Madhya Pradesh gets a ‘fab’-ulous investment policy

- Advertisement -
- Advertisement -

By Shweta Sengar

April 7, 2015: The Analogue Semiconductor Fabrication (fab) Investment Policy 2015, launched by the government of Madhya Pradesh, is another stepping stone in the path of making India a manufacturing hub. The policy aims at developing analogue semiconductor fabrication and micro and nano manufacturing technology as a vibrant industry for inclusive growth, creating employment opportunities for people across the state. The policy will stay in force up to December 2016 or till the announcement of the next policy.

Objectives

- Advertisement -

The policy aims to increase the flow of investments into Madhya Pradesh to make India and the state self-sufficient in electronics manufacturing. Along with promoting the establishment of fab units in the state, this move will help maximise direct and indirect employment generation opportunities for the youth in the state.

The road map

As per the policy, the state government will provide land for establishing a fab unit. It will also provide state-of-art infrastructure that conforms to international standards. Along with these, the government will facilitate transportation of raw materials and finished goods efficiently by providing transport, warehousing and allied infrastructure. The state government will also look after the social welfare of the employees working at the fab units.

Special focus is being laid on the chip manufacturing sector for the development and promotion of electronics manufacturing. A wafer fab facility with a minimum investment of Rs 30 million will qualify as a fab unit for the purpose of availing incentives, concessions and subsidies under this policy.

Incentives offered under the policy

There are a lot of incentives outlined in the policy, which will benefit the fab installers. The state government will reimburse the cost of constructing the shell of the building that will house the fab unit, after deducting any other subsidy available to the facility from the Centre. The other incentives that the policy offers are:

  • Contiguous land measuring up to 303,514.2sqm, as per the actual requirement of the fab unit assessed by the authorised agency, will be provided free of cost on a 50-year renewable lease

  • Stamp duty payable by any unit located in the fab investment area on mortgage/hypothecation with banks/financial institutions will be exempted if such a unit is certified as a fab unit by the authorised agency

  • The state government will reimburse the cost, if any, paid by the unit for electricity charges, including duties, over and above US$ 7.5 per kWH up to a period of 10 years from the date production starts

  • The state government will provide uninterrupted, adequate water supply for the fab unit

  • The state government will provide quality roads between the fab unit and the nearest airport

  • A Free Trade Zone will be set up at the concerned airport in collaboration with the government of India, which will remain open 24×7

  • The unit will be covered under the Essential Services Act

  • Units necessary for fab operation will be provided all the benefits under this policy

  • The total value of incentives paid under this policy to any unit will be limited to 15 per cent of the total capital of the unit

  • The state government will aid the unit in obtaining various incentives/subsidies as provided under this policy

With all these initiatives and investments pouring in from the government, the semiconductor industry is expected to soon get going in India.

- Advertisement -

Related Artcles

Exclusive

Agriculture drone spraying water fertiliser on the sunflower field

Rising Drone Startups Giving Rise To Balanced Drone Ecosystem, India

0
Ban on drone imports, restrictions on foreign operators, alongside simplified permission processes and relaxed rules for domestic drones drive the Indian drone market.  The Indian...

ICE To EV Transition Likely Boosts Auto Sector Jobs

0
A report by the International Forum for Environment Sustainability and Technology predicts that India's total vehicle production will double by FY31 and triple by...

Element14 Offers Traco Power Product Line Featuring TMPW Series

0
Electronics and industrial design engineers can use these ultra-compact AC/DC power supplies, which come in PCB and chassis mount configurations, for their critical building...

Buzz

Delhi Solar Energy Policy Introduces Hybrid RESCO Model In India

0
The policy offers Generation Based Incentives (GBI) for five years to domestic, commercial, and industrial consumers.  The Delhi government has launched the Delhi Solar Energy...

Kerala’s ‘chargeMOD’ To Add 1,200 EV Chargers In India

0
'chargeMOD' is expanding its deployment of electric vehicle (EV) chargers in India, emphasizing quality and affordability. The introduction of Ultra Fast Chargers is part...
Union Minister Ashwini Vaishnaw Inaugurating the Chennai Design Centre with Qualcomm CEO, Cristiano Amon

Qualcomm To Plan India’s Electronics Growth, Inaugurates End-to-End Design Center in Chennai

0
The wireless tech design centre will employ 1600 skilled semiconductor designers. Qualcomm will set up 6G labs in the country. The company will...

Important Sectors

Delhi Solar Energy Policy Introduces Hybrid RESCO Model In India

0
The policy offers Generation Based Incentives (GBI) for five years to domestic, commercial, and industrial consumers.  The Delhi government has launched the Delhi Solar Energy...

Kerala’s ‘chargeMOD’ To Add 1,200 EV Chargers In India

0
'chargeMOD' is expanding its deployment of electric vehicle (EV) chargers in India, emphasizing quality and affordability. The introduction of Ultra Fast Chargers is part...

Okaya To Supply 600 EV Chargers To HPCL Pan India

0
This initiative aims to enhance EV accessibility and convenience nationwide, featuring advanced safety features and certifications.  In a move for India's sustainable transportation sector, Okaya...

India’s EV Policy: Leveling the Playing Field For Manufacturers

0
This policy benefits new entrants and supports existing players planning to invest in EVs, ensuring a level playing field for all. The Indian government has...

E2W Sales Projected To Surpass One Million Units In 2024-2025

0
ICRA forecasts that the market share of electric two-wheelers will reach 6-8% in the fiscal year 2025. Electric two-wheeler (e-2W) sales in India are approaching...

Manufacturing

Altmin India Partners With WMG To Advance Battery Tech

0
Altmin and WMG will collaborate to strengthen their global battery materials supply chain position by optimizing cathode materials and developing diverse cell designs across...

EVs To Cost Less Than Gas Vehicles by 2027, Says Gartner

0
Gartner predicts a faster decline in production costs compared to battery costs, which represent the most significant expense in an electric vehicle, accounting for...
MG

MG Motor To Set Up Battery Assembly Unit At Halol Facility

0
The company plans to investigate battery cell production in collaboration with external partners. Automaker MG Motor India is actively exploring the possibility of assembling and...

Servotech Boosts India’s EV Charging Infrastructure With Manufacturing Facility

0
The new facility is poised to start with an annual production capacity of 24,000 power modules and plan to scale up to 2.4 lakh...

Uno Minda Prepares For Expected Surge In Aftermarket Parts Demand

0
Rakesh Kher, CEO of Uno Minda's Aftermarket Division, notes that the availability of EV replacement parts in the aftermarket will not be immediate. Uno Minda,...