Government to give Special Incentives for Semi-Conductor Manufacturing Sector

The Minister of State for Communications & Information Technology, Dr. Shakeel Ahmad, informed the Lok Sabha today, in a written reply to a question by Shri Sugrib Singh that the Government has accorded approval to the Special Incentive Package Scheme to attract investments for setting up Semiconductor Fabrication and other micro and nano technology manufacture industries in India. The incentive would be 20 per cent of the capital expenditure if the units are set up in the Special Economic Zones (SEZ). For units set up outside SEZ, the incentive would be 25 per cent of the capital expenditure plus exemption from countervailing duty (CVD). ‘Fab units’ with threshold Net Present Value (NPV) investment of Rs. 2500 crore would be covered by the Special Incentive Package Scheme. For other units in the eco-system, there would be a threshold NPV investment of Rs. 1000 crore. The details to implement the scheme are being finalised.

Dr. Ahmad further stated that the extent to which manufacturing units of semiconductor will be set up would depend upon the response of the investors to make such investments following the approval of this Scheme. The investment and employment which will be generated will depend upon the number of such units set up.

Source : Press Information Bureau

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