Andhra Pradesh Greenlights Land Allotment for Pioneering Semiconductor Project
In a landmark decision for industrial development, the Andhra Pradesh government has formally approved the allocation of 30 acres of land at the highly concessional rate of just Rs 1 per acre. This strategic allotment is designated for Advanced System in Package Technologies Private Limited, which plans to establish a state-of-the-art outsourced semiconductor assembly and test (OSAT) facility in Tarluwada village, located within the Visakhapatnam district.
A Major Milestone with Substantial Investment
This project represents a significant milestone as the first semiconductor initiative in Andhra Pradesh to receive sanction under the prestigious India Semiconductor Mission (ISM). The total proposed investment is substantial, amounting to Rs 2,387.81 crore, which will be deployed across two distinct phases. The initial phase will see an investment of Rs 542.19 crore, followed by a more extensive second phase investment of Rs 1,845.61 crore. Collectively, this venture is projected to generate employment opportunities for approximately 1,000 individuals, providing a significant boost to the local economy.
Interestingly, Tarluwada village is also slated to host the proposed Google data centre project, positioning the area as a burgeoning hub for high-tech infrastructure.
Strategic Approval and Policy Backing
The council of ministers, during its meeting on February 24, granted approval for this proposal, specifically modifying the land allotment terms to the symbolic Rs 1 per acre rate. This decision was made as a special case, recognizing the project's status as the inaugural ISM-sanctioned undertaking for the state of Andhra Pradesh. The project has already obtained formal approval from the India Semiconductor Mission, which operates under the Union Ministry of Electronics and Information Technology, underscoring its national importance in fortifying India's semiconductor manufacturing ecosystem.
This development aligns with the state's proactive policy framework, notably the "Andhra Pradesh Semiconductor and Display Fab Policy (4.0), 2024–29," which was instituted to attract investments in the semiconductor sector. The state government has been engaged in sustained efforts to secure projects approved by the ISM.
Comprehensive Evaluation and Incentive Structure
The proposal from Advanced System in Package Technologies underwent a rigorous evaluation process. It was initially examined by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and subsequently presented before the concerned committees in January. Based on their recommendations, the proposal was considered by the state investment promotion committee on February 12 and later recommended to the state investment promotion board (SIPB). Following detailed deliberations, the SIPB's recommendations were placed before the council of ministers, which granted the final approval.
Accordingly, the government has sanctioned the extension of incentives worth up to 40 percent of the total project cost. These incentives will be disbursed on a pari passu basis, synchronized with the Union government's release of a 50 percent grant under the ISM scheme, again treated as a special case for this pioneering project.
Infrastructure Development and Coordinated Implementation
The development of essential external infrastructure, including roads, power supply, and water facilities, will be undertaken by the APIIC. The expenditure for this infrastructure development will be covered from the relevant budget allocation of the State IT, Electronics, and Communications Department.
To ensure the prompt and successful implementation of this first ISM-sanctioned project in the state, several key departments have been directed to work in close coordination. The state revenue, energy, municipal administration, and other concerned departments are to collaborate with the IT, electronics, and communications department. Specific instructions have been issued to the District Collector of Visakhapatnam, the VC & MD of APIIC, the Metropolitan Commissioner of VMRDA, the CMD of APEPDCL, and other relevant officials to take all necessary actions to facilitate the expeditious grounding and execution of this critical semiconductor facility.
