Gujarat Govt Unveils Semiconductor Policy, to Set Up Semicon City

Gujarat Govt Unveils Semiconductor Policy, to Set Up Semicon City
Calendar 12 May,2023 | Avirahi Group

New plans with the Dholera Special Investment Region (SIR) – land, power, and water will be provided at discounted rates, and will be the site of the creation of the Semicon City on 5,000–10,000 acres. If the promised plans works, the demand for dholera residential plots will see a huge rise.

The Gujarat government committed to generating two lakh new employment and a “Semicon City” on 5,000–10,000 acres at the Dholera Special Investment Region (SIR), where land, power, and water will be provided at discounted prices, as part of its Semiconductor Policy 2022–’27, which was announced recently.

“The Government of Gujarat is desirous of becoming a pioneer state in realising Government of India’s mission to make India a global hub for ESDM sector and help in creating a robust semiconductor and display manufacturing ecosystem, equaling that of the existing East-Asian Region,” Gujarat Chief Minister Bhupendra Patel stated in the policy he unveiled.

The goal of the policy is to draw silicon photonics, display fabrication, semiconductor assembly, testing, marking, and packaging facilities to Gujarat. This specific semiconductor policy is anticipated to coexist with the state government’s Electronic Policy 2016-’21, which is anticipated to be amended soon.

No state government has before released a comprehensive semiconductor policy. In some of the Indian states, there are some electronic regulations. The semiconductor policy will be put into effect alongside the electronic policy by the Gujarat State Electronic Mission. With such enterprising talks in the move, the dholera smart city plot price can see a huge twist in recent times.

An investment of Rs 20,000–30,000 crore is needed for one semiconductor production unit. Taiwan now dominates this market, and as time goes on, demand for these chips will rise tremendously, according to Vijay Nehra, secretary of the state government’s science and technology department. Gujarat claims to speed up approvals, streamline land allotments, and provide easy access to utilities like power, water, and gas to qualified projects despite having a less robust information technology and electronics environment than some of the larger states.

The first 200 acres needed for a fabrication project will receive a 75% subsidy from the state. A 50% subsidy would be offered for any additional land needed for the project or for subsequent ventures authorised under the India Semiconductor Mission. Projects established in Dholera SIR are the only ones eligible for the land subsidy.

There are plenty of land available in Dholera (SIR), thus the govt is planning to build a Semicon city there. Within the next five years, two lakh employment will be produced in this city, which would span between 5,000 and 10,000 acres.

Additionally, projects would be eligible for a 10-year, Rs 2 per unit power rate incentive. Power subsidy payments will be made yearly in installments. In addition to the exemption from paying electricity duty, this subsidy is provided. The government may offer power tariff subsidies at a higher rate for a short while for projects involving large FDI or projects moving from abroad.

For a five-year term, water would be delivered to all eligible projects at a cost of Rs 12 per cubic metre. After that, over the following five years, water rates will climb at a rate of 10% each year.
The Gujarat government will be able to provide further capital assistance to any projects that have been awarded approval by the India Semiconductor Mission, on top of what the Indian government has already provided. This help will be supplied at a rate equal to 40% of the GoI’s capex assistance.


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