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| Govt to provide incentives for electronic chip manufacturing |
| Press Trust of India / New Delhi Feb 17, 2012, 21:18 IST |
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The government today said it will provide incentives to companies for setting up semiconductor wafer fabrication facilities.
Discussions are underway with various companies on the issue and the government is open to providing incentives to help them in setting up electronic chip making plants, said Ajay Kumar, Joint Secretary, Department of IT.
"You tell us what are the kinds of incentives you require to set up a fab in India," Kumar said on the sidelines of a PHD Chamber event.
He, however, declined to name the companies.
Semiconductor wafer fabrication plants are used for manufacturing electronic chips, which are at the heart of the communication gadgets and electrical devices.
"A high level empowered committee has been set up with a mandate to identify technology and investors," he added.
Estimates show that India's demand for electronics products (including telecom) will be $400 billion by 2020.
At the current rate of growth, the production of electronics hardware is likely to grow to $104 billion by 2020, creating a demand and supply gap of $296 billion, which would have to be met through imports.
Experts are of the opinion that the electronic imports bill could surpass the crude oil import expenses by then.
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