The Tamil Nadu government has announced a new policy to attract semiconductor and advanced electronics projects, offering substantial financial incentives to selected companies. Under the Tamil Nadu Semiconductor and Advanced Electronics Policy 2024, projects chosen by the central government for its $10 billion chip subsidy plan will receive up to 50 percent additional financial incentives if they establish their manufacturing units in Tamil Nadu.
These incentives include benefits such as training personnel, stamp duty, land concessions, and electricity concessions. In addition, global research or design entities in the chips and electronics sector that employ residents of Tamil Nadu will be eligible for up to 30 percent payroll reimbursement for a duration of three years, with a cap at Rs 20,000 per employee per month.
The state government will also reimburse 50 percent of the expenditure incurred for in-house research and development related to patents, copyright, trademarks, and geographical indications registration, up to a maximum of Rs 1 crore. To further support the projects, an interest subvention of 5 percent on term loans will be provided.
To avail of the benefits, companies must meet certain criteria. They should have a minimum investment threshold of Rs 200 crores and create a minimum employment threshold of 150 jobs for the initial investment. Additionally, they must commit to a minimum of 20 percent in-house value addition from the manufacturing facility. For every additional Rs 50 crore of investment, a minimum of 35 jobs must be generated within the standard investment period of four years.
The announcement of these incentives comes as Tamil Nadu aims to regain its status as an investment destination, facing tough competition from other states such as Karnataka, Maharashtra, Gujarat, and Telangana. The state’s recent investor summit saw significant commitments from major industrial houses, including Tata Electronics, JSW Energy, and TVS Group. These investments are expected to boost the economy and create thousands of jobs.
The source of the article is from the blog yanoticias.es