The Rajasthan Cabinet, under Chief Minister Bhajan Lal Sharma, approved the state's first-ever Semiconductor Policy 2026 on January 21, 2026, with the state government coming out with the policy in March 2026. The policy positions Rajasthan as a major hub for semiconductor manufacturing, design, packaging, and allied electronics. Key highlights include: Jodhpur-Pali-Marwar and Kankani designated as Priority Semiconductor Corridors with fast-track land allotment, coordinated utilities, and single-window clearance; financial incentives including a grant equivalent to 60% of capital subsidy approved under the India Semiconductor Mission; 5% interest subvention on term loans; 50% reimbursement for environmental protection expenditure; 100% electricity duty exemption for seven years for units using captive renewable energy; and 50% concession on consent fees under the Rajasthan Green Rating System. The policy targets investment in OSAT (Outsourced Semiconductor Assembly and Test), ATMP (Assembly, Testing, Marking and Packaging), and sensor manufacturing. Two new bodies — the State Level Sanctioning Committee and the State Empowered Committee — will oversee implementation. The Department of Industries and Commerce is the nodal agency. The policy complements the India Semiconductor Mission (ISM) under MeitY and aligns with India's goal of building a domestic semiconductor ecosystem. The Jodhpur corridor's proximity to IIT Jodhpur and IIT Jodhpur's Centre for Excellence in AI provides a research-industry synergy. The policy is expected to generate significant employment for Rajasthan's youth and reduce India's dependence on semiconductor imports currently valued at over $30 billion annually.
Rajasthan Cabinet Approves First-Ever Semiconductor Policy 2026: Jodhpur-Pali-Marwar Declared Priority Corridor; 60% Capital Subsidy Linked to India Semiconductor Mission
The Rajasthan Cabinet, under Chief Minister Bhajan Lal Sharma, approved the state's first-ever Semiconductor Policy 2026 on January 21, 2026, with the state government coming out with the policy in March 2026. The policy positions Rajasthan as a major hub for semiconductor manufacturing, design, packaging, and allied electronics. Key highlights include: Jodhpur-Pali-Marwar and Kankani designated as Priority Semiconductor Corridors with fast-track land allotment, coordinated utilities, and single-window clearance; financial incentives including a grant equivalent to 60% of capital subsidy approved under the India Semiconductor Mission; 5% interest subvention on term loans; 50% reimbursement for environmental protection expenditure; 100% electricity duty exemption for seven years for units using captive renewable energy; and 50% concession on consent fees under the Rajasthan Green Rating System. The policy targets investment in OSAT (Outsourced Semiconductor Assembly and Test), ATMP (Assembly, Testing, Marking and Packaging), and sensor manufacturing. Two new bodies — the State Level Sanctioning Committee and the State Empowered Committee — will oversee implementation. The Department of Industries and Commerce is the nodal agency. The policy complements the India Semiconductor Mission (ISM) under MeitY and aligns with India's goal of building a domestic semiconductor ecosystem. The Jodhpur corridor's proximity to IIT Jodhpur and IIT Jodhpur's Centre for Excellence in AI provides a research-industry synergy. The policy is expected to generate significant employment for Rajasthan's youth and reduce India's dependence on semiconductor imports currently valued at over $30 billion annually.
Key facts
- Rajasthan Cabinet approved the state's first-ever Semiconductor Policy 2026 on January 21.
- Jodhpur-Pali-Marwar declared Priority Semiconductor Corridor with fast-track land allotment.
- Financial incentives include 60% capital subsidy linked to India Semiconductor Mission.
- Policy targets OSAT, ATMP, and sensor manufacturing investments.
- 100% electricity duty exemption for seven years for units using captive renewable energy.
- IIT Jodhpur's proximity provides research-industry synergy for the semiconductor corridor.
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Practice MCQ from this story
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What capital subsidy incentive does the Rajasthan Semiconductor Policy 2026 offer, linked to the India Semiconductor Mission?
The policy offers a grant equivalent to 60% of the capital subsidy approved under the India Semiconductor Mission.
Source: DQ India / Inshorts / New Kerala / APAC News Network / Newsdrum
Frequently asked questions
When did the Rajasthan Cabinet approve the Semiconductor Policy 2026?
The Rajasthan Cabinet approved the state's first-ever Semiconductor Policy 2026 on January 21, 2026, under Chief Minister Bhajan Lal Sharma.
Which corridor has been designated as the Priority Semiconductor Corridor under Rajasthan's Semiconductor Policy 2026?
Jodhpur-Pali-Marwar (along with Kankani) has been designated as the Priority Semiconductor Corridor, offering fast-track land allotment, coordinated utilities, and single-window clearance.
What is the capital subsidy offered under Rajasthan's Semiconductor Policy 2026?
The policy provides a capital subsidy equivalent to 60% of the amount approved under the India Semiconductor Mission, making it financially competitive for investors.
What electricity duty concession is available under Rajasthan's Semiconductor Policy 2026?
Units using captive renewable energy are eligible for 100% electricity duty exemption for seven years under the policy.
Which institution near the Jodhpur-Pali-Marwar corridor provides research-industry synergy for semiconductor development?
IIT Jodhpur's proximity to the corridor provides research-industry synergy, supporting semiconductor manufacturing, design, and allied electronics development.
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