Govt indecisive on semiconductor policy
Amid difference between Finance and Communication ministries over the formation of a semiconductor policy, the government on Wednesday held a meeting of senior officials for finalising the policy, but no decision was taken on the issue.
By PTI |
NEW DELHI: Amid difference between Finance and Communication ministries over the formation of a semiconductor policy, the government on Wednesday held a meeting of senior officials for finalising the policy, but no decision was taken on the issue.
When contacted, senior Finance Ministry officials confirmed that the meeting was held, but stressed that more such meetings will have to be called to finalise the policy.
Finance Secretary Adharsh Kishore, Revenue Secretary K M Chandrasekher and IT Secretary Jainder Singh were present at the meeting.
The policy is much-awaited as several industries are yet to firm up plans to invest in the country for semiconductor.
The industry is keen on getting fiscal incentives on the lines of those offered in countries like China, Taiwan and Israel.
The IT department had pitched for a host of incentives for the chip makers, including equity participation of 26 per cent, interest-free loan of up to Rs 400 crore for five years, ten year interest subsidy and income tax holiday. Tax credit of up to 30 per cent of investment value-spread over three years--and sops at par with SEZs were also demanded.
The proposed sops are estimated to cost Rs 50,000 crore to the Government exchequer in next 15 years.
The policy, if cleared at subsequent meetings, would pave the way for the Fab City project in Hyderabad, supposed to be a launching pad for the semiconductor industry in India.
Finance Minister P Chidambaram had said in the Budget that the vehicles of viability gap funding and India Infrastructure Finance Company would be used for providing equity participation in new projects relating to manufacturing semiconductors.
When contacted, senior Finance Ministry officials confirmed that the meeting was held, but stressed that more such meetings will have to be called to finalise the policy.
Finance Secretary Adharsh Kishore, Revenue Secretary K M Chandrasekher and IT Secretary Jainder Singh were present at the meeting.
The policy is much-awaited as several industries are yet to firm up plans to invest in the country for semiconductor.
The industry is keen on getting fiscal incentives on the lines of those offered in countries like China, Taiwan and Israel.
The IT department had pitched for a host of incentives for the chip makers, including equity participation of 26 per cent, interest-free loan of up to Rs 400 crore for five years, ten year interest subsidy and income tax holiday. Tax credit of up to 30 per cent of investment value-spread over three years--and sops at par with SEZs were also demanded.
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The proposed sops are estimated to cost Rs 50,000 crore to the Government exchequer in next 15 years.
The policy, if cleared at subsequent meetings, would pave the way for the Fab City project in Hyderabad, supposed to be a launching pad for the semiconductor industry in India.
Finance Minister P Chidambaram had said in the Budget that the vehicles of viability gap funding and India Infrastructure Finance Company would be used for providing equity participation in new projects relating to manufacturing semiconductors.
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