Govt relaxes SEZ guidelines for semiconductor, electronics manufacturing

Representational file picture.
| Photograph Credit score: SUSHIL KUMAR VERMA

The federal government has notified a number of modifications to the laws for the organising of particular financial zones (SEZs) for the manufacturing of semiconductors or digital parts, it introduced on Monday (June 9, 2025). These revisions embody decreasing the minimal plot measurement for these items, and permitting such SEZ semiconductor items to additionally provide the remainder of India, other than solely exporting.

Following the notification of those modifications, the Ministry of Commerce and Trade stated, approval has been granted for the organising of two SEZ services in Gujarat and Karnataka with a complete funding of ₹13,100 crore. 

“Since manufacturing in these sectors is very capital intensive, import dependent and entails longer gestation durations earlier than turning worthwhile, rule amendments have been carried out to advertise pioneering investments and enhance manufacturing in these excessive know-how sectors,” the Ministry of Commerce and Trade stated in a launch.

The modification to Rule 5 of the SEZ Guidelines, 2006, has meant that an SEZ arrange solely for the manufacturing of semiconductors or digital parts will now want a minimal contiguous land space of 10 hectares, down from the sooner requirement of fifty hectares. 

The modification to Rule 18 of the SEZ Guidelines additional permits SEZ items in semiconductor in addition to electronics part manufacturing sectors to additionally provide domestically to the remainder of India after the fee of relevant duties. Conventionally, SEZs have been export-oriented.

Additional, modification to Rule 7 of SEZ Guidelines, 2006, permits the Board of Approval for SEZs to loosen up the situation requiring SEZ land to be encumbrance-free in instances the place it’s mortgaged or leased to the Central or State Authorities or their approved businesses.

These amendments had been notified by the Division of Commerce on June 3, 2025. Following this, the Board of Approval for SEZs accepted the proposals by Micron Semiconductor Expertise India and Hubballi Sturdy Items Cluster Personal Ltd (a part of the Aequs Group) for organising SEZs for the manufacture of semiconductors and digital parts respectively.

Micron will set up its SEZ facility in Sanand, Gujarat with an estimated funding of ₹13,000 crore, whereas Aequs will set up its SEZ in Dharwad, Karnataka, with an estimated funding of ₹100 crore.

“The amendments will enhance high-tech manufacturing within the nation, spur development of the semiconductor manufacturing ecosystem and create excessive expert jobs within the nation,” the discharge stated.