Govt receives proposals for 2 semiconductor mfg units

Telecom Minister Kapil Sibal today said the government has received two proposals for setting up semiconductor manufacturing plants (fabs) in the country and they will be sent to the Cabinet in the next two weeks for consideration.

"We have received two proposals to set up semiconductor manufacturing plants in India which will go to Cabinet in two weeks," Sibal told reporters here on the sidelines of CII's IT Summit.

The investment envisaged for the two units is around Rs 25,000 crore. The exact level of government support for these plants will be decided through negotiation with the chip makers.

The fabs are expected to bootstrap innovation and R&D, especially in the area of electronics which will help generate about three crore jobs (direct and indirect) by 2020.

The government has announced zero customs duty for the equipment required for setting up of the semiconductor (electronic chips) plants.

Sibal also said the Cabinet will consider the Electronics Delivery of Services Bill this evening.

"Today, in the evening, we have Cabinet meet where Electronics Delivery of Services Bill will come up for consideration. Just to be sure that the state governments notify the (government) services that they will provide electronically in next 5 years," Sibal said.

State governments will get additional three years, at the end of five years, to ensure all services are provided electronically, he said.

"That does not mean that services will not be available manually as infrastructure is built all electronically services should be provided electronically. That will answer allegation of corruption. This will bring transparency," Sibal added.