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India Gazette
14 hours ago
- Business
- India Gazette
Centre eases SEZ rules to boost semiconductor, electronics component manufacturing
New Delhi [India], June 9 (ANI): The central government has introduced pioneering reforms in the Special Economic Zones (SEZ) rules to address the specialised needs of semiconductor and electronics component manufacturing sectors. Since manufacturing in these sectors is highly capital-intensive, import-dependent and involves 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, an 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 authorised 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 the semiconductor as well as electronics component manufacturing sector to also supply domestically into the Domestic Tariff area after payment of applicable duties. The amendments will boost high-tech manufacturing in the country, spur growth of the semiconductor manufacturing ecosystem and create high-skilled jobs in the country. These amendments were notified by the Department of Commerce on June 3, 2025. Subsequently, the Board of Approval for SEZs has accorded approval to the proposals received from Micron Semiconductor Technology India Pvt Ltd (MSTI) and Hubballi Durable Goods Cluster Private Ltd (Aequs Group) for the setting up of SEZs for the manufacturing of semiconductors and electronic components, respectively. Micron will establish its SEZ facility in Sanand, Gujarat, spanning an area of 37.64 Hectares with an estimated investment of Rs. 13,000 crores. Meanwhile, Aequs will establish its SEZ in Dharwad, Karnataka, covering an area of 11.55 Hectares to manufacture electronics components, with an estimated investment of Rs. 100 crores. The semiconductor industry in India is still in a nascent stage, with various local and multinational companies intending to tap its vast potential. Chip shortages during Covid realised the importance of indigenous manufacturing to fill the deficiency, for national security and to galvanise indigenous innovation. Five semiconductors are under construction in Gujarat and Assam. In May 2025, the Union Cabinet approved a semiconductor manufacturing unit in Jewar, Uttar Pradesh, India's sixth. It will be a joint venture of HCL and Foxconn, to be set up near the Jewar airport. Production will start from 2027. The works on other five units are currently underway, and of them is expected to be inaugurated later this year, Union Minister Ashwini Vaishnaw told reporters in May. (ANI)
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Business Standard
14 hours ago
- Business
- Business Standard
Govt clears SEZ proposals of Micron, Aequs for chip, electronics units
The government on Monday said it has approved the proposals from Micron Semiconductor Technology India and Hubballi Durable Goods Cluster (Aequs Group) for setting up SEZs for manufacturing of semiconductors and electronic components. Micron will establish its SEZ facility in Sanand, Gujarat, over an area of 37.64 hectares with an estimated investment of Rs 13,000 crore, while Aequs will establish its SEZ in Dharwad, Karnataka, over an area of 11.55 hectares to manufacture electronics components with an estimated investment of Rs 100 crore. The decision followed the easing of certain SEZ (special economic zone) rules to promote the manufacturing of semiconductors and electronics components. "Subsequently, the Board of Approval for SEZs has accorded approval to the proposals received from Micron Semiconductor Technology India Pvt Ltd (MSTI) and Hubballi Durable Goods Cluster Private Ltd (Aequs Group) for setting up SEZs for manufacturing of semiconductors and electronic components, respectively," the commerce ministry said in a statement. Since manufacturing in these sectors is highly capital intensive, import dependent and involves longer gestation periods before turning profitable, rule amendments have been carried out to promote pioneering investments and boost manufacturing in these high technology sectors, it said. As per a change in the rule, 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. Now, the value of goods received and supplied on a free-of-cost basis will be included in Net Foreign Exchange (NFE) calculations. "Moreover, amendments have been made in Rule 18 of the SEZ Rules to allow SEZ units in the semiconductor as well as electronics component manufacturing sector to also supply domestically into the Domestic Tariff area after payment of applicable duties," it added. The amendments will boost high-tech manufacturing in the country, spur the growth of the semiconductor manufacturing ecosystem and create high-skilled jobs in the country, it added. These amendments have been notified by the Department of Commerce on June 3 2025. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Hans India
14 hours ago
- Business
- Hans India
SEZ reforms: Micron to invest Rs 13,000 crore in Gujarat for chip, component manufacturing
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.
Mint
15 hours ago
- Business
- Mint
Centre notifies SEZ reforms to boost semiconductor, electronics manufacturing
New Delhi: The central government has announced a series of policy relaxations for special economic zones (SEZs) aimed at boosting high-tech manufacturing, particularly in semiconductors and electronic components, within these zones, the Ministry of Commerce & Industry said in a statement on Monday. These changes are designed to attract pioneering investments, ease regulatory hurdles, and strengthen India's position in the global semiconductor value chain, the ministry said. A key reform involves amending Rule 5 of the SEZ Rules, 2006, which reduces the minimum contiguous land requirement for SEZs dedicated to semiconductor or electronics component manufacturing from 50 hectares to just 10 hectares. In addition, Rule 7 has been amended to allow the Board of Approval to relax encumbrance-free land norms when land is mortgaged or leased to the central or state governments, or their authorised agencies. The government has also modified Rule 53 to permit the value of goods received and supplied free of cost to be included in Net Foreign Exchange (NFE) calculations, under customs valuation norms. Another important change under Rule 18 now allows SEZ units in these sectors to sell goods in the domestic tariff area after paying applicable duties. These amendments, notified by the Department of Commerce on 3 June, 2025, are expected to spur investment in capital-intensive, import-dependent industries with long gestation periods—such as semiconductors—while also generating highly skilled employment. 'The amendments will boost high-tech manufacturing in the country, spur the growth of the semiconductor ecosystem, and create highly skilled jobs,' said the commerce ministry statement. Following these reforms, the Board of Approval for SEZs has cleared two proposals: Micron Semiconductor Technology India Pvt Ltd (MSTI) and Hubballi Durable Goods Cluster Pvt Ltd (Aequs Group). Micron will establish a semiconductor manufacturing SEZ in Sanand, Gujarat, covering 37.64 hectares with an estimated investment of ₹ 13,000 crore. Aequs will set up an electronics components SEZ in Dharwad, Karnataka, spanning 11.55 hectares with an investment of approximately ₹ 100 crore.
