Gujarat Government Announces Semiconductor Policy, Offers Incentives for Investment in Sector

The Gujarat government on Wednesday announced a dedicated policy to attract new investment in the semiconductor sector by offering incentives and subsidies to start operations in the state. Chief Minister Bhupendra Patel unveiled the ‘Gujarat Semiconductor Policy’, will remain in force till 2027, state Science and Technology Minister Jitu Vaghani said in a statement.

Under the policy, the state government will set up ‘Dholera Semicon City’ near Ahmedabad where eligible projects will be given subsidy for setting up manufacturing units, the release said.

Gujarat has now become the first state in the country to have a dedicated policy for the semiconductor and display production sector, the minister claimed.

“The policy has been designed in line with the Centre’s India Semiconductor Mission. We expect that our policy would generate two lakh new jobs in the semiconductor sector during the next five years in the state,” Vaghani said.

Under the policy, the state government will set up ‘Dholera Semicon City’ in the Dholera Special Investment Region near Ahmedabad.

At the facility, eligible projects will be given 75 percent subsidy on purchase of first 200 acres of land for setting up manufacturing units.

The eligible projects will be provided good quality water at the rate of Rs. 12 per cubic meter for the first five years, the release said.

The eligible manufacturing units would also get power tariff subsidy of Rs. 2 per unit for the first 10 years of going into production, it said, adding that such projects will be exempted from paying any electricity duty.

To encourage investors under the policy, the state government has also announced to reimburse 100 percent of stamp duty which investors would pay for the first time for taking land on lease or on land transfer.

To remove bottlenecks and provide quick clearances to investors, the state government will establish a single window mechanism to provide all the necessary approvals from one place, the release said.