Electronic chip makers will get free land and building for setting up plants of worth about Rs 3,000 crore in Madhya Pradesh, a senior state government official said here.
"Happy to announce that Madhya Pradesh government has approved Analog Semiconductor Fab Policy. Minimum investment under this policy has to be about Rs 3,000 crore. State government will provide free land and reimburse cost of shell (plant building) as well," MP Science and Technology Secretary Hari Ranjan Rao told PTI.
Madhya Pradesh is the first state to come up with electronic chip plant specific policy.
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The secretary was here to attend the IESA Vision Summit.
The analog semiconductors are used in all kind of electronic products to connect various components inside them. Like connecting touch screen of mobile phones with circuit, monitoring mobile phone battery power etc.
Rao said that government has identified 4-5 different locations with 200 acres of contiguous land for establishing semiconductor clusters in the state.
The land will be given for 50 years and will be extended further based on business case.
"Besides this we will provide dedicated power to plants through two grids round the clock and water at doorstep of the plant. It will be provided at internationally competitive tariff for 10 years," Rao said.
MP is the only state that has set up green-field electronics manufacturing clusters in Bhopal and Jabalpur.
The state government will build four lane road to connect electronic chip or semiconductor plant with airport.
"We are also in in talks with commerce ministry at centre for setting up free trade area near airports so that there is hassle free movement of logistics," Rao said.
Indian Electronics and Semiconductor Association Chairman Ashok Chandak said that analog semiconductors play vital role in making IoT (Internet of Things) products--whose function can be controlled using internet.
"Policy contours were discussed with MP government about three months back and today it is in place. We are happy to see MP government taking fast decision when it comes to investment," Chandak said.
Rao said that under the policy, state government will also work out mechanism to reimburse companies some cost of experts that it will bring from abroad to operate plant and at the same time make arrangement with company to develop skilled workforce in the state.
