Jaipur, May 23 (IANS) Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Saturday that Rajasthan has immense potential to become a major hub for electronics manufacturing, highlighting the Centre's push to expand the sector under Prime Minister Narendra Modi's leadership.

Addressing industry representatives, investors and experts during a dialogue on the electronics and semiconductor sectors at the Chief Minister's Office in Jaipur, Union Minister Vaishnaw noted that India is rapidly advancing in electronics manufacturing and urged investors to confidently establish units in Rajasthan.

He said the Centre has paved the way for 450 factories in the electronics sector over the past two years.

Under the Electronic Components Manufacturing Scheme (ECMS), approvals for 75 factories have been granted within a year, while the Union Cabinet has also increased budgetary support for the scheme.

Union Minister Vaishnaw assured investors that the Centre and the state government would provide full support to promote the sector and noted that electronics manufacturing would generate large-scale employment opportunities.

Chief Minister Bhajan Lal Sharma, who attended the event alongside the Union Minister Vaishnaw, said India has joined the select group of nations capable of indigenous semiconductor production.

He highlighted that the India Semiconductor Mission is moving ahead at a rapid pace with an incentive package exceeding Rs 76,000 crore.

The Chief Minister said semiconductor chips have become crucial across sectors ranging from telecom and consumer electronics to defence and space technology.

He added that the future would belong to nations and states developing strong semiconductor capabilities.

Chief Minister Sharma said Rajasthan's first semiconductor cluster was inaugurated this month in Bhiwadi. Spread across 50 acres, the facility is expected to manufacture nearly six crore chips annually and has already attracted investment proposals worth more than Rs 1,200 crore from 20 companies.

Highlighting Rajasthan's advantages, the Chief Minister added that the state's "Triple-S Factor" -- Silica, Skill and Solar -- would emerge as a key strength for the semiconductor industry.

He said the Rajasthan Semiconductor Policy and Rajasthan Industrial Development Policy have been introduced to create a robust ecosystem, offering special incentives for semiconductor, data centre and defence manufacturing projects.

Under the Rajasthan Investment Promotion Scheme (RIPS) 2024, industries are receiving financial and infrastructure support, including additional capital subsidies for projects approved under the India Semiconductor Mission and interest subvention of up to five per cent on term loans.

The Chief Minister announced that work has begun to develop the Jodhpur-Pali-Marwar Industrial Area (JPMIA) and the Kakani region as the "Silicon Valley of Rajasthan".

According to CM Sharma, the region is being developed as an integrated industrial ecosystem for chip design, electronics manufacturing and system development.

He noted that Rajasthan's connectivity through the Delhi-Mumbai Industrial Corridor and proximity to industrial hubs such as Bhiwadi, Neemrana and Kotputli provide strong logistics and supply-chain advantages.

He added that the state's Single Window Clearance System has been strengthened, enabling digital and time-bound approvals, including land allotment and project clearances.

Inviting investors to Rajasthan, CM Sharma said the state aims to build a $350-billion economy, with electronics and semiconductors expected to play a leading role.

Industry and Commerce Minister Rajyavardhan Rathore said semiconductors have become the foundation of global economic strength and digital self-reliance.

He said the India Semiconductor Mission is progressing in "mission mode" and Rajasthan is among the most suitable states for such investments.

Minister Rathore added that the state government is offering electricity duty exemptions, stamp duty relief, capital subsidies, interest subvention and green initiative reimbursements for semiconductor-related projects, including OSAT and ATMP facilities.

"Customised incentive packages are also available for investments exceeding Rs 500 crore, while land allotment procedures have been made more transparent and efficient," he said.

--IANS

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