The Hindu : Business : Reliance Industries plans semiconductor facility

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Reliance Industries plans semiconductor facility

Special Correspondent

Two units will involve an investment of Rs. 30,000 crore

Location yet to be decided
Seeks Govt. subsidy of Rs. 5,721 crore

NEW DELHI: Seeking to make a foray into the technology-based sector, Mukesh Ambani owned Reliance Industries Ltd. (RIL) has submitted a proposal the Union Government for setting up two manufacturing facilities under the Government’s scheme to promote semiconductor technology with an investment of Rs. 30,000 crore.

According to an official statement here, till now seven investment proposals totalling Rs. 65,000 crore have been received from six companies. Besides RIL , Videocon Industries, Moser Baer PV Technologies, Titan Energy System, KSK Energy Ventures Pvt. Ltd. and Signet Solar Inc have submitted their plans to the Department of Information and Technology (DIT).

It said the proposals received are for manufacture of a wide variety of items such as polysilicon, single/multi-crystalline ingots, wafers, solar cells, solar photovoltaic modules (SPV) liquid crystal display (LCD), integrated circuits-advanced logic/memory/embedded system on chip including assembly, test, mar and packaging facility for semiconductor devices. Under the special incentive package scheme, the Union Government has to provide incentive of 20 per cent capital expenditure during the first ten years for the units in special economic zones (SEZs) and 25 per cent of the capital expenditure in non-SEZ units.

RIL is still undecided on the location, but it is likely to be in Navi Mumbai, Hyderabad, Mysore or Haryana. “RIL would decide the final location of the plant after negotiations for incentives from the respective State governments,” the statement added.

It has sought subsidy to the tune of Rs. 5,720.70 crore for its two proposed units. It is envisaged that about 4,000 people would be employed for the fabrication and ATMP units.

The second Reliance plant is likely to come up at a cost of Rs. 11,631 crore at Jamnagar in Gujarat. It will manufacture polysilicon, single crystal/multi crystalline ingots, solar grade wafers, SPV modules with a capacity of one GW.

The plant is expected to create over 11,000 direct skilled, semiskilled and unskilled jobs.

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