BHUBANESWAR: With Odisha aspiring to be a significant player in the country’s semiconductor landscape, the state government has released detailed operational guidelines for facilitating investments and disbursing capital investment subsidies under its ‘Semiconductor Manufacturing and Fabless Policy’.
The guidelines will cover projects related to compound semiconductors, silicon photonics, sensor fab, and semiconductor assembly, testing, marking and packaging (ATMP) and outsourced semiconductor assembly and test (OSAT) facilities.
Sources said, investment proposals for approval under the policy will be accepted till December 31, 2030. All units involved in semiconductor manufacturing and fabless design are eligible for benefits apart from the new units. Projects such as compound semiconductor fabs, silicon photonics, discrete semiconductor fabs for manufacturing high frequency/high power optoelectronics devices are eligible for fiscal support.
As per the new guideline, eligibility criteria remain uniform for new and expanding units. If a single application includes both fab and ATMP components, the higher of the two minimum investment thresholds will apply. The policy allows for support to be extended to consortiums or joint ventures, provided at least one group company meets the eligibility conditions. However, a project cannot claim fiscal support for the same incentive under any other state scheme.
Odisha Computer Application Centre (OCAC) has been designated as the nodal agency. It will be responsible for verifying eligibility, conducting technical and financial assessments through the Odisha Technical and Financial Assessment Group (OTFAG), and overseeing fund disbursement. It will also empanel consultants and experts for project evaluations in areas such as compound semiconductors, silicon photonics and packaging. The policy also outlines the components of eligible capital expenditure, which include building infrastructure, plant and machinery, associated utilities, R&D equipment, and technology transfer costs. Expenditure on land, however, will not be considered.
“Subsidy disbursement will follow a pari-passu model. The state subsidy will be released after the applicant mobilises its share of investment and deposits funds into a no-lien account, which will be used exclusively for authorised project expenditure,” said an official of the IT department.
Units receiving fiscal support under the policy will have to remain in commercial production for a period of at least three years from the date of commencement of production. An apex committee led by the chief secretary will oversee the implementation of the policy and monitor implementation, grievance redressal and approval of incentives on a quarterly basis.