New Delhi, June 9 (UNI) The government has notified Special Economic Zones (SEZ) reforms to boost semi-conductor and electronics component manufacturing sectors in the country.
The amendments notified by the Department of Commerce, will boost high-tech manufacturing,
spur growth of semiconductor manufacturing ecosystem and create high skilled jobs, an official spokesperson said here on Monday.
Subsequently, the Board of Approval for SEZs has approved the proposals received from Micron Semiconductor Technology India Pvt Ltd (MSTI) and Hubballi Durable Goods Cluster Private Ltd (Aequs Group) for setting up of SEZs for manufacturing of semiconductors and electronic components respectively.
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, the spokesperson said.
After amendments in Rule 5 of SEZ Rules, 2006, an SEZ set up exclusively for 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.
Micron will establish its SEZ facility in Sanand, Gujarat over an area of 37.64 Ha with an estimated investment of Rs. 13,000 crore, while Aequs will establish its SEZ in Dharwad, Karnataka over an area of 11.55 Ha to manufacture electronics components with an estimated investment of Rs 100 crore.
UNI RB PRS