Government Eases SEZ Norms to Boost Semiconductor, Electronics Manufacturing
- Micron to invest Rs 13,000 crore in Gujarat; Aequs to invest Rs 100 crore in Karnataka for electronics SEZs.
- Minimum land requirement for semiconductor/electronics SEZs reduced from 50 to 10 hectares.
- SEZ units can now sell in the Indian market after paying duties; NFE norms updated to include free-of-cost goods.
In a significant push to strengthen India’s high-tech manufacturing ecosystem, the government has eased Special Economic Zone (SEZ) regulations, paving the way for targeted investments in the semiconductor and electronics components sectors.
Micron Semiconductor Technology India Pvt Ltd (MSTI) and Aequs Group have secured approvals from the SEZ Board to establish dedicated SEZs. Micron will develop a 37.64-hectare facility in Sanand, Gujarat, with an investment of Rs 13,000 crore, while Aequs will invest Rs 100 crore to set up an 11.55-hectare SEZ in Dharwad, Karnataka.
The move follows key regulatory amendments, including a reduction in the minimum land requirement for setting up semiconductor and electronics SEZs from 50 hectares to 10 hectares. These changes aim to remove entry barriers and promote rapid growth in the sector.
Additionally, the government has relaxed land encumbrance rules and now permits SEZ units to sell in the domestic market after paying duties. The reforms also recognize the value of free-of-cost goods in Net Foreign Exchange (NFE) calculations, aligning policy with industry practices.
