Close to a month after the incentives for the semiconductor industry were announced, the fine print of the semiconductor policy is expected in a week. “We are finalising the finer details of the policy and the policy will be out in a couple of days,” said a senior IT ministry official.

While the macro details of the incentive package were announced on February 22, the finer detailing of the policy, including the combination of equity and interest subsidy in the incentive package, will be announced this week. “The semiconductor companies interested in investing in India have been waiting for the policy and some foreign countries have also shown interest in the details of the policy,” said India Semiconductor Association president Poornima Chenoy. It has also been learnt that a committee for evaluating the project proposals will be set up after the package is announced.

The committee is likely to comprise officials from across the board, including officials from the finance ministry, the IT ministry and industry experts. The policy will define the criteria for evaluating the projects.

The government on February 22 announced that 25% direct subsidy of the capital expenditure can be availed of by semicondictor manufacturers located outside SEZs with no countervailing duty on capital goods and 20% subsidy can be availed of by those located within SEZs. While it has been indicated that the subsidy will be in a combination of tax concessions, interest subsidy and interest-free loans, the policy will clearly define the package.

For semiconductor manufacturing, the minimum investment for availing the incentives has been pegged at Rs 2500 crore, while the threshold for other products like liquid crystal displays (LCDs), organic emitting diodes, plasma display panels, storage devices, photovoltaics and other advanced micro and nano technology products and assembly and testing is Rs 1,000 crore.

-TOI