New Delhi— Micron Semiconductor Technology India Pvt Ltd (MSTI) will invest ₹13,000 crore to establish a Special Economic Zone (SEZ) facility in Sanand, Gujarat, spanning 37.64 hectares. The facility will focus on semiconductor and electronic component manufacturing, the government announced Monday.
In a parallel development, the Hubballi Durable Goods Cluster, backed by Aequs Group, will set up a new SEZ in Dharwad, Karnataka, over 11.55 hectares with an investment of ₹100 crore. This unit will also specialize in electronics components.
These investments follow sweeping reforms by the Commerce Ministry to modernize SEZ regulations and attract high-tech manufacturing. Recognizing the capital-intensive nature and long gestation periods of semiconductor production, the government has amended key provisions of the SEZ Rules, 2006.
The minimum land requirement for SEZs dedicated to semiconductor and electronic component manufacturing has been reduced from 50 hectares to 10 hectares. The revised rules also permit SEZ land to be mortgaged or leased to central or state government bodies, removing earlier encumbrance restrictions. Additionally, changes to the valuation rules will allow goods received or supplied on a free-of-cost basis to be included in Net Foreign Exchange calculations, using customs valuation standards.
Further, SEZ units in these sectors will now be allowed to sell products within the Domestic Tariff Area after paying applicable duties—an important shift aimed at boosting domestic market participation.
The Commerce Ministry said the reforms will help develop a robust semiconductor ecosystem in India, encourage high-tech investments, and generate highly skilled employment. Following these regulatory changes, the Board of Approval has granted formal approval to the proposals from Micron and Aequs. (Source: IANS)
