Cabinet approves 3 chip making units with investment of ₹1.26-lakh cr

The Union Cabinet convened on Thursday and granted approval for the establishment of three semiconductor units, marking a significant stride in India's technological infrastructure. The investment allocated for this venture amounts to a substantial ₹1.26-lakh crore. Among these units, two are slated for construction in Gujarat, while the third is earmarked for Assam. This decision augments India's existing semiconductor capabilities, with the anticipation of the first unit commencing supply by year's end.

Notably, the Tata Group will spearhead the establishment of two units, located in Dholera, Gujarat, and Morigaon, Assam, while CG Power will oversee the construction of a unit in Sanand, Gujarat. Telecom Minister Ashwini Vaishnaw, addressing reporters in a post-Cabinet press conference, revealed plans for ceremonial groundbreaking ceremonies, or "Bhommi poojans," for all three plants, which will kickstart construction within 100 days.

Vaishnaw emphasized the ambitious timeline set for the project, noting that while typical construction periods span 3-4 years, efforts will be made to expedite proceedings, particularly drawing from the expedited timeline achieved for the Micron Unit. The streamlined approach adopted for the Micron Unit provides a blueprint for the efficient execution of all three semiconductor plants.

HBL