TelecomLive April 2024

Semiconductor Plants www.telecomlive.com 62 TelecomLIVE April 2024 policy, rebate will be provided onprevailing land rate taken. 1) 75 per cent subsidy on the first 200 acres of land on prevailing sector rates on purchasing land from state agencies. 2) On additional purchase of land for the unit or for the ancillary units 30 per cent subsidy shall be allowed. iv. Stamp Duty and Registra- tion fees: 100% exemption onpurchase/ lease of land v. Electricity Duty: 100 per cent exemption on electricity duty for a period of 10 years. vi. Dual power grid network shall be provided to the FAB units established in the state. The cost of one grid (lower of the two) shall be reimbursed by the state government while the cost of the other grid shall be borne by the investor. vii.T r a n s m i s s i o n a n d wheeling charges: Exemp- t i o n o f 50 p e r c e n t o n wheeling charges/ transmis- sion charges on intra-state purchase of power shall be provided for the period of 25 years from the date of com- missioning of the project. viii. Support for Skilling and Training: To create a skilled manpower pool ready for supporting semiconductor industry in chip design and manufacturing space, the state government will invite collaboration with educa- tional institutes and industry. The government will offer i n c e n t i v e s t o e n h a n c e semiconductor skills and talent development activities inUttar Pradesh, such as a. Faculty training/ techni- cal workshops/ aware- ness programs/ expert lectures up to Rs 60 Lakhs per year for 5 years; total of Rs 3 crores b. Internship support for B.Tech & M.Tech Gradu- ates up to 500 students per year for 5 years; Rs ¦ The app l i c an t ne ed s t o simultaneously apply under the UP-Semiconductor Policy 202 4 wh i l e s u bmi t t i n g proposals to India Semicon- ductorMission. Disbursement of Subsidy The capital incentive, which is in addition to the one provided by the Government of India, will only be disbursed once the Govern- ment of India releases its share to the investor and the disbursement will occur in Pari Passu mode. All the other fiscal incentives, apart from capital subsidy, rebate on land cost and Stamp Duty and Registration fees exemption provided in the policy, shall be eligible upon commencement of commercial production. Incentives Financial incentives offered under this policy are over and above the incentives given by the Government of India. However, incentives claimed by a unit from all the sources including the incentives given by the Govern- ment of India unless stated otherwise in the policy, shall not be more than 100 per cent of the eligible project cost. Fiscal Incentives i. Capital Subsidy: 50 per cent of the capital subsidy approved by GOI. This benefit will be disbursed in accor- dance wi th the bene f i t s provided by the Government of India on a Pari-Passumode. ii. Int eres t Subs i dy : An interest subsidy of 5 per cent per annum (on the rate of interest) to units with invest- ment up to Rs 200 crore on t he l oan ob t a i ned f r om Scheduled Banks/ Financial Institutions shall be reim- bursed up to maximum of Rs 1 crore per annum per unit for 7 years (Maximum Rs 7 crore per unit) iii. Land Rebate: For produc- tion units (given in #3 under Eligibility Criteria) of this proposed project under the Modified Scheme for establishing various semiconductor-related facilities, including Semiconduc- tor Fabs, Display Fabs, Com- pound Semiconductors/ Silicon Photonics Sensors Fab, Semicon- duc t o r As s emb l y , Te s t i ng , Marking, and Packaging (ATMP), OSAT facilities and similar government schemes be ing amended or proposed, as per notifications dated 04.10.2022, dated 04.10.2022, and dated 09.06.2023, will only be eligible for capital subsidy and not for any other benefits outlined in the policy. Approval Process: Proposals submitted for initia- tives encompassing Semiconduc- tor Fab, Display Fabrication, Compound Semiconductors, Silicon Photonics (SiPh), Sensors (including MEMS) Fab, Discrete S em i c o n d u c t o r s F a b , a n d S emi c o nd u c t o r A s s emb l y , Testing, Marking and Packaging (ATMP)/ Outsourced Semicon- ductor Assembly and Test (OSAT) Facility in India, which have been endorsed by the India Semicon- ductor Mission (ISM), Govern- ment of India and are being pursued within the state of Uttar Pradesh, will be sent for the State Cabinet approval. State Cabinet's approval will be conducted based on the recommendations pro- vided by the Empowered Com- mittee. ¦ Process of approval with GoUP: The proposals that have been endorsed by the India Semiconductor Mis- sion, Government of India, and seeking to setting up of Semiconductor facilities in Uttar Pradesh will be given LOC subject to the condition that incentive approved will not exceed 100 per cent of the total eligible project cost approved by ISM and the issued LoC will be effective only after approval of the proposal by the Government of India.