India to Tailor Policy for Semicon Investment .

NEW DELHI, INDIA: Government of India is eagerly looking for investment from semiconductor companies to set up world-class wafer fabrication  plants in the country and for that the government is ready to offer large subsidy and tailor a policy as per the need of investors.

“We are willing to offer large subsidies to people who want to set up world-class fab here. People have to come forward. If fine tuning of the policy will be required, then we will do that,” said Prithvi Raj Chavan, Minister of State for Prime Minister’s Office to CIOL on the sidelines of an event in Greater Noida.

Chavan holds a number of important posts in the government which include his position as Minister of State in the Ministry of Personnel, Public Grievances and Pensions (Additional charge), Minister of State (Independent Charge) of the Ministry of Science and Technology, Minister of State (Independent Charge) of the Ministry of Earth Sciences, Minister of State in the Ministry of Parliamentary Affairs.

“We have the policy in place but we did not get takers for it. We still want someone to come to India and set up world-class fabrication plants,” added Chavan.

India announced its Semiconductor Policy in 2007, under which it offered 20 per cent incentive on the capital expenditure for units in a Special Economic Zone (SEZ) with a minimum investment of over Rs 2,500 crore and 25 per cent to those outside SEZs along with exemption from countervailing duty.

The policy was valid up to March 2010 but has got extension till December 31.

According to ISA–Frost and Sullivan report 2010-11, total market revenues generated in the Indian semiconductor market were $5.39 billion, which is expected to reach $8.04 billion in 2011.

This report mentioned that Indian semiconductor market grew 15.6 per cent in 2009 whereas global market shrunk by 11 per cent from 2008. This report identified wireless handsets, 3G networks, WiMax, notebooks, set-top-boxes and smart cards as primary drivers for the semiconductor market in India.

This report projected that telecommunications infrastructure development related domestic semiconductor consumption in India is expected to grow by a massive 132.5 per cent from 2009 to 2011.

Source : ciol.com