Bhubaneswar, Feb 22: The Odisha Cabinet on Thursday approved a proposal for amendment of the Odisha Semiconductor Manufacturing and Fabless Policy 2023.
In order to attract investors for setting up of manufacturing units of semiconductors, electronic chips and fabless design of electronics products in the state, the cabinet approved the proposal in the Odisha Cabinet today.
To establish Odisha as a nucleus for semiconductor design and manufacturing, the Government of Odisha had earlier introduced the Semiconductor Manufacturing and Fabless Policy-2023 in September 2021.
This policy aims to foster a thriving ecosystem by establishing a startup hub for semiconductor R&D, design and manufacturing firms and also, nurturing the nation’s pool of semiconductor design talent.
However, the semiconductor industry in Odisha is still in its infancy. Recognizing the dynamic nature of the competitive landscape and the evolving demands of potential investors, certain amendments to the policy have been deemed necessary. These amendments are designed to bolster provisions for fiscal support under interest subvention, Production Linked Incentives (PLI), and investments in R&D and skill development training.
Under the revised provisions, mega projects exceeding INR 500 Cr in investment can now effortlessly access an upper limit of INR 25 Cr per annum for 7 years towards interest subsidy, as the previous 5% capping for interest subvention has been eliminated.
Additionally, such mega projects are entitled to reimbursement of R&D expenditures up to INR 2 Cr annually for 10 years.
