BHUBANESWAR – In a bid to position itself as a major semiconductor hub, the Odisha government has unveiled a special incentive package worth up to ₹600 crore for companies setting up semiconductor parks in the state. The announcement comes soon after the Centre approved two chip manufacturing projects worth ₹4,009 crore for Odisha.
Key Incentives for Developers
Under the amended Semiconductor Manufacturing and Fabless Policy, developers establishing semiconductor industrial parks with world-class infrastructure will be eligible for a 25% capital expenditure subsidy, capped at ₹400 crore. This includes funding for core and common infrastructure, as well as shared facility centres.
Additional benefits include:
- Land at a 25% discount on prevailing rates under the Industrial Policy Resolution (IPR).
- Interest subsidy of 5% per annum on term loans for seven years, up to ₹50 crore annually.
- 100% reimbursement of net SGST paid.
- Full exemption of stamp duty on land transactions (up to three per developer per unit).
- 100% reimbursement of land conversion fees.
- Incentives on power and water supply.
Support for Chip Fabrication and Design Units
For semiconductor and display fabrication projects, the state will provide fiscal support covering 30% of the project cost — increased to 50% for the first three units approved by the Ministry of Electronics and Information Technology (MeitY).
Facilities for semiconductor assembly, testing, marking, packaging (ATMP), outsourced assembly and testing (OSAT), silicon photonics, and sensors will also receive 30% support, with the first five units eligible for 50%. The policy further offers ₹7 crore relocation support for the first 10 fabless design units and eligible engineering professionals.
R&D Grants and Long-Term Vision
Mega semiconductor units will be eligible for R&D grants of up to ₹2 crore per company annually for 10 years, tied to specific technology outcomes. Other units can claim up to ₹5 crore over five years to cover capital and operational R&D costs.
By offering one of the largest state-level subsidies in India, Odisha aims to accelerate investment in advanced semiconductor manufacturing and allied industries, strengthening its position in the country’s high-tech ecosystem.
Image Source: Google | Image Credit: Respective Owner
