The Special Incentive Package Scheme or SIPS, notified last year by the Indian Government to encourage investments in semiconductor fabrication and other micro and nano technology manufacturing industries, has attracted nearly a dozen proposals together worth Rs.80,000 crores that include corporate giants like Reliance Industries, Videocon and Tata BP Solar, the media reported.
The Government has so far received 11 proposals to avail incentives under SIPS. While Reliance Industries is planning a semiconductor wafer fab with an investment of Rs.18,521 crores, Videocon Industries is setting up an LCD fab at an investment of Rs.8,000 crores.
The other nine proposals relate to the fast-growing solar photovoltaic space. These include Solar Semiconductor (Rs.11,821 crores), Reliance Industries (Rs.11,631 crores), Signet Solar (Rs.9,672 crores), Moser Baer PV Technologies (Rs.6,000 crores), Titan Energy Systems (Rs.5,880 crores), KSK Energy Ventures (Rs.3,211 crores), TF Solar Power (Rs.2,348 crores), Tata BP Solar India (Rs.1,693 crores) and Phoenix Solar (Rs.1,200 crores).
Considering mammoth response, the Government is in the process of setting up an appraisal committee to evaluate these projects. The appraisal committee will be headed by the Additional Secretary, Department of IT, and will give its recommendations to the Government on the proposals.
As a first step, the Government is setting up an expert committee for technical evaluation of projects to assist the appraisal committee. The committee is likely to hold its first meeting by August-end or early-September. According to senior official, the technical committee will consist of 4 to 5 experts in latest technologies for solar photovoltaic and semiconductor wafer fabrication.
Similarly, a Project Management Unit or PMU will focus on the financial appraisal and look at issues such as financial closure of the project, debt, equity structure and funding pattern, the report stated.
Sources close to the development reportedly stated that the Government is in the process of roping in a global consultancy firm to assist the PMU. The technical and financial groups are expected to be in place in the next 7 to10 days.
Under SIPS, the industries that are setting up units in the Special Economic Zones will get an incentive of 20% of capital expenditure for the first ten years and 25% for the units that are being set up on non-SEZ units. Besides, a unit can claim incentives in the form of capital subsidy or equity participation. The non-SEZ units would be exempted from the countervailing duty.
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