semiconductor policy

The government expects to attract an investment of around $6-10 billion (approx. Rs 24,000-44,000 crore) by luring two-three fabrication units with at an investment of $2-3 billion each by 2010 now that it has notified (given formal consent) to the semiconductor policy it had announced on February 22.the government had announced a host of incentives in the semiconductor policy that include bearing 20% of the capital expenditure during the first 10 years if a unit is located inside special economic zones (SEZ) and 25% in case of other units. The countervailing duty (CVD) on capital goods too would be exempted in case of units outside the SEZs. The policy further entails that for semiconductor manufacturing (wafer fabs) plants, the investment would be Rs 2,500 crore and Rs 1,000 crore for manufacturing of other productsthat include bearing 20% of the capital expenditure during the first 10 years if a unit is located inside special economic zones (SEZ) and 25% in case of other units. The countervailing duty (CVD) on capital goods too would be exempted in case of units outside the SEZs. The policy further entails that for semiconductor manufacturing (wafer fabs) plants, the investment would be Rs 2,500 crore and Rs 1,000 crore for manufacturing of other products