The government has approved proposals from Micron Semiconductor Technology India and Hubballi Durable Goods Cluster (Aequs Group) to set up special economic zones (SEZs) for semiconductor and electronic component manufacturing, following a recent relaxation in SEZ rules to attract high-tech investments.
Micron will establish its facility in Sanand, Gujarat, over a 37.64-hectare area with an investment of Rs 130 billion. Meanwhile, Aequs Group will set up an SEZ in Dharwad, Karnataka, spanning 11.55 hectares, with a planned investment of Rs 1 billion for electronics component manufacturing.
The decision comes as part of broader policy reforms to encourage domestic manufacturing in sectors considered capital-intensive, import-dependent, and with longer gestation periods. A key amendment now allows SEZs dedicated to semiconductors or electronic components to operate with a minimum of 10 hectares of contiguous land, down from the previous 50 hectares.
In addition, the government has revised the Net Foreign Exchange (NFE) calculation norms to include goods received and supplied on a free-of-cost basis.
