Semiconductor-manufacturing to remain main attraction

Chief Minister Dr. Mohan Yadav has said that semiconductors will be animportant sector in the Global Investors Summit 2025. In view of itsimportance, the State Council of Ministers has approved the “Madhya PradeshSemiconductor Policy-2025”. With the implementation of this policy, thepossibilities of large-scale investment in the field of semiconductor andelectronics manufacturing in the state have increased. Enthusiasm and interestin this sector is being seen among the investors attending the Global InvestorsSummit, which is expected to attract more and more investment in the state.

Chief Minister Dr. Yadav said thatthis policy will help establish asustainable eco-system devel-oped as an electronics andsemiconductor manufacturinghub in the state. Prime MinisterShri Narendra Modi’s vision iscommitted to establishing Indiaas a global hub for semiconductordesign, manufacturing and technolog-ical development. The Prime Ministerbelieves that India’s semiconductor sectoris on the verge of a revolution. His goal isthat 100% of electronics and semiconduc-tors should be manufactured inIndia itself. Chief Minister Dr.Yadav expressed confidencethat Madhya Pradesh will beable to make a significant contri-bution in achieving the goal ofPrime Minister Shri Modithrough the SemiconductorPolicy. Chief Minister Dr. Yadavhas said that this policy will playan important role in taking thestate forward in the field ofsemiconductor manufacturing,which will help in attractingdomestic and foreign investors andopportunities to lead in global compe-tition will be available.

Focus on Investors

Under the Semiconductor Policy, capitalinvestment subsidy (25% of the totalinvestment or 50% of the subsidy provid-ed by the Government of India, whichev-er is less) will be given to investors. Thestate government will provide capitalinvestment subsidy up to 40 percent(maximum Rs 150 crore) to companiesfor non-government approved projects.This subsidy interest rate of 6 percent orapplicable interest rate (whichever isless) will be given for 5 years (maximumRs 10 crore) after setting up the unit.Under the emiconduc-tor Policy, land will bemade available to com-panies at concessionalrates. Also, electricitytariff subsidy of Rs 2per unit will be givenfor the first 10 years.This will reduce theoperating cost andencourage investment.The policy will also pro-vide support for infra-structure, tax exemptionand some additional financialassistance for projects worthmore than Rs 400 crore.

Investors get incentive fund for growth

The Chief Minister said that in the Semiconductor Policy, companiesinvesting in the field of semiconductors and electronics will be speciallyencouraged to invest in research and development (R&D) and techno-logical innovation. Financial assistance will be provided through a spe-cial fund for research in semiconductor technology. The StateGovernment Policy has made provision for a simplified regulatory mech-anism to simplify and expedite the approval process for new projects.The State Government is committed to minimise delays in the approvalprocess and facilitate companies in setting up and expanding units.

Promotion of PPP mode in policy

Public-private partnership (PPP) will be promotedin Madhya Pradesh Semiconductor Policy-2025.This will increase cooperation between govern-ment bodies, academic institutions and the privatesector, as well as encourage foreign direct invest-ment (FDI) and international cooperation. As aresult, global expertise and technology can bebrought to Madhya Pradesh.

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