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Hurdles to be removed for Intel fab unit

NEW DELHI: The decks are set to be cleared for electronic hardware majors like Intel to set up units in India, after the Ratan Tata-led Investment Commission took up the matter with Finance Minister P Chidambaram to resolve contentious issue of fiscal incentives for such units.

"In the case of Intel, the Investment Commission has recommended a set of concessions for electronic hardware manufacturing ... The policy is under preparation. I think it is in the final stages,'' Mr. Chidambaram told reporters after a meeting with the Commission.

The Department of Telecom had sent its views, he said, adding, "I am told it's in the very last phase of finalisation after which it will go to the Cabinet.''

Commission's role

The Commission had recommended fiscal concessions to facilitate electronic hardware manufacturing in the counntry and for high tech manufacturing like fab, he said.

Information Technology Minister Dayanidhi Maran had said that global electronic major Intel was willing to set up a $400 million assembly unit in India but it reportedly ran into difficulty because of the Government not agreeing to give the necessary fiscal incentives.

``The Investment Commission has played a great part in motivating Intel to come to India.... They will come back to India. They are in the final stages,'' Mr. Chidambram said.

Apart from Ratan Tata, the other two members of the Investment Commission are Ashok Ganguly, ICICI OneSource, and Deepak Parekh, Chairman of HDFC. The Investment Commissionhas identified $ 28-30 billion that could be pushed with its help.— PTI

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