Sitharaman hails semiconductor plant; says Assam tops utilisation of special central fund

Guwahati, Nov 7 (PTI) Stating that Tata Group's upcoming semiconductor plant will put Assam in the driver seat of the engine for developed India, Union Finance Minister Nirmala Sitharaman on Friday said the state tops the list in the country for maximum utilisation of special central fund to create capital assets.

Sitharaman reached Guwahati in the morning on a two-day tour, during which she is scheduled to unveil a range of projects across different places of the state.

"The centre gives funds to every state under the Special Assistance to States for Capital Investment (SASCI) scheme to build capital assets like hospitals, roads and other infrastructure. Assam also gets it," she said while inaugurating the Brahmaputra riverfront project here.

The money is given to the states as 50-year interest-free loans to boost the states' capital expenditure, Sitharaman said.

"The way Assam is planning to create assets, it is utilising the central fund to the maximum level. Assam tops the list," she added.

Although all states are creating assets, nobody is doing it like Assam is working, the Union Finance Minister said in her speech.

In the afternoon, she visited the upcoming facility of Tata Electronics' Outsourced Semiconductor Assembly and Test (OSAT), situated at Jagiroad in Morigaon district of central Assam.

With an investment of Rs 27,000 crore, the facility is expected to produce up to 48 million semiconductor chips per day, employing advanced packaging technologies like flip chip and Integrated System in Package (ISIP). It will generate around 15,000 direct and 11,000-13,000 indirect jobs.

"Through this unit, Assam probably will be the driver of the engine for Viksit Bharat. I think Assam has a golden moment," Sitharaman told a group of entrepreneurs and students during an interaction at the plant site in the presence of Chief Minister Himanta Biswa Sarma.

The under-construction facility is developing an ecosystem, which is supporting local entrepreneurship with technology and orders, she added.

"Youth in Assam should really come out now and take the little risk of not being comforted by a job which pays you salary, but the risk of doing business on your own. Today, you have the right kind of people to handhold you. Come out and contribute to the Viksit Bharat dreams," Sitharaman said.

She stressed that Assam has taken the lead by bringing a semiconductor manufacturing unit to the state, demonstrating foresight and dynamism in industrial policy.

"Just 10 days ago, PM Modi launched a Rs 1 lakh crore fund for research and development. This fund is accessible not only to government institutions but also to private sector entities across the country to promote innovation and research," Sitharaman said.

The Union Finance Minister's Office said that the semiconductor project, which is set to become one of the country's premier manufacturing sites, aligns with the nation's broader goal of establishing a self-sufficient semiconductor ecosystem.

"The Morigaon semiconductor facility is part of a wider network of government-backed projects aimed at bolstering India's semiconductor production capabilities," it added.

Under the leadership of Prime Minister Narendra Modi, the NDA government has been promoting the growth of semiconductor and chip manufacturing within the country, paving the way for technological advancement and economic resilience, the post said.

"It is designed to cater to essential sectors such as automotive, electric vehicles, telecommunications, and consumer electronics. Hon'ble Prime Minister Shri @narendramodi, since 2014, has focused on the holistic development of the North-East, which is critical for achieving the goal of #ViksitBharat by 2047," Sitharaman's office said.

The Union Finance minister inaugurated the 'Gateway of Guwahati' project, comprising a terminal and jetty on Brahmaputra riverbank, developed at a cost of Rs 305 crore.

Later, she dedicated the Brahmaputra Riverfront project, set up at Sati Radhika Udyan for an expenditure of Rs 327 crore, in the state capital to the people.

"I heard that there was a fish market beneath this riverfront project. CM Sarma told me that it still exists and they can still go to the river to catch fish. So, this is a good blend between livelihood and development," Sitharaman said.

Urban development is necessary, but not by displacing the people from the localities, she added.

"We need to work to improve people's lives. Bringing in changes by not disturbing the livelihood of people is an example of good governance. The fine balance between the two is important," the central minister said.

On Saturday, she will go to Gohpur in Biswanath district and lay the foundation stone for the Swahid Kanaklata Barua State University.

The Assam Cabinet in June this year had approved development of the varsity at a cost of Rs 400 crore.

Earlier during the day, she was accorded a warm welcome by CM Sarma at Lokpriya Gopinath Bordoloi International (LGBI) Airport in Guwahati and state Finance Minister Ajanta Neog.

Sarma, accompanying Sitharaman to Jagiroad, expressed heartfelt gratitude for her support in bringing the semiconductor project to Assam. PTI TR BDC TR RG