Monday, February 17, 2014: In a recent development, South Korean multinational giants, Samsung and LG are mulling to set up semiconductor units here in India, after the government gave a go-ahead to build two such units. The move comes in response to the Indian government’s request that these companies which manufacture semiconductors, start this operation here as well.
“The companies (LG and Samsung) are considering the Indian request. The problem is Indian style of slow processes,” Republic of Korea’s Ambassador to India Joon-gyu Lee was quoted as saying. India does not have a semiconductor plant yet, therefore the move is likely to boost the manufacture of electronic chips in India. Meanwhile, LG and Samsung were not available for comments.
In a big boost to the ESDM sector that will eventually see India take a step forward in taking full control over its electronics destiny, the Cabinet earlier cleared the setting up of two semiconductor units entailing investments of Rs 515,500 million. Consortiums led by Jaiprakash Associates and Hindustan Semiconductor have proposed to set up the units.
The Department of Electronics and IT had earlier invited bids for the plants detailing the benefits that the companies would get following an in-principle approval by the Cabinet in September, 2013. The consortium led by JP Associates has outlay of about Rs 263,000 million, whereas the one led by Hindustan Semiconductor Manufacturing Corporation (HSMC) has outlay of Rs 252,500 million.
All the benefits under the National Policy on Electronics will be provided to the companies. Under the same, they will receive a Modified Special Incentive Package which allows up to Rs 100000 million in benefits under the 12th Five Year Plan ending 2017. Meanwhile, under section 35 AD of I-T Act their capital investment amount will be set off against profit. The projects will also be liable for interest free loan of about Rs 51,240 million for a period of 10 years.
