PIB Summary - 10th June 2025 | PIB (Press Information Bureau) Summary - UPSC PDF Download

Govt Notifies SEZ Reforms to Boost Semiconductor and Electronics Component Manufacturing

Recent Reforms in Semiconductor and Electronics SEZs

• Minimum Land Requirement: The minimum land requirement for Special Economic Zones (SEZs) dedicated to semiconductors and electronics has been significantly reduced from 50 hectares to 10 hectares.
• Encumbrance Norms: The rules regarding encumbrance on SEZ land have been relaxed. Now, land does not need to be encumbrance-free if it is mortgaged or leased to the Central or State Government or authorized agencies.
• Net Foreign Exchange (NFE) Reform: An amendment to Rule 53 has changed the way NFE is calculated. Free-of-cost goods, whether received or supplied, now count toward this calculation.
• Domestic Tariff Area (DTA) Access: SEZ units in the semiconductor and electronics sectors are now allowed to sell domestically after paying duties. This change encourages greater integration with the domestic market.

Strategic Importance

• Encouraging High-Tech Manufacturing: The reforms acknowledge the long gestation period and capital-intensive nature of the semiconductor industry, aiming to attract high-tech manufacturing.
• Strengthening the Semiconductor Ecosystem: The changes align with the objectives of the India Semiconductor Mission (ISM) and the Aatmanirbhar Bharat initiative, fostering a robust semiconductor ecosystem in the country.
• Job Creation: The reforms are expected to generate specialized employment opportunities in areas such as electronics design, fabrication, packaging, and other related fields.

Major Investments Approved

Micron Semiconductor Technology India Pvt Ltd

• Location: Sanand, Gujarat
• Investment: ₹13,000 crore
• Area: 37.64 hectares

Hubballi Durable Goods Cluster Pvt Ltd (Aequs Group)

• Location: Dharwad, Karnataka
• Investment: ₹100 crore
• Area: 11.55 hectares

Implications for Economy and Policy

• Boosting Investments: The reforms are expected to stimulate both foreign direct investment (FDI) and domestic investment in advanced technology sectors. 
• Reducing Import Dependence: By promoting domestic chip manufacturing, the reforms aim to reduce reliance on foreign chip imports, enhancing strategic technological sovereignty. 
• Setting Precedents: The targeted SEZ reforms set a precedent for tailoring regulations to meet the specific needs of different sectors, encouraging similar initiatives in the future. 
• Integrating SEZ Production: The reforms promote the integration of SEZ production with domestic value chains, fostering a more cohesive and efficient manufacturing ecosystem. 

NHAI releases first-ever Asset Monetisation Strategy Document to drive growth in Road Sector

• Definition: Asset monetisation involves unlocking value from existing public infrastructure by leasing or transferring revenue rights to private entities for a specified period, while the government retains ownership.
• Objective: The primary goal is to generate non-debt capital for new infrastructure projects and alleviate fiscal pressure on the government.
• Key Models:
  • Toll-Operate-Transfer (ToT)
  • Infrastructure Investment Trusts (InvITs)
  • Real Estate Investment Trusts (REITs)
  • Securitisation of revenue streams

• Structured Framework: The strategy employs models like ToT, InvITs, and securitisation for asset monetisation.
• Financial Mobilisation: NHAI has successfully raised over ₹1.4 lakh crore through the monetisation of 6,100 km of highways under the National Monetisation Pipeline (NMP).
• Document Transparency: The strategy document is publicly accessible on NHAI’s website, promoting transparency and stakeholder engagement.

• Value Maximisation: Enhancing the value of government-owned road assets.
• Process Transparency: Improving transparency and information dissemination for investors.
• Market Development: Expanding the investor base and engaging stakeholders.

• Reduces dependence on traditional government funding methods such as budgetary support and debt.
• Promotes efficiency in road operations and maintenance by the private sector.
• Aligns with the Asset Monetisation Plan for 2025–30, fostering infrastructure-led economic growth.

•  Ensures the financial sustainability of NHAI. 
•  Encourages private investment and fosters long-term partnerships. 
•  Improves road quality and durability through advanced technology and best practices from the private sector. 
•  Represents a shift towards market-based infrastructure financing in India.