The Gujarat government has announced a dedicated ‘Gujarat Semiconductor Policy 2022-27’ with a view to generating at least 2,00,000 new employment opportunities during a period of five years. The Gujarat government has also decided to develop a “semicon city” which would be a part of the Dholera Special Investment Region. The projects approved under the Design-linked Incentive scheme of the Government of India will not be eligible for availing of the benefits under the new policy, said the state government press release.
Under the new policy:
- The state government will provide heavy subsidies on power, land and water tariffs for entrepreneurs interested in investing in semiconductors or display fabrication manufacturing.
- The primary objective of the current government is to make Gujarat a forerunner in developing the Electronics System Design & Manufacturing (ESDM) ecosystem.
- As per reports, the Gujarat policy focuses on guiding a significant portion of investments made under these India Semiconductor Mission (ISM) policies towards Gujarat.
- The policy will provide additional capital assistance at 40 per cent of the capex assistance extended by the Centre for the projects approved under ISM.
- The semiconductor policy will provide assistance to one project each, semiconductor and display fabrication. In case of multiple applications, the State-appointed high-powered committee will make recommendations on the basis of credentials of projects.