Odisha Govt decides to provide additonal fiscal support of 25 % to Mega Semiconductor Projects approved by ISM 2.0
By B.Maharana
Bhubaneswar, August 12
In a significant step towards Odisha’s position in strategic Semiconductor sector and to attract the potential investors, the state Government has decided to provide additional fiscal support of 25 per cent of the eligible capital expenditure (capex) for the projects approved by India Semiconductor Mission (ISM)2.0.
The decision was taken at the Cabinet meeting held at Lok Seva Bhavan under the chairmanship of the Chief Minister Mohan Charan Majhi on Wednesday. The cabinet has approved the third amendment to the Odisha Semiconductor Manufacturing and Fabless Policy for the purpose.
Briefing the press , the Chief Secretary Anu Garg said the amendment has been undertaken as a proactive measure in response to stakeholder feedback and evolving national policy priorities. The new measures introduces enhanced financial provisions to support emerging segments such as Semiconductor Equipment manufacturing and R&D, Manufacturing of Semiconductor-grade chemicals, Speciality Gases and Materials along with supply chain components, Research and Development for the advanced technologies with a view to strengthening the over all semiconductor ecosystem in the state, she pointed out.
She said the support would be disbursed on a pari passu basis with Government of India’s fiscal assistance , aligned with project milestones and corresponding releases as approved by the ISM.
However, the enabling provision for customized incentive packages for Mega Projects in Semiconductor Equipment, Input supply chain and Raw Materials subject to the approval by the State Cabinet on recommendation of High Level Committee constituted under the Chairmanship of the Chief Secretary .
The new measures are expected to generate high value direct and indirect employment across semiconductor manufacturing , advanced materials , logistics and ancillary sectors. Besides it would enhance policy attractiveness , strengthen investor confidence and build a resilient semiconductor ecosystem in Odisha , the Chief Secretary said, (BM)