The state cabinet of Odisha has approved amendments to the Odisha Semiconductor Manufacturing and Fabless Policy, 2023, to enhance investor attraction for establishing semiconductor and electronic chip manufacturing facilities as well as fabless design units in the state.
The amendments focus on bolstering fiscal support mechanisms, including interest subvention, production linked incentives (PLI) and investments in research and development (R&D) and skill development and training.
Under the revised provisions, mega projects exceeding Rs 5 billion in investments will have easier access to an upper limit of Rs 250 million per annum for a period of seven years towards interest subsidy. The previous 5 per cent cap for interest subvention has been eliminated to facilitate larger investments in semiconductor manufacturing. Further, mega projects will be entitled to reimbursement of R&D expenditures up to Rs 20 million annually for a period of 10 years. Additionally, all units are eligible to apply for PLI for a continuous period of five years within the seven-year period following the commencement of production.
In terms of skill development, eligible units will receive reimbursement of up to Rs 20 million per annum for five years to facilitate the training of their employees engaged in core operations.
