ending 2017. Meanwhile, under section 35 AD of I-T Act their capital investment amount will be set off against profit. The projects will also be liable for interest free loan of about Rs 51,240 million for a period of 10 years.
