Preliminary work on the brand new package, which is “in all likelihood be much bigger than the previous one”, has already begun, despite the fact that bulletins on this regard might be made solely as soon as the brand new govt takes cost publish the nationwide elections, they stated.
“The new package would be one of the key agendas for the new govt and will be taken up on a priority basis,” one of many sources stated, stating that new proposals which might be coming in for semiconductors necessitate a contemporary package.
“The matter would be tabled before the new Cabinet as some of the proposals are at an advanced stage and would require immediate assurances from the state in terms of incentives,” the supply stated.
Success of Dec 2021 package is prompting the government to work out a brand new one, particularly in view of the aggressive stance of nations such because the US and China, which have introduced a lot greater packages for firms which might be investing in semiconductors.
Under the present plan, govt extends fiscal help of up to 50% of a venture’s value to eligible show and semiconductor fabricators. This has been nearly exhausted after the spate of investments that got here in.
India, which had beforehand failed to get any credible proposals for semiconductor manufacturing after attempting for many years, lastly managed to rating huge after American Micron emerged as the primary main participant to enter the area with a Rs 22,500-crore testing and packaging unit in Gujarat in June final yr.
This was adopted up with approval to three proposals price almost Rs 1.three lakh crore in Feb this yr. These comprise: Rs 91,000-crore venture of Tata Electronics to set up India’s first semiconductor fab unit with Taiwanese Powerchip Semiconductor Manufacturing Corp at Dholera in Gujarat; Rs 27,000-crore Semiconductor Assembly and Test (TSAT) unit by Tata in Morigaon, Assam; and Rs 7,600-crore venture of CG Power with Japanese Renesas Electronics and Stars Microelectronics of Thailand.
Govt has now acquired new proposals that are at a really superior stage of discussions. These embody a show fab unit proposal – the nation’s first – by Japanese Sharp that may see investments of up to Rs 40,000 crore. There can be a Rs 90,000 crore plan of Israel’s chipmaker Tower Semiconductors for investments in India.
“The proposals need urgent solutions, especially as the companies want clarity from govt on incentive support,” the supply added.