Semiconductor manufacturing to be an important attraction of GIS: MP CM

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Madhya Pradesh Chief Minister Mohan Yadav said on Friday that the semiconductor manufacturing sector is set to be the centre of attraction for investors at the upcoming Global Investors Summit (GIS). The Madhya Pradesh government has approved the 'Madhya Pradesh Semiconductor Policy 2025' just before the GIS, and it will be presented at the summit to be held on February 24-25 in Bhopal.

 

Yadav said that enthusiasm and interest are being seen in this sector among potential investors at the GIS, so it is expected that there will be increased investment in this sector. He added that the policy will help in setting up electronics and semiconductor manufacturing centres in the state.

 

Under this policy, the government has announced a subsidy of 25 per cent to industries investing in this sector (details awaited). Additionally, these industries will be provided subsidised electricity at the rate of Rs 2 per unit for 10 years from the date of establishment. The government has set a budget of Rs 1,000 crore for this over the next five years. Private projects will be provided capital grants of 40 per cent or a maximum of Rs 150 crore. Public-private partnership (PPP) mode will be promoted in the new policy.

 

Additional Chief Secretary, Department of Science and Technology, Sanjay Dubey said that land will be allotted to companies in the semiconductor sector as per the Investment Promotion Policy of 2023. He said that if a company invests more than Rs 400 crore, it can be provided with separate infrastructure support, tax concessions, and additional financial assistance.

 

Officials estimate that an investment of Rs 2,700 crore can be attracted in the semiconductor sector over the next five years, potentially generating exports of around Rs 3,800 crore.