Bhubaneswar : Odisha gives a tough competition to peer States in attracting investments in chips manufacturing in the State.
Odisha is offering 30% to the companies along with other incentives for setting up semi -conductor plants in the State. This is over and above the 50% fiscal support from the Central government.
With doling out competitive offer, the State has started attracting investment in the sector.
The UK-based SRAM & MRAM Group’s Indian unit, SRAM & MRAM Technologies and Projects India Pvt Limited, proposes to invest ₹30,000 crore in the first phase to establish a semiconductor fabrication unit in Ganjam district, Odisha.
According to a report by India Electronics & Semi-conductor Association (IESA), four States -Gujarat, Uttar Pradesh, Tamil Nadu and Odisha-have declared specific policies for chip projects. The report says while Gujarat offers 20% capital subsidy, Uttar Pradesh and Tamil Nadu have pegged the capital subsidy at 25% each. Odisha offers 30% capital subsidy on the project cost.
The IESA report says that Macron and Tata Group have announced projects in Gujarat, while Hiranandani Group committed investment in UP.
The Centre under the Rs.76,000 crore India Semi -conductor Mission is offering 50% fiscal support to projects in India. It is now considering two semi -conductor fabrication proposals and four outsourced semi -conductor assembly & test (OSAT) proposals besides three proposals for compound fabrication.
So far four States have put in place specialised semi-conductor policy, while eight States have a clear mention of offerings to the projects.