Bhubaneswar: To attract investments across the semiconductor value chain, the State Cabinet today decided to modify its Odisha Semiconductor Manufacturing and Fabless Policy-2023.
This policy aims to foster a thriving ecosystem of 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, said Chief Secretary Pradeep Kumar Jena.
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, he said.
Under the revised provisions, mega projects exceeding Rs 500 crore in investment can now effortlessly access an upper limit of Rs 25 crore per annum for a span of 7 years towards interest subsidy, as the previous 5 per cent 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. As for the Production Linked Incentive (PLI), all units are now eligible to apply for the incentive for a continuous period of 5 years within the T-year period following the commencement of production, he said.
In terms of skill development, eligible units will receive reimbursement of up to Rs 2 crore per annum for 5 years to facilitate the training of their employees engaged in core operations, Shri Jena added.
