On Wednesday, the Gujarat government unveiled a plan to encourage fresh investment in the semiconductor industry by providing incentives and subsidies to establish businesses there. The "Gujarat Semiconductor Policy," announced by Chief Minister Bhupendra Patel, would be in effect until 2027, according to a statement from the state's Minister of Science and Technology. According to the plan, the state government would establish "Dholera Semicon City" close to Ahmedabad, where qualified projects will receive subsidies for establishing manufacturing facilities. 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.
The policy was created in accordance with the India Semiconductor Mission of the Center. Over the next five years, the policy would create two lakh new jobs in the semiconductor industry in the state, said Vaghani. According to the plan, a "Dholera Semicon City" will be built by the state government at the Dholera Special Investment Region close to Ahmedabad. On the first 200 acres of land purchased at the facility for the construction of manufacturing units, qualified projects will receive a 75% subsidy.
According to the press release, good quality water would be delivered to the approved projects for the first five years at the cost of Rs 12 per cubic metre. For the first 10 years of production, the eligible manufacturing units will also receive a power tariff subsidy of Rs 2 per unit, it was stated, adding that such enterprises will be exempt from paying any electricity duty.
As part of the proposal, the state government has also stated that it will fully compensate investors for any stamp duty they first 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.
