Sanand has the three things every Tier-1 supply chain needs in one place — an activated GIDC land bank, anchor OEMs already producing at scale, and India’s first commercial semiconductor packaging plant. The investment runway here is measurably shorter than anywhere else in the country.
GIDC · 99-year lease
Application strategy, plot category, environmental fit, lease premium negotiation and transfer governance under the GIDC Act, 1962.
Mega Project · ₹1,000 cr
Empowered Committee submission, MoU negotiation, custom incentive package and milestone-wise drawdown under the Gujarat Industrial Policy 2020.
ISM · 50% + 40%
India Semiconductor Mission grant design, technology partner agreement, IP escrow and milestone disbursement — layered with Gujarat ISP 2020.
EIA · GPCB · DISH
CTE/CTO, Environmental Clearance, Factories Act registration, hazardous waste and effluent governance under State and Central regimes.
JV · Tech transfer · Off-take
OEM-supplier MoU, technology transfer, EPC and long-term off-take for the cluster ecosystem — with cross-border tax architecture.
IDA · CLRA · EPF
Labour law architecture under the Industrial Disputes Act, Contract Labour (R&A) Act, EPF/ESIC, Labour Welfare Fund and standing orders.
GIDC Sanand I vs II vs III — plot category, ground coverage and ancillary services. Output: a viable plot shortlist before MoU.
Empowered Committee submission with project report, capex schedule, employment commitment and incentive ask. Output: a signed MoU.
Where semiconductor / ATMP, ISM grant application with technology partner, IP escrow, capex milestones and Gujarat 40% layer.
GIDC allotment, CTE/CTO and Environmental Clearance — sequenced to avoid construction-stage delay.
Factories Act registration, CLRA, EPF, ESIC and standing orders. Output: Day-1 worker register and HR architecture.
Quarterly SGST reimbursement, capital subsidy drawdown, technology transfer reporting and Annual Return on FLA / FCGPR governance.
Sanand combines three deep advantages — (i) an activated land bank across GIDC Sanand I, II and III with built-up infrastructure and connectivity to Mundra/Pipavav ports and the dedicated freight corridor, (ii) anchor OEMs already producing at scale (Tata Motors, which acquired the Ford plant in 2022; Maruti Suzuki India’s Suzuki Motor Gujarat hub since 2017; MG Motor), and (iii) the first commercial semiconductor packaging plant in India sanctioned by the Union Cabinet in September 2023 at USD 2.75 billion (Micron Technology, 22nm OSAT). Tata Electronics has also announced ATMP at Sanand. The combination collapses time-to-production for any auto, EV or semiconductor supply-chain investor.
Plot allotment is governed by the Gujarat Industrial Development Corporation Act, 1962 read with the GIDC Land Disposal Regulations, 2009. The application is made online through the GIDC portal with the project report, FDI route opinion, MoEFCC environmental category, employment commitment and capex schedule. Allotment is on long-term lease (typically 99 years) at a one-time lease premium plus a small annual service charge. Plots are categorised by industry (general, chemical, electronics) and physical infrastructure (water, effluent, common cable trench) is provided by GIDC. Transfer is permitted with prior consent and a transfer fee.
Under the Gujarat Industrial Policy 2020, a Mega Project is an investor making fixed capital investment of ₹1,000 crore or more and creating direct employment of 2,000 or more. An Ultra Mega Project is ₹2,000 crore plus / 4,000 plus jobs. Eligible Mega/Ultra Mega Projects are entitled to a custom incentive package negotiated with the Empowered Committee, covering capital subsidy, SGST reimbursement, electricity duty exemption, stamp duty reimbursement and — in the case of semiconductors — an additional layer on top of the central India Semiconductor Mission grant. The package is captured in an MoU with the Government of Gujarat.
The India Semiconductor Mission, administered by MeitY, offers 50% fiscal support of the eligible project cost for commercial semiconductor fabs, display fabs, compound semiconductor / silicon photonics / sensors fabs, OSAT/ATMP and design (DLI). Gujarat layers an additional 40% on top of the eligible expenditure for the maiden cluster (up to 90% combined for the first projects). The fiscal support is disbursed milestone-wise against capex and employment achievement, with technology partner agreements and IP escrow that are reviewed by the empowered authority. Micron at Sanand is the live precedent.
A typical OEM or ATMP plant at Sanand will sequence (i) Consent to Establish (CTE) and Consent to Operate (CTO) from the Gujarat Pollution Control Board under the Water Act 1974 and the Air Act 1981, (ii) Environmental Clearance from MoEFCC under the EIA Notification 2006 where the project crosses the threshold (Schedule), (iii) Factories Act, 1948 registration with the DISH, (iv) Labour Welfare Fund and ESIC, (v) Contract Labour (R&A) Act, 1970 registration where contract workmen are deployed. The land use must already be industrial (GIDC plot eliminates the need for Section 63AA conversion).
Tata–PSMC fab, DSIRDA permits, Town Planning Scheme, plug-and-play and ISM stack.
IBU, FME, aircraft leasing, IIBX and the Section 80LA tax holiday.
Title diligence, Section 63AA conversion, NA permission and RERA registration.
GIDC plot, Mega Project MoU, ISM grant and operating compliance — we hold every step.