Allies have started cornering Modi from Gujarat

Ahmedabad, June 18, 2024 (Gujarati to Gooale translation)

Union Steel and Heavy Industries Minister and Janata Dal (Secular) leader HD Kumaraswamy had stirred up a controversy by pointing out the disproportionate subsidies given to US-based semiconductor companies.

Kumaraswamy said that US-based Micron Technology, which is going to set up its $2.5 billion unit in Gujarat, will pay Rs. 3.2 crore subsidy has been given.

Kumaraswamy, who returned to Bengaluru after taking charge as Union Cabinet Minister, said, the new manufacturing unit will create about 5,000 jobs. For this, we are giving them a subsidy of $2 billion.

The Gujarat government is giving 70 per cent of the total investment of the company.

First know what HD Kumaraswamy said. Kumaraswamy was addressing his party JDS workers in Bengaluru on June 14. During this, he raised the question whether the subsidy being given by the Gujarat government to the American microchip manufacturer Micron Technology is justified?

Kumaraswamy’s comments have again fueled the ongoing political debate over growing inequality in the country.

Accused of giving large-scale tax exemptions to corporates to promote investment.

The newly appointed Union Minister has further increased the opposition’s criticism of the Modi government’s fiscal policies.

Kumaraswamy said, “I asked the officials how justified it is to allocate such a large amount. On the contrary, there are small industries.”

What benefits have we given them, like how to protect the country’s wealth? As a minister, his focus will be on creating employment opportunities for the youth. I can also provide employment opportunities outside the state. You should be ready to move.

The minister’s independent comments are also a reflection of what kind of situation the coalition government may face at the Center, where allies have different views on policy issues.

BJP had its own majority in the last 10 years. Modi’s cabinet ministers have rarely expressed their personal views on policy matters. But now it is happening.

Kumaraswamy urged the Congress government in Karnataka to set aside their differences and “cooperate and contribute” to the state’s welfare.

He hit back, saying his words had been misinterpreted.

Vedanta-Foxconn’s Rs 1.54 lakh crore semiconductor project came to Gujarat instead of Maharashtra but did not last. Now it may be advertised to another company. Maybe Tata. The Gujarat government is keeping it a secret.

Plant in Sanand

Micron Technology will set up a plant in Sanand, Gujarat. The project will entail a total investment of Rs. 22,500 crore. 5,000 people could get direct employment. The government has given the project approval letter and land allotment to Kapany. The plant will be operational in 18 months. Applied Materials will invest $400 million to build an engineering center. Lam Research and other major semiconductor companies will train 60 thousand Indian engineers.

Micron said that it will invest $ 82.5 million in India. However, the investment will be in the chip testing and packaging sector, not in manufacturing. With the financial support of the Central Government of India and the State Government of Gujarat, this investment will increase to $ 2.75 billion.

Companies in Gujarat again sent their renewal plan to the government. Semiconductor Policy (2022-2027) was announced by the Government of Gujarat.

Industries benefit from the policy

On 27 June 2022, the Semiconductor Policy was announced in Gujarat to attract investment in the chip manufacturing sector. In which the opposition believes that industries will get relief like Rs 2 lakh crore.

1 – Capital assistance will be provided by the Government of India. Relief of Rs 76,000 crore will be given by the Government of India.

2- Additional assistance will be provided by the state government at the rate of 40 percent of the capital assistance.

3- Eligible projects set up in Dholera Semicon City in Dholera Sir will be given 75 percent subsidy on the first 200 acres of land purchase.

4-50 percent subsidy will be given on additional land.

5- Electricity tariff subsidy will be given at Rs 2 per unit.

6- Exemption from paying electricity charges.

7- Good quality water will be made available at Rs 12 per cubic meter for five years.

8- All approvals will be given from one place.

9- Stamp duty on lease, sale, transfer of land has been waived.

10- 2 lakh jobs will be given in 5 years.

Semiconductor Companies in India

Sankhya Labs Semiconductor Solutions, Bengaluru
ASM Technologies Stock Listed: Semiconductor Engineering, Bengaluru
Broadcom Inc. Semiconductor and Infrastructure Software Solutions, Bangalore
Chiplogic Technologies Semiconductor Design Services, Bangalore
CDIL Semiconductor Manufacturer, New Delhi
Moschip Semiconductor Technologies Fabless Semiconductor, Hyderabad
Infochips Semiconductor Design Services, Ahmedabad
TATA Elxsi AI, Machine Learning, NLP, Bengaluru
Semiconductor Technology Semi-conductor Laboratory R&D, Mohali
NXP Semiconductors Semiconductor Startup Incubation, Bangalore

Vedanta Group has projected revenue in 4 years from semiconductor manufacturing.

Vedanta to raise $300 million through debt. Semiconductor and display plants to be set up in India There was a plan to do this.

Anil Agarwal’s focus was on the semiconductor business, Vedanta Group was going to invest in chip manufacturing.