Content :

1. Govt Notifies SEZ Reforms to Boost Semiconductor and Electronics Component Manufacturing
2. NHAI releases first-ever Asset Monetisation Strategy Document to drive growth in Road Sector

Govt Notifies SEZ Reforms to Boost Semiconductor and Electronics Component Manufacturing

Context :The Government of India has notified targeted SEZ rule reforms to accelerate investment and high-tech manufacturing in the semiconductor and electronics component sectors.

Relevance : GS 3(Minerals ,Mining ,Manufacturing )

Key Reforms Introduced

• Minimum Land Requirement Reduced:
  • For SEZs exclusive to semiconductors/electronics, the minimum land requirement is now 10 hectares, down from 50 hectares.

• Encumbrance Norms Eased:
  • SEZ land no longer needs to be encumbrance-free if mortgaged/leased to Central/State Government or authorised agencies.

• Net Foreign Exchange (NFE) Reform:
  • Free-of-cost goods (received/supplied) now count toward NFE calculation, per Rule 53 amendment.

• Domestic Tariff Area (DTA) Access:
  • SEZ units in these sectors can now sell domestically after paying duties—encourages market integration.

Strategic Importance

• Encourages High-Tech Manufacturing:
  • Recognises long gestation and capital-intensive nature of semiconductor industry.

• Strengthens Semiconductor Ecosystem:
  • Aligns with India Semiconductor Mission (ISM) and Aatmanirbhar Bharat goals.

• Generates High-Skilled Jobs:
  • Expected to create specialized employment in electronics design, fabrication, packaging, etc.

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

• Boosts FDI and domestic investment in cutting-edge tech sectors.
• Reduces dependence on foreign chip imports, enhancing strategic tech sovereignty.
• Sets a precedent for targeted SEZ reforms tailored to sector-specific needs.
• Encourages integration of SEZ production with domestic value chains.

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

Context : NHAI has released its first Asset Monetisation Strategy to enhance private investment, unlock road asset value, and ensure sustainable infrastructure financing.

Relevance : GS 3(Economy & Infrastructure)

Asset Monetisation – Key Points

• Definition: Process of unlocking value from existing public infrastructure assets by leasing or transferring revenue rights to private players for a fixed period, while retaining ownership.
• Objective: Generate non-debt capital for new infrastructure creation and reduce fiscal pressure on the government.
• Key Models:
  • Toll-Operate-Transfer (ToT)
  • Infrastructure Investment Trusts (InvITs)
  • Real Estate Investment Trusts (REITs)
  • Securitisation of revenue streams

Key Highlights of the Strategy

• Structured Framework for Monetisation:
  • Utilizes Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvITs), and securitisation models.

• Impressive Financial Mobilisation:
  • Raised over ₹1.4 lakh crore through monetisation of 6,100 km of highways under the National Monetisation Pipeline (NMP).

• Document Accessibility:
  • Strategy document made publicly available on NHAI’s website for transparency and stakeholder engagement.

Three Core Pillars

1. Value Maximisation of government-owned road assets.
2. Process Transparency and better information dissemination for investors.
3. Market Development by expanding investor base and engaging stakeholders.

Strategic Importance

• Reduces reliance on traditional government funding like budgetary support and debt.
• Promotes private sector efficiency in road operations and maintenance.
• Aligns with Asset Monetisation Plan 2025–30, boosting infrastructure-led economic growth.

Benefits and Impacts

• Ensures financial sustainability of NHAI.
• Encourages private investment and long-term partnerships.
• Improves road quality and durability through advanced tech and private sector practices.
• Demonstrates a shift to market-based infrastructure financing in India.