New semi-conductor policy has place for only 2-3 fabrication units

BL reports

The Government has decided to allow only two or three companies to set up fabrication units in India with incentives specified under the semi-conductor policy.

However, it will permit ten companies to take benefit of the fiscal measures for manufacturing devices that include Liquid Crystal Displays (LCD), solar cells and storage devices, which essentially form part of the eco-system.

An Appraisal Committee comprising high-level officials from the Department of Information Technology and the Ministry of Commerce and Finance will decide on which companies will be given the incentives.

Notifying the semi-conductor policy, which was cleared by the Union Cabinet in January, Mr Dayanidhi Maran, Union Minister for Communication, Information and Technology, said, "We expect to attract investment of Rs 24,000 crore in this sector in the next three years. We are sure that many big players are willing to invest. Since we have the capacity for 2-3 fabrication units, we will have the choice to pick the best."

Can't say i was impressed with semi-conductor policy in first place, and so this is not to complain why restrict these incentives only to three players. It's more to do with the underlying assumptions. Just look at the last line. It's the same attitude that made our government to take it upon itself to decide how much should be produced and what. Todays ministers might talk as if they are for free markets - but their words speak louder ;-)