Numerous chip ancillary companies are looking forward to set-up allied units close to Micron plant and they are looking to purchase new land
In an effort to further boost the growth of semiconductor and electronic manufacturing units in India, the union government has proclaimed to unleash a revised incentive scheme of Rs 10,000 crore. According to an exclusive report by the Economic Times, this revised scheme will be an extended version of the ongoing Scheme for the Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), which is highly expected to be unleashed in the beginning of the coming financial year.
Media reports also added that the government officials said that rather than following the current reimbursement procedure, the revised scheme is likely to allocate funds on a “pari-passu” basis. While speaking of fiscal, ‘equal footing’ implies that a minimum of two parties to a fiscal contract are all treated equally. A couple of days back, S Krishnan, Secretary, Ministry of Electronics and IT (Meity) at the CII Electronic Summit stated that the center is deeply working on another version of the electronic components, which is known as Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS).
At the CII summit Murugappa Group headquartered in Tamil Nadu and HCL Group have shown interest to enter into the assembly, testing, marking, and packaging (ATMP) sector. According to ET, an anonymous government official said that a couple of ancillary industries and component makers are keen to establish new factories in India to help these ATMP units and are looking for aid from the union government.
After Micron Technology announced to set-up its ATMP unit in the Sanand region of Gujarat, a lot of ancillary companies are looking forward to set-up allied units in the same area. They are looking to purchase new land adjacent to the Micron plant. According to the experts, ancillary units play an imperative role wherever new chip fabrication factories are built. Media reports further added that an official in the ministry clearly said that aggregation of Rs 3,200-3,300 crore for the scheme is almost finished. In the revised scheme, the government should look forward to escalate the amount to two to three times more in comparison to the current amount.
