Micron-Aequs investments approved, says Ministry
To boost high-tech manufacturing in the country, spur growth of semiconductor manufacturing ecosystem and create high skilled jobs in the country, the government has introduced pioneering reforms in the Special Economic Zones (SEZ) rules, addressing the specialized needs of high-value added and export-oriented industries https://www.commerce.gov.in/.
Since manufacturing in these sectors is highly capital intensive, import dependent and involve longer gestation periods before turning profitable, rule amendments have been carried out to promote pioneering investments and boost manufacturing in these high technology sectors, the Ministry of Commerce and Industry said on 9 June.
The approved investments attracted to date are: Micron to establish its SEZ facility in Sanand, Gujarat, over an area of 37.64 ha with an estimated investment of Rs.13,000 crores, and Aequs to set up its SEZ in Dharwad, Karnataka, over an area of 11.55 ha to manufacture electronics components with an estimated investment of Rs.100 crores https://www.investindia.gov.in/.
After amendments in Rule 5 of SEZ Rules, 2006, an SEZ set up exclusively for the manufacturing of semiconductors or electronic components will require a minimum contiguous land area of only 10 hectares, reduced from the earlier requirement of 50 hectares.
Further, amendment to Rule 7 of SEZ Rules, 2006, allows the Board of Approval for SEZs to relax the condition requiring SEZ land to be encumbrance-free in cases where it is mortgaged or leased to the Central or State Government or their authorized agencies https://www.nseindia.com/.
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 https://fieo.org/.
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 https://www.bseindia.com/.
These amendments have been notified by the Department of Commerce on 3 June 2025. Fiinews.com
