New Delhi, June 9 (IANS) Micron Semiconductor Technology India Pvt Ltd (MSTI) would invest an estimated Rs 13,000 crore to establish its SEZ facility in Sanand, Gujarat over an area of 37.64 hectare for manufacturing of semiconductors and electronic components, the government informed on Monday.
Hubballi Durable Goods Cluster (Aequs Group) will also establish its SEZ in Dharwad, Karnataka over an area of 11.55 hectare to manufacture electronics components with an estimated investment of Rs. 100 crore.
The Commerce Ministry has introduced pioneering reforms in the Special Economic Zones (SEZ) rules to address the specialized needs of semiconductor and electronics component manufacturing sectors.
Since manufacturing in these sectors is highly capital intensive, import dependent and involve longer gestation periods before turning profitable, rule amendments have been carried out to promote pioneering investments and boost manufacturing in these high technology sectors.
After amendments in Rule 5 of SEZ Rules, 2006, an SEZ set up exclusively for the manufacturing of semiconductors or electronic components will require a minimum contiguous land area of only 10 hectares, reduced from the earlier requirement of 50 hectares.
Further, amendment to Rule 7 of SEZ Rules, 2006, allows the Board of Approval for SEZs to relax the condition requiring SEZ land to be encumbrance-free in cases where it is mortgaged or leased to the Central or State Government or their authorized agencies.
The amended Rule 53 will allow the value of goods received and supplied on a free-of-cost basis to be included in Net Foreign Exchange (NFE) calculations and assessed using applicable customs valuation rules.
Moreover, amendments have been made in Rule 18 of the SEZ Rules to allow SEZ units in semiconductor as well as electronics component manufacturing sector to also supply domestically into the Domestic Tariff area as well after payment of applicable duties.
“The amendments will boost high-tech manufacturing in the country, spur growth of semiconductor manufacturing ecosystem and create high skilled jobs in the country,” said the ministry.
These amendments have been notified by the Department of Commerce. Subsequently, the Board of Approval for SEZs has accorded approval to the proposals received from Micron Semiconductor Technology India Pvt Ltd (MSTI) and Aequs Group.
–IANS
na/
*Except for the headings & sub-headings, this story has not been edited by The enewstime.in and has been published from IANS feed.
