Micron to invest ₹13,000cr in Gujarat SEZ for semiconductor manufacturing
What's the story
Micron Semiconductor Technology India Pvt Ltd (MSTI) and Aequs Group have received the green light from the government's Special Economic Zone (SEZ) Board to set up SEZs for semiconductor and electronic component manufacturing in India.
Micron plans to invest ₹13,000 crore in a 37.64-hectare facility at Sanand, Gujarat.
Meanwhile, Aequs Group will invest ₹100 crore for an 11.55-hectare SEZ in Dharwad, Karnataka.
Regulatory changes
Reforms in SEZ regulations
The approvals come after the government introduced reforms in SEZ regulations to promote high-tech manufacturing.
The key amendments include reducing the minimum contiguous land requirement for semiconductor or electronics SEZs from 50 hectares to 10 hectares.
This will help ease entry barriers and encourage targeted investments in these sectors.
Market access
New regulations also relax land encumbrance conditions
The new SEZ regulations also relax land encumbrance conditions and allow SEZ units in the semiconductor and electronics sectors to supply domestically after paying duties.
The changes are aimed at broadening market access for these industries.
They also permit the inclusion of free-of-cost goods' value in Net Foreign Exchange calculations, reflecting industry realities more accurately.