The Hindu Business Line : Panel moots fiscal sops for Intel

Important role
The Investment Commission has played a crucial role in facilitating large projects
It has identified an estimated $28-$30 billion of investments for facilitation and support

New Delhi , July 7

Global chip giant Intel's plans for establishing a manufacturing base in the country has got a boost, with the Investment Commission recommending to the Government that the semiconductor major be given a set of fiscal concessions.

"I think the Investment Commission had a great part in motivating Intel to come to India and (then) come back to India... .For Intel, they have recommended a set of fiscal concessions," Mr P. Chidambaram, Finance Minister, told newspersons here on Friday after a meeting with the Investment Commission headed by Mr Ratan Tata.

Fiscal sops

Mr Chidambaram said that the Investment Commission has suggested fiscal incentives to facilitate electronic hardware manufacture in the country and for high-tech manufacturing like fabrication plants. He said a Government policy in this area was under preparation and in the final stages.

It may be recalled that the Intel Chief, Dr Craig Barrett, had during his visit to India in December last year said that the discussions with the Government on the possibility of establishing a manufacturing plant were still on, but added that the company was not ready to announce anything yet. His comments had come in the wake of reports that Intel was seeking various incentives for setting up a wafer testing facility in India, including free land, 100 per cent exemption from income-tax for 15 years and exemption from dividend distribution tax and fringe benefit tax.

`Unique role'

Meanwhile, Mr Chidambaram on Friday described the role played by the Investment Commission as a "unique role", given that they bring the investor right up to the door (of the Government) after clearing their misgivings and misconceptions and encouraging them.

"They (Investment Commission) are bringing large investors. They have done their part. When they hand them over, it is for the Government to complete the last mile and see to it investments are made," he said.

Sharing the successes achieved so far by the facilitation provided by the Investment Commission, Mr Chidambaram said that it has played a crucial role in facilitating large projects such as the Gujarat Pipavav Port Ltd (Maersk led project), the Posco project (facilitated MOU signing with Orissa Government), the LG mobile handset manufacturing project (resolved inverted duty structure), the Commonwealth Bank and Macquarie Bank and Space TV projects.

`Exciting proposal'

In particular, Mr Chidambaram highlighted South Africa's Sasol investment plans as an "exciting" proposal that could be facilitated.