The Hindu Business Line : AP clears incentive package for SemIndia

Hyderabad April 28 Following up on the Central Government's announcement of the semiconductor policy, the Andhra Pradesh Government on Saturday cleared a package of incentives, including fiscal and land related, for SemIndia, the anchor unit of the Fab City project near Hyderabad.

The State Government order outlines various benefits, including land lease of 100 acres of the total 1,200 acres earmarked for a period of 66 years, power supply at Rs 1.85 per unit for 15 years, five million gallons per day of water at Rs 15 per kilo-litre for 15 years.

This is complimented by a 100 per cent reimbursement of VAT paid by SemIndia on sales of products for eight years from the date of commercial production at the rate of 50 per cent for seven years, reimbursement of Central Sales Tax, and exemption from Octroi, turnover and entry tax for 15 years.

In addition, this will enjoy training grants to cover costs at Rs 15,000 each, not exceeding 15,000 employees related to the SemIndia project. Other benefits would also accrue as per Special Economic Zone benefits.

Obligations

However, the Government has also laid a few obligation on the SemIndia promoters headed by Dr Vinod K. Agarwal, its Chairman and CEO, including the mandate specifying investments. It called upon them to invest $75 million in assembly, test, mark pack (ATMP) plant with an employment of 2,000, within 18 months of land allotment, $750 million in semiconductor chip manufacturing with 1,000 employees within three years, and $2.25 billion in Phase III for advanced semiconductor plant with 5,000 jobs over 5-7 years.

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AP clears incentive package for SemIndia