Madhya Pradesh Announces Free Land, Buildings for Chipmakers

Electronic chip makers will get free land and buildings for setting up plants worth about Rs. 3,000 crores in Madhya Pradesh, a senior state government official said in Bengaluru.

"Happy to announce that Madhya Pradesh government has approved Analog Semiconductor Fab Policy. Minimum investment under this policy has to be about Rs. 3,000 crores. State government will provide free land and reimburse cost of shell (plant building) as well," MP Science and Technology Secretary Hari Ranjan Rao told PTI.

Madhya Pradesh is the first state to come up with an electronic chip plant specific policy.

The secretary was in Bengaluru to attend the IESA Vision Summit.

The analog semiconductors are used in all kind of electronic products to connect various components inside them, such as connecting touchscreens with circuits, monitoring mobile phone battery power etc.

Rao said that government has identified 4-5 different locations with 200 acres of contiguous land for establishing semiconductor clusters in the state.

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The land will be given for 50 years and will be extended further based on business case.

"Besides this we will provide dedicated power to plants through two grids round the clock and water at doorstep of the plant. It will be provided at internationally competitive tariff for 10 years," Rao said.

MP is the only state that has set up green-field electronics manufacturing clusters in Bhopal and Jabalpur.

The state government will build four lane road to connect electronic chip or semiconductor plants with the airport.

"We are also in in talks with commerce ministry at centre for setting up free trade area near airports so that there is hassle free movement of logistics," Rao said.

Indian Electronics and Semiconductor Association Chairman Ashok Chandak said that analog semiconductors play a vital role in making IoT (Internet of Things) products that can be controlled using the Internet.

"Policy contours were discussed with MP government about three months back and today it is in place. We are happy to see MP government taking fast decision when it comes to investment," Chandak said.

Rao said that under the policy, state government will also work out a mechanism to reimburse chipmakers some cost of experts that they will bring from abroad to operate the plants and at the same time make arrangements with the company to develop skilled workforce in the state.