Combined investments now stand at Rs 77,000 cr

The outlays

Tata BP Solar proposes to invest close to Rs 1,700 crore, with unit in Bangalore.

Solar Semiconductors’ proposed investment is pegged at Rs 11,000 crore.

Moumita Bakshi Chatterjee

New Delhi, May 28 The Government has received two more applications, including one from Tata BP Solar, for incentives under the policy for semiconductor fabs and other micro and nano technology manufacturing industries.

According to sources in the Department of IT (DIT), Tata BP Solar proposes to invest close to Rs 1,700 crore, with unit in Bangalore. The investment would be for solar PV cells and modules, sources pointed out.

“The other applicant is Solar Semiconductors whose proposed investment is pegged at Rs 11,000 crore. This would involve solar PV modules and also Thin Film modules,” sources added.

With this, the combined investment commitment by various applicants under the Special Incentive Package Scheme (SIPS) is estimated to be close to Rs 77,000 crore.

Early last month, Government announced that the scheme had attracted seven proposals (including industry majors such as Reliance Industries Ltd) with a cumulative investment of the order of Rs 65,000 crore.

Mukesh Ambani-promoted Reliance Industries Ltd submitted two proposals worth over Rs 30,000 crore for establishing a semiconductor wafer fabrication plant and solar PV module unit in the country.

Other applicants included Videocon Industries, Moser Baer PV Technologies, Titan Energy System, KSK Energy Ventures Pvt Ltd and Signet Solar Inc.

Subsequently, Government also received an application from Phoenix Solar India for setting-up about Rs 1,200-crore solar PV cell and module project in the country.

The proposals under SIPS cover manufacture of wide variety of items like Polysilicon, single/multi-crystalline ingots, wafers, solar cells, solar photovoltaic modules (SPV) liquid crystal display (LCD), integrated circuits-advanced logic, memory, embedded system on chip including assembly, test, mark and packaging facility for semiconductor devices.

Under SIPS, the Centre would provide incentive of 20 per cent capital expenditure during the first 10 years for the units in SEZs and 25 per cent of the capital expenditure in non-SEZ units.

Any unit can claim incentives in the form of capital subsidy or equity participation.

(This article was published in the Business Line print edition dated May 29, 2008)
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