The newly launched Tamil Nadu Semiconductor and Advanced Electronics Policy 2024 has set ambitious goals to propel Tamil Nadu to the forefront of the semiconductor and advanced electronics industry value chain. The policy, unveiled by Chief Minister MK Stalin at the Global Investors Meet, aims to generate high-skilled employment opportunities, foster innovation, and drive technological advancements.
One of the primary objectives of the policy is to attract anchor investments in semiconductor and advanced electronics manufacturing. It also aims to establish a robust semiconductor design ecosystem in the state through incentives, funding, and collaborations between industry, academia, and the government. Furthermore, the policy seeks to increase the contribution of Tamil Nadu to India’s electronics exports from the current 30% to 40% by 2030.
To support the growth of the industry, the eligible units will receive a Capital Subsidy from the Government of Tamil Nadu, amounting to up to 50% of the CAPEX assistance provided by the Government of India. The capital subsidy mechanism involves the establishment of an escrow account between the State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT) and the project company. Payments will be released pro rata based on the mobilization of shares.
In addition, the policy incentivizes prototyping within the state by offering eligible units a subsidy of 25% of the CAPEX for establishing product testing and prototyping facilities, up to a maximum of ₹1 crore.
To encourage industrial development, the policy grants a 100% stamp duty exemption for the lease or purchase of land, sheds, or buildings intended for industrial use on land obtained from SIPCOT. For private lands, a stamp duty concession will be provided as a back-ended subsidy, contingent upon fulfilling investment and employment commitments.
Companies in the electronics sector in Tamil Nadu are eligible for a Structured Package of Incentives and Standard Incentives under existing policies. The Structured Package of Incentives for Advanced Electronics Manufacturing will be applicable to new or expansion projects with investments made from January 1, 2024. To avail of these incentives, companies must meet minimum investment and employment thresholds set by the policy.
The Tamil Nadu Semiconductor and Advanced Electronics Policy 2024 is a significant step towards positioning the state as a major player in the semiconductor and advanced electronics industry. By fostering strategic investments, nurturing talent, and promoting collaboration, the policy aims to create a thriving ecosystem that not only drives economic growth but also strengthens India’s position in the global market.
The source of the article is from the blog j6simracing.com.br