Micron, Aequs Get Govt Approval for SEZ Units in Gujarat, Karnataka

The government has approved 2 Special Economic Zone (SEZ) proposals related to semiconductor and electronics manufacturing. The clearances were given by the Board of Approval for SEZs after changes were made to simplify rules for these capital-intensive sectors.

Micron’s ₹13,000 Crore Project in Gujarat

Micron Semiconductor Technology India will set up an SEZ in Sanand, Gujarat. The project covers 37.64 hectares and involves an estimated investment of ₹13,000 crore. The facility will focus on semiconductor manufacturing.

Aequs to Establish SEZ in Dharwad

Hubballi Durable Goods Cluster Private Ltd (part of the Aequs Group) will set up an SEZ for electronics components in Dharwad, Karnataka. The approved area is 11.55 hectares, and the estimated investment is ₹100 crore.

Changes to SEZ Rules

The approvals follow amendments to the SEZ Rules, notified on June 3, 2025. These changes were made to address the specific requirements of the semiconductor and electronics sectors, which typically involve high costs, longer timelines, and dependency on imported components.

One major change was reducing the minimum land area required for such SEZs from 50 hectares to 10 hectares. This applies specifically to zones set up for semiconductor and electronic component manufacturing.

Another amendment allows the Board of Approval to relax the condition that SEZ land must be free of encumbrances. This is permitted in cases where land is mortgaged or leased to government entities or their authorised agencies.

Other Regulatory Changes

SEZ units will now be able to include the value of goods received or supplied on a free-of-cost basis in their Net Foreign Exchange (NFE) calculations, as per customs valuation norms.

Additionally, Rule 18 was revised to allow these SEZ units to supply goods to the Domestic Tariff Area after paying applicable duties.

Read more: India's First AI SEZ Planned for Nava Raipur with ₹1,000 Crore Investment!

Conclusion

Micron and Aequs will proceed with their SEZ plans under the amended rules. Both projects are expected to operate within the updated guidelines specific to semiconductor and electronics manufacturing.

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