New Delhi, Jan 11 (PTI) The much-awaited package for the semi-conductor industry aimed at attracting global chip giants such as Intel for setting up manufacturing units in the country today received in-principle approval of the Cabinet.
"Cabinet today gave its in-principle approval for giving special incentives to attract semi-conductor companies to set up fabs in hi-tech areas," Information and Broadcasting Minister P R Dasmunsi said after the meeting.
These special incentives will be available to companies till March 2010. The threshold limit, an incentive package and subsidy would be worked out later by Prime Minister's Office and the Cabinet Secretary, he added.
The special package will attract investment to set up semi-conductor fabrication facilities and other hi-tech industries in India to create an ecosystem for the development of electronics, IT hardware, micro and nanotechnology manufacturing facilities in India.
The announcement comes at a time when SemIndia has signed an MoU with global chip major AMD and Flextronics invloving a total investment of three billion dollars for a proposed semi-conductor fabrication facility in Hyderabad.
Finance Minister P Chidambaram in his last Budget speech made a statement with regards to a policy for attracting investment in semi-condictor fabrication.
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