Madhya Pradesh Draws ₹5,800 Crore in Semiconductor Proposals at Indore Summit

Madhya Pradesh received investment proposals worth about ₹5,800 crore in the semiconductor and technology sectors at a summit in Indore on Friday, with the state expecting the projects to create more than 10,000 jobs. Chief Minister Mohan Yadav announced the figures at an event held ahead of the Global Investors Summit scheduled for January 2027.

The headline proposals came from three companies. Una Ecosystems put forward ₹2,000 crore for an electronics system design and manufacturing (ESDM) facility projected to employ 2,000 people. Spintronics AI Semiconductors proposed ₹1,800 crore across two phases