SEZ Rules Eased to Boost Semiconductor Manufacturing

11 Jun 2025 CW Team

Under the revised norms, the minimum contiguous land required for establishing an SEZ exclusively for semiconductor or electronic component manufacturing has been reduced from 50 hectares to just 10 hectares. This major amendment to Rule 5 of the SEZ Rules, 2006, is expected to lower entry barriers for companies in these capital-intensive sectors.

Further, Rule 18 has been amended to permit SEZ units in these categories to supply products within India after paying the applicable duties—marking a shift from the earlier export-only restriction. Additionally, Rule 7 has been modified to allow SEZ land to be mortgaged or leased to government bodies, relaxing the requirement for it to be completely encumbrance-free.

These regulatory relaxations have already led to fresh approvals. The Ministry of Commerce and Industry announced that two new SEZ proposals have been cleared, involving a combined investment of Rs 13.1 billion. Micron Semiconductor Technology India will set up an SEZ unit in Sanand, Gujarat, with a planned investment of Rs 13 billion. Aequs Group’s Hubballi Durable Goods Cluster Private Ltd will establish its facility in Dharwad, Karnataka, with an investment of Rs 100 million.

The ministry emphasised that these initiatives will enhance India’s capabilities in semiconductor manufacturing, stimulate ecosystem development, and create highly skilled jobs. “Given the capital intensity, import dependence, and long gestation periods in these sectors, the regulatory changes are aimed at promoting pioneering investments,” the ministry said.

The reforms align with India's broader push to emerge as a global electronics and semiconductor manufacturing hub and are expected to generate strong investor interest moving forward.

The Indian government has announced key amendments to Special Economic Zone (SEZ) rules to encourage high-tech manufacturing in semiconductors and electronic components. The changes, notified by the Department of Commerce on 3 June 2025, aim to make SEZ development more flexible and investment-friendly by reducing minimum land requirements and allowing domestic sales.Under the revised norms, the minimum contiguous land required for establishing an SEZ exclusively for semiconductor or electronic component manufacturing has been reduced from 50 hectares to just 10 hectares. This major amendment to Rule 5 of the SEZ Rules, 2006, is expected to lower entry barriers for companies in these capital-intensive sectors.Further, Rule 18 has been amended to permit SEZ units in these categories to supply products within India after paying the applicable duties—marking a shift from the earlier export-only restriction. Additionally, Rule 7 has been modified to allow SEZ land to be mortgaged or leased to government bodies, relaxing the requirement for it to be completely encumbrance-free.These regulatory relaxations have already led to fresh approvals. The Ministry of Commerce and Industry announced that two new SEZ proposals have been cleared, involving a combined investment of Rs 13.1 billion. Micron Semiconductor Technology India will set up an SEZ unit in Sanand, Gujarat, with a planned investment of Rs 13 billion. Aequs Group’s Hubballi Durable Goods Cluster Private Ltd will establish its facility in Dharwad, Karnataka, with an investment of Rs 100 million.The ministry emphasised that these initiatives will enhance India’s capabilities in semiconductor manufacturing, stimulate ecosystem development, and create highly skilled jobs. “Given the capital intensity, import dependence, and long gestation periods in these sectors, the regulatory changes are aimed at promoting pioneering investments,” the ministry said.The reforms align with India's broader push to emerge as a global electronics and semiconductor manufacturing hub and are expected to generate strong investor interest moving forward.

Infrastructure Urban

06 Apr 2026

CFI Appoints New National Council for FY27 and FY28

The Construction Federation of India (CFI) has announced its newly elected National Council and office bearers for a two-year term covering FY27 and FY28. M. V. Satish, Advisor to CMD and Lead Ambassador for Middle East, L&T, has been elected President; Priti Patel, Chief Strategy & Growth Officer, Tata Projects, has been appointed Vice President; and Ajit Bhate, Managing Director, Precast India Infrastructures, has taken charge as Treasurer.The newly formed National Council brings together senior leaders from major EPC and infrastructure companies, reflecting CFI’s continued focus o..

Infrastructure Urban

06 Apr 2026

India REIT Market Gains Momentum with Strong Returns

India’s Real Estate Investment Trust (REIT) market is witnessing strong growth, emerging as a competitive investment avenue both domestically and across Asia. According to a recent ANAROCK report released at EXCELERATE 2026 by NAREDCO Maharashtra NextGen, the sector is evolving into a mature asset class driven by solid fundamentals, regulatory backing and rising investor confidence.The introduction of Small and Medium REITs (SM REITs) in 2025 has further widened access through fractional ownership, unlocking a potential monetisation opportunity of Rs 670–710 billion. Indian REITs have deli..

Infrastructure Energy

06 Apr 2026

G R Infraprojects Secures Rs 4,130 Million BESS Contract From NTPC

G R Infraprojects said it has secured a contract from NTPC to supply and implement a battery energy storage system (BESS) valued at Rs 4,130 million (mn). The company reported the order was awarded as part of NTPC's ongoing efforts to enhance grid flexibility and energy storage capacity. The contract represents a notable addition to the firm's project pipeline and underscores demand for utility scale storage solutions. The award is expected to strengthen G R Infraprojects' presence in the energy infrastructure sector and to contribute to the firm's order book and future revenues, subject to st..