Updated January 7th, 2024 at 18:35 IST
TN government to offer additional incentives to semi-con projects
Tamil Nadu wants to attract anchor investments in semiconductor and advanced electronics space
- 2 min read
Semi-conductor space: The Tamil Nadu government on January 7 announced its plans to offer 50 percent additional financial incentives to semiconductor projects, which fall under the union government's $10 billion chip subsidy, as per media reports.
The move was announced during the two-day long Global Investors Meet taking place in Tamil Nadu.
As part of the Stalin government's key focus areas, Tamil Nadu wants to attract anchor investments in semiconductor and advanced electronics manufacturing, to enable a semiconductor design ecosystem in the state through incentives, funding and industry academia collaboration.
It is also looking to contribute 40 per cent in the country's electronics exports space by 2030, and rapidly create a skilled talent pool of 2,00,000 personnel in this sector by the same deadline, according to media reports.
Last year, Tamil Nadu contributed to 30 per cent of India's electronics exports.
Coming to the semiconductor front, when a project is selected by the Centre to set up its manufacturing in Tamil Nadu, the company will have access to incentives to train personnel, stamp duty, land and electricity concessions.
On the other hand, marquee research or design enterprises in the chips and electronics space will be eligible for an upto 30 percent payroll reimbursement for a period of three years, on the conditionality hiring the state's residents.
The payroll subsidy would be capped at Rs 20,000 per employee each month.
The Tamil Nadu government will further reimburse 50 percent of the expenditure incurred for the project, up to Rs 1 crore, during the investment period, for in-house R&D pertaining to geographical indications registration patents.
An interest subvention of 5 percent as a rebate in the rate of interest will also be provided for actual term loans taken to complete the project.
During the present two-day long Global Investors Meet in Tamil Nadu, it was mentioned that for an additional Rs 50 crore of investment, at least 35 jobs should be created.
The minimum investment and employment threshold must be met by the unit(s) within the standard investment period of four years.
Published January 7th, 2024 at 18:32 IST