CG Power and Industrial Solutions Ltd on Wednesday said that it has filed an application with the Ministry of Electronics and Information Technology (MeitY), Government of India to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in India. It has also seeked grant of subsidy for the project under the Modified scheme for setting up of Compound Semiconductors/ Silicon Photonics/ Sensors Fab/ Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP)/ Outsourced Semiconductor Assembly and Test (OSAT) facilities in India.
In a regulatory filing, the company said, “We wish to inform you that the company has today filed an application with Ministry of Electronics and Information Technology (MeitY), Government of India seeking approval to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility and the grant of subsidy for the said project under the Modified scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab/ Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP)/ Outsourced Semiconductor Assembly and Test (OSAT) facilities in India.”
The company further stated that it proposes to implement the project as a joint venture in partnership with technology providers/anchor customers. This is still “under discussion”.
The estimated investment on the project over a period of five years is $791 million and according to the company statement, it is expected to be funded by a combination of subsidy, JV Partners equity contribution and debt.
Earlier in October, CG Power and Industrial Solutions had said that it will invest about Rs 347 crore including its ongoing project, in capacity expansion of its various units. CG Power will spend about Rs 155 crore to expand the manufacturing capacity of instrument transformers and condenser bushings, medium voltage switchgear, and GIS units at its Switchgears Division complex in Nashik. It is also planning to expand the manufacturing capacity of large industrial machine (LIM) units at Mandideep, Bhopal. The company will further expand the capacity of power transformers (T3 unit) at Bhopal.