By IANS,
New Delhi : Finance Minister P. Chidambaram Thursday proposed to allow incentives to companies in the semiconductor sector.
“We recognise the pivotal role of semiconductor wafer fabs in the eco-system of manufacture of electronics,” Chidambaram said while presenting the union budget 2013-14 to the lower house of parliament.
“A company investing Rs.100 crore or more in plant and machinery during the (next fiscal) period will be entitled to deduct an allowance of 15 percent of the investment,” he said.
“This will be in addition to the current rates of depreciation. There will be enormous spill-over benefits to small and medium enterprises.”
The finance minister proposed to provide more incentives to the sector like zero customs duty for plant and machinery.
The national electronics policy 2012 intends to promote manufacturing of electronic goods in India.