On Monday, the government authorised Micron Semiconductor Technology India and Hubballi Durable Goods Cluster to establish SEZs for the production of semiconductors and electronic components.
The company’s SEZ will be situated in Sanand, Gujarat, over 37.64 hectares with an investment of ₹13,000 crore. At the same time, Aequs is launching an SEZ in Dharwad, Karnataka, on 11.55 hectares for electronics components for a total investment of ₹100 crore.
Also Read: Sashidhar Jagdishan: MD and CEO of HDFC – Why was He Charged with Fraud?
This is being done after certain SEZ rules were relaxed to attract the manufacture of chips and electronics.
The commerce ministry added that the Board of Approval for SEZs has endorsed the proposals of MSTI for semiconductors and Aequs Group for electronic components, submitted by both companies.
Creating items in these sectors requires heavy technology investment and takes a lot of time before they turn profitable. Because of this, the rules are updated to stimulate trailblazing investments and raise manufacturing in the technology industry.
Following the rule, anyone wanting to set up an SEZ for semiconductors or net foreign exchange must have at least 10 hectares; previously, it required 50 hectares.
Now, all goods obtained or sent without charge will be part of the calculation of net foreign exchange (NFE).
It was also said that amendments under Rule 18 of the SEZ Rules give SEZ units in semiconductor and electronic component manufacturing permission to provide goods domestically after payment of the required duties.
The legislation will improve high-tech manufacturing at home, encourage the rise of the semiconductor manufacturing sector, and give rise to lots of skilled jobs.
