Center informs SEZ Reforms to promote semiconductor, electronic manufacturing | Mint

New Delhi: The central government has announced a series of policy relaxation for special economic zones (SEZs) aimed at promoting high-tech manufacturing, especially in semiconductors and electronic components, within these zones, the Ministry of Commerce and Industry said in a statement on Monday. These changes are designed to attract pioneering investments, facilitate regulatory barriers and strengthen India’s position in the global semiconductor value chain, the ministry said. A key reform involves modifying Rule 5 of the Sez Rules, 2006, which reduces the minimum continuous land requirement for SEZs dedicated to the manufacture of semiconductor or electronic components of 50 hectares to just 10 hectares. In addition, Rule 7 has been amended to allow the advice of approval to relax ground -free land norms when land is linked or leased to the central or state governments or their authorized agencies. The government has also amended Rule 53 to include the value of goods received and free of costs provided with the net foreign exchange (NFE) calculations, according to customs valuation forms. Another important change under Rule 18 can now sell SEZ units in these sectors in the domestic tariff area after the appropriate duties have been paid. These amendments, which were notified by the Department of Trade on June 3, 2025, are expected to incite investment in capital-intensive, import-dependent industries with long pregnancy periods-which also generate a lot of competent employment. “The amendments will increase high-tech manufacturing in the country, encourage the growth of the semiconductor ecosystem and create highly skilled jobs,” the statement of the Ministry of Trade states. After these reforms, the Board of approval for Sezs cleared two proposals: Micron Semiconductor Technology India PVT Ltd (MSTI) and Hubballi Durable goods group PVT Ltd (AEEQUS Group). Micron will establish a semiconductor of Sez in Sanand, Gujarat, covering 37.64 hectares with an estimated £ 13,000 crore investment. AEQUS will set up an electronic components of Sez in Dharwad, Karnataka, which spans 11.55 hectares with an investment of approximately £ 100 crore.