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28/07/2022 12:46pm

Gujarat first state to announce Semiconductor policy, offers heavy subsidy on land, power & water tariffs

image Gujarat first state to announce Semiconductor policy, offers heavy subsidy on land, power & water tariffs

Ahmedabad, July 28 (KNN) Gujarat becomes the first state in the country to announce a dedicated semiconductor policy 2022-27. The state government aims to generate more than 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.


Under the new policy, the state government will provide heavy subsidy 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.

The projects approved under the Design-linked Incentive scheme of the Government of India will not be eligible for availing the benefits under the new policy, said the state government press release.

Those projects that will meet the eligibility criteria will be given 75 per cent subsidy on procurement of first 200 acres of land in the SIR, while additional land for upstream or downstream projects will get 50 per cent subsidy on land cost.

Moreover, one-time reimbursement of 100 per cent stamp-duty and registration fees paid to the government, fixed water tariff at Rs 12 per cubic meter for five years and a capital subsidy of 50 per cent  for desalination plants are the fiscal benefits under the new policy.  (KNN Bureau)


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