Shardul Amarchand Mangaldas & Co. advised India Semiconductor Mission (“ISM”) and IFCI Limited, in relation to negotiating and finalising the Fiscal Support Agreement with Tata Semiconductor Manufacturing Private Limited (“TSMPL”), a wholly-owned subsidiary of Tata Electronics Private Limited (“TEPL”) under the modified scheme for the establishment of semiconductor fabs in India.
The fiscal support agreement was signed on 5 March 2025. The TSMPL transaction is valued at INR 91,000 crore, of which ISM will provide 50% of the eligible project cost as fiscal support, thereby, reflecting the Indian Government’s commitment to strengthening the domestic semiconductor ecosystem.
ISM has executed a fiscal support agreement with TSMPL and TEPL for an amount of INR 33,978 crore for setting up of India’s first commercial semiconductor fab facility in Dholera, Gujarat. This is the first ever fiscal support agreement that has been entered into by the Government of India under the modified scheme to further its vision of positioning the country as a global hub for semiconductor manufacturing. SAM & Co. played a pivotal role in structuring the agreement, safeguarding the interests of the government and ensuring compliance with law and the scheme-guidelines.
The SAM & Co. transaction team was led by Anurag Dwivedi, Partner; Shruti Paras, Principal Associate; and Amogh Mittal, Associate
TSMPL and TEPL were advised by Trilegal on the legal aspects.
