Gujarat Seeks ₹40,783 Crore Centre Grant for Semiconductors in Sanand and Dholera SIR

What Gujarat has asked for

The Gujarat government's Department of Science and Technology has sought ₹40,783 crore from the Government of India to develop the semiconductor industry in Sanand and Dholera SIR over the next six years. The request is for funding support, so it is a claim on central resources rather than money already released.

Principal Secretary Mona Khandhar described the aim as a robust and sustainable semiconductor and electronics ecosystem across Sanand and Dholera SIR within six years.

Why Sanand and Dholera

The request builds on projects already underway. Of the five semiconductor facilities approved by the Government of India under the Semicon India programme, four projects are being set up in Gujarat.

A chip packaging cluster is taking shape in GIDC Sanand with major projects by Micron Technology Inc, CG Semi and Kaynes Semicon. India's first commercial semiconductor fab is being set up in Dholera SIR by TATA Electronics Pvt. Ltd. The fab is to be run as a joint venture between Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corp, at an estimated cost of Rs 91,000 crore.

What the grant would support

According to the department, the plan centres on physical infrastructure. It calls for specialised manufacturing clusters in Sanand and Dholera that provide plug-and-play utilities, so companies can scale operations quickly. The proposal also covers industrial infrastructure, including utilities, logistics, and security systems, to meet global standards.

Supply chains and skills are also part of the plan. Establishing a robust ecosystem of suppliers is treated as crucial for supporting the semiconductor industry. Workforce development challenges are identified as key priorities that require significant financial resources.

Who runs the Dholera SIR

The Dholera Special Investment Region Development Authority (DSIRDA) is in charge of planning and development of DSIR and will encompass the function of administering government land within DSIR. A Special Purpose Vehicle (SPV) named Dholera Industrial City Development Limited (DICDL) has been created between the Central Government (NICDC Trust) and the State Government (DSIRDA) of Gujarat to implement the project.

The SPV is made up of a 51% stake of the Government of Gujarat through DSIRDA and a 49% stake of the Government of India through NICDC Trust. Any central funding of the kind requested would therefore pass through a jointly owned structure already responsible for land and infrastructure in the region.

Status as of October 2026

The request itself dates from early 2025. The report on the request is dated 18 January 2025. Since then, Centre-level decisions have approved individual projects in the region rather than this sum. As per a gazette notification issued on April 9, 2026, the central government has formally notified a 66.166-hectare SEZ located in Gujarat's Dholera Special Investment Region (SIR). The zone is earmarked for semiconductor manufacturing, electronic hardware production, and IT and IT-enabled services.

In May 2026, the Union Cabinet approved further units. The Centre approved two new semiconductor projects under its flagship India Semiconductor Mission, including the country's first commercial Mini/Micro-LED display facility and a major semiconductor packaging unit.

What comes next

The ₹40,783 crore figure remains a request. Whether and in what form the Government of India responds is the key next step, and it will determine how far the cluster plans for Sanand and Dholera can proceed on the scale described. Meanwhile, the Tata fab and the SEZ notification set the physical and legal base on which any later support would be built.