New Cities India

Policy Decision

Rajasthan Semiconductor Policy-2026 Names Jodhpur-Pali-Marwar a Priority Semiconductor Corridor

The Rajasthan government has designated the Jodhpur-Pali-Marwar (JPMIA) and Kankani industrial areas as Priority Semiconductor Corridors under a new state semiconductor policy, giving them fast-track land, utilities and clearances for OSAT, ATMP and sensor investment — but no semiconductor plant has yet been confirmed for the corridor itself.

Jodhpur-Pali Industrial Smart City — Rajasthan Semiconductor Policy-2026 Names Jodhpur-Pali-Marwar a Priority Semiconductor Corridor
DecisionJodhpur-Pali-Marwar and Kankani industrial areas declared Priority Semiconductor Corridors
Deciding bodyGovernment of Rajasthan (Chief Minister's Office / Department of Industries and Commerce)
First announcedFebruary 4, 2026
Policy document unveiledMarch 24, 2026 — "Rajasthan Semiconductor Policy-2026"
Target segmentsOSAT, ATMP, sensors, related electronics; fabless design ecosystem
Key incentive100% electricity duty exemption for 7 years; 75% stamp duty/land conversion exemption
ISM-linked support60% grant equivalent to capital subsidy approved under India Semiconductor Mission
Nodal agencyDepartment of Industries and Commerce, via RajNivesh portal
Oversight bodiesState Level Sanctioning Committee (SLSC) and State Empowered Committee
Status as ofJuly 2026 — corridor designation in force; no OSAT/ATMP unit confirmed for JPMIA/Kankani yet

What Was Decided

The policy designates the Jodhpur-Pali-Marwar and Kankani industrial areas as priority corridors with fast-track clearances and land allotment. Under the new policy, key industrial zones, including Jodhpur-Pali-Marwar and Kankani, will be developed as Priority Semiconductor Corridors, and other suitable locations may also be notified.

The policy places special emphasis on attracting investments in Outsourced Semiconductor Assembly and Test (OSAT) and Assembly, Testing, Marking and Packaging (ATMP) segments, along with sensors and related electronics manufacturing. It also aims to strengthen the fabless semiconductor design ecosystem in the state.

Who Decided It, and When

Coverage of this decision shows two distinct moments. On February 4, 2026, the Rajasthan government announced the Rajasthan Semiconductor Policy aimed at positioning the state as a leading hub for semiconductor manufacturing and allied sectors.

Roughly seven weeks later, the formal policy document was released. On March 24, 2026, the Rajasthan government unveiled the document for "Rajasthan Semiconductor Policy-2026." The government of Rajasthan on March 24, 2026, unveiled a semiconductor policy aimed at boosting investment, employment, and technological innovation in the state. This site treats February 4, 2026 as the initial announcement and March 24, 2026 as the date the full policy document was published — both are confirmed by contemporary reporting.

Operative Details: Corridors, Support and Incentives

Corridor-level support. These corridors will offer fast-track land allotment, coordinated utility support, and single-window clearances to facilitate quick project execution and investor confidence. To support semiconductor projects, the state government will ensure an uninterrupted power and water supply, along with streamlined regulatory approvals.

Fiscal incentives (Semiconductor Manufacturing Package). These include 100 per cent exemption on electricity duty for seven years, 75 per cent exemption on stamp duty and land conversion charges, and 25 per cent reimbursement of such costs. Additionally, industries will benefit from a grant equivalent to 60 per cent of the capital subsidy approved under the India Semiconductor Mission, along with a five per cent interest subvention on term loans to promote capital investment.

Environmental incentives. Eligible industries will receive 50 per cent reimbursement of expenditure on environmental protection measures, 100 per cent electricity duty exemption for seven years for projects using captive renewable energy, and a 50 per cent concession on consent fees under the Rajasthan Green Rating System.

Application route and governance. Investors will be required to apply through the RajNivesh portal for setting up semiconductor units in Rajasthan. To ensure effective implementation, two dedicated bodies — the State Level Sanctioning Committee (SLSC) and the State Empowered Committee — will be constituted. The Department of Industries and Commerce will act as the nodal agency for policy execution and coordination.

