GIDC SanandMega ProjectMicronTataISM
AMLEGALS / Gujarat / Sanand
Business Setup in Sanand

The auto, EV and semiconductor cluster the country is converging on.

Sanand brings together an activated GIDC land bank, anchor OEMs producing at scale and India's first commercial semiconductor packaging plant.

An activated cluster, land, anchors and incentive stack are all already in place.
$2.75 B
Micron ATMP, India’s first commercial semiconductor packaging plant (sanctioned Sept 2023)
~70%
Combined capex support (ISM 50% plus Gujarat top-up equal to 40% of central assistance)
99 yr
Standard GIDC lease tenure on long-term lease at a one-time premium plus service charge
Capabilities

Six capabilities. One clean Sanand file.

01

GIDC plot allotment

GIDC · 99-year lease

Application strategy, plot category, environmental fit, lease premium negotiation and transfer governance under the GIDC Act, 1962.

02

Mega Project incentive

Mega Project · ₹1,000 cr

Empowered Committee submission, MoU negotiation, custom incentive package and milestone-wise drawdown under the Gujarat Industrial Policy 2020.

03

Semiconductor / ATMP stack

ISM · 50% + Gujarat top-up

India Semiconductor Mission grant design, technology partner agreement, IP escrow and milestone disbursement, layered with the Gujarat Semiconductor Policy 2022-27.

04

Environment & factory clearance

EIA · GPCB · DISH

CTE/CTO, Environmental Clearance, OSH Code 2020 registration and factory licence (formerly Factories Act), hazardous waste and effluent governance under State and Central regimes.

05

JV & supply chain contracts

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.

06

Operating compliance

IR Code · OSH Code · SS Code

Labour law architecture under the Industrial Relations Code, the OSH Code (including contract labour), the Code on Social Security (EPF/ESIC), Labour Welfare Fund and standing orders.

The Sanand sequence

From site shortlist to operating governance.

01

Site & plot strategy

GIDC Sanand I vs II vs III, plot category, ground coverage and ancillary services. Output: a viable plot shortlist before MoU.

02

Mega Project MoU

Empowered Committee submission with project report, capex schedule, employment commitment and incentive ask. Output: a signed MoU.

03

ISM application

Where semiconductor / ATMP, ISM grant application with technology partner, IP escrow, capex milestones and Gujarat top-up (40% of central support).

04

Land & environment

GIDC allotment, CTE/CTO and Environmental Clearance, sequenced to avoid construction-stage delay.

05

Factory and labour

OSH Code registration and factory licence (formerly Factories Act), contractor licensing (formerly CLRA), EPF, ESIC and standing orders under the IR Code. Output: Day-1 worker register and HR architecture.

06

Operating governance

Quarterly SGST reimbursement, capital subsidy drawdown, technology transfer reporting and Annual Return on FLA / FCGPR governance.

The statutes that govern this cluster
Each is a constraint we design to.
GIDC
Gujarat Industrial Development Corporation Act, 1962
Plot allotment, lease, transfer and infrastructure governance at Sanand I/II/III.
GIDC
ISP
Gujarat Industrial Policy 2020
Mega / Ultra Mega Project regime with custom incentive package on capex, SGST, electricity duty and stamp duty.
DoI
ISM
India Semiconductor Mission
50% fiscal support for fab, ATMP, DLI, milestone-disbursed, technology-partner backed.
MeitY
OSH
OSH Code 2020 (formerly Factories Act) + Labour Codes
Plant registration, hazardous process governance, contract labour and welfare architecture.
DISH
Answers

The five questions a Sanand investor asks first.

01Why has Sanand emerged as India’s most concentrated manufacturing cluster?

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.

02How is a GIDC plot allotted and what is the standard tenure?

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.

03How are Mega Projects defined under the Gujarat Industrial Policy 2020?

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.

04How is the India Semiconductor Mission (ISM) stack applied to Sanand?

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). The Gujarat Semiconductor Policy 2022-27 adds State assistance equal to 40% of the central support (roughly 70% of eligible cost combined). 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.

05What environmental and labour clearances must be sequenced for a Sanand plant?

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) establishment registration and factory licence with the DISH under the Occupational Safety, Health and Working Conditions Code 2020 (which subsumed the Factories Act, 1948), (iv) Labour Welfare Fund and ESIC, (v) contractor licensing under the OSH Code 2020 (which replaced the Contract Labour (R&A) Act, 1970) where contract workmen are deployed. The land use must already be industrial (GIDC plot eliminates the need for Section 63AA conversion).

Engage AMLEGALS

Get the Sanand sequence right, the first time.

GIDC plot, Mega Project MoU, ISM grant and operating compliance, we hold every step.