Gujarat releases a semiconductor policy in an effort to draw in new investments

28 Jul 2022 , 07:52 AM

By providing incentives and subsidies to launch businesses in the state, the dedicated strategy is likely to attract new investment in the semiconductor industry.

According to the strategy, the state government would establish “Dholera Semicon City” close to Ahmedabad, where qualified projects will receive subsidies for establishing industrial facilities. The “Gujarat Semiconductor Policy,” announced by Chief Minister Bhupendra Patel, will be in effect until 2027, according to PTI, which cited state Science and Technology Minister Jitu Vaghani.

According to the minister, Gujarat is now the only state in the nation to establish a specific policy for the semiconductor and display manufacturing industry. According to the plan, a “Dholera Semicon City” will be built by the state government at the Dholera Special Investment Region close to Ahmedabad.

The facility would provide qualified enterprises with a 75% subsidy on the first 200 acres of land purchased for the construction of manufacturing units. According to the press release, good quality water would be delivered to the approved projects for the first five years at a cost of Rs12 per cubic metre.

The statement added that such projects would be exempt from paying any electricity duty and that the eligible manufacturing units would also receive a power tariff discount of Rs2 per unit for the first 10 years of starting production.

In order to entice investors, the state government has also declared that it will fully compensate investors for any stamp duty they initially pay when leasing or purchasing land.

The state government will set up a single window process to grant all essential permissions from one location, according to the statement, in order to reduce bottlenecks and deliver speedy clearances to investors.