Why Jodhpur-Pali-Marwar Was Named

JPMIA is not a new site — it is an existing National Industrial Corridor Development Corporation (NICDC) node under the Delhi-Mumbai Industrial Corridor. It is strategically located between Jodhpur and Pali, Rajasthan, with easy access to NH-62 and SH-64, and the site is 60 km from Marwar Junction on the Dedicated Freight Corridor and 30 km from Jodhpur Railway Station and the Jodhpur International Airport. Environmental Clearance has already been obtained from the MoEF&CC, and with 100% land in possession of the state government, JPMIA offers an investment potential of ₹7,500 crore.

Ground-level infrastructure work is already under way separately from the semiconductor policy. A RIICO–NICDC partnership is building JPMIA on an EPC model at a cost of ₹465 crore, with 640 hectares to be developed in the first stage. More recently, RIICO Managing Director and RIDCO CEO Suresh Ola confirmed that approximately 1,186 acres of land are available for acquisition in Phase-1, and RIDCO had already issued work orders worth ₹370 crore in December 2025, with on-ground execution progressing rapidly. The semiconductor-corridor tag adds a sector-specific fast-track layer on top of this existing land and infrastructure programme rather than starting a new township from scratch.

Practical Effect: What Changes on the Ground

The decision does not itself allot land to any named company or fix a rate schedule for JPMIA plots. Its practical effect is procedural and fiscal:

What this decision does not mean: it is a designation of eligibility and fast-track status, not confirmation of a semiconductor fab, OSAT or ATMP facility physically operating in JPMIA. As of mid-2026, Rajasthan's first operational semiconductor unit is elsewhere in the state. The new semiconductor ATMP/OSAT facility was inaugurated on May 15, 2026 at Bhiwadi, operated by Sahasra Semiconductors, an Indian semiconductor packaging and electronics manufacturer. No comparable unit has been reported for Jodhpur-Pali-Marwar or Kankani as of this writing.

National Context

The state move is timed to a larger central push. The India Semiconductor Mission, launched in 2021, received a significant boost in the recent Union Budget with an allocation of Rs 40,000 crore for Mission 2.0. As of May 18, 2026, the central government has approved 13 semiconductor projects across seven states under ISM and SPECS. Rajasthan's designation of JPMIA and Kankani as priority corridors is intended to position the state to compete for a share of this pipeline as further ISM/SPECS-linked projects are approved.

Frequently asked questions

What exactly was decided for Jodhpur-Pali-Marwar?

The Rajasthan government's new semiconductor policy declared the Jodhpur-Pali-Marwar (JPMIA) and Kankani industrial areas as Priority Semiconductor Corridors, entitling qualifying projects there to fast-track land allotment, coordinated utilities and single-window clearances.

Which body made this decision, and when?

The Government of Rajasthan, through its Chief Minister's Office and Department of Industries and Commerce, first announced the policy on February 4, 2026, and formally unveiled the full policy document, the Rajasthan Semiconductor Policy-2026, on March 24, 2026.

Has a semiconductor factory actually been approved for JPMIA?

Not as of this writing. The corridor designation makes JPMIA eligible for fast-track treatment, but Rajasthan's first operational semiconductor unit — an ATMP/OSAT facility run by Sahasra Semiconductors — was inaugurated at Bhiwadi on May 15, 2026, not in Jodhpur-Pali-Marwar.

What incentives can a semiconductor investor claim under this policy?

The Semiconductor Manufacturing Package includes a 100% electricity duty exemption for seven years, 75% exemption on stamp duty and land conversion charges (with 25% reimbursement), a grant equal to 60% of the capital subsidy approved under the India Semiconductor Mission, and a 5% interest subvention on term loans, among other environmental and green-energy concessions.

How does this relate to the existing JPMIA industrial township being built by RIICO and NICDC?

JPMIA already exists as an NICDC-backed DMIC node between Jodhpur and Pali, with land in state possession, environmental clearance obtained, and Phase-1 infrastructure works under way through a RIICO-NICDC EPC partnership. The semiconductor corridor tag layers sector-specific fast-track clearances and incentives on top of this existing project rather than creating a new site.

How does an investor apply for semiconductor-corridor benefits?

Investors are required to apply through the state's RajNivesh portal, with proposals routed through the Department of Industries and Commerce as nodal agency and reviewed by the State Level Sanctioning Committee and State Empowered Committee.

Sources

Interested in Jodhpur-Pali Industrial Smart City?

Register once — get informed when projects, plot schemes or launches open up here.