Government of India Notifies SEZ Reforms to Boost Semiconductor and Electronics Component Manufacturing
#SEZ #SEZReforms #SemiconductorManufacturing #ElectronicsManufacturingThe minimum contiguous land needed to set up an SEZ exclusively for the manufacturing of semiconductors or electronic components has been reduced to just 10 hectares.
June 2025 : The government has introduced pioneering reforms in the Special Economic Zones (SEZ) rules to address the specialized needs of semiconductor and electronics component manufacturing sectors.
After amendments in Rule 5 of SEZ Rules, 2006, the minimum contiguous land needed to set up an SEZ exclusively for the manufacturing of semiconductors or electronic components has been reduced to just 10 hectares, down from the previous 50 hectares.
The Board of Approval for SEZs can now relax a key condition. This change, an amendment to Rule 7 of SEZ Rules, 2006, addresses encumbrance-free land. It allows for exceptions when SEZ land is mortgaged or leased to central or state governments or their authorized agencies.
The amended Rule 53 will allow the value of goods received and supplied on a free-of-cost basis to be included in Net Foreign Exchange (NFE) calculations and assessed using applicable customs valuation rules.
Moreover, amendments have been made in Rule 18 of the SEZ Rules to allow SEZ units in semiconductor as well as electronics component manufacturing sector to also supply domestically into the Domestic Tariff area as well after payment of applicable duties.
Subsequently, the Board of Approval for SEZs has accorded approval to the proposals received from Micron Semiconductor Technology India Pvt Ltd (MSTI) and Hubballi Durable Goods Cluster Private Ltd (Aequs Group) for setting up of SEZs for manufacturing of semiconductors and electronic components respectively.
Micron will establish its SEZ facility in Sanand, Gujarat over an area of 37.64 Ha with an estimated investment of INR ₹13,000 crores. Similarly, Aequs will establish its SEZ in Dharwad, Karnataka over an area of 11.55 Ha to manufacture electronics components with an estimated investment of INR ₹100 crores.
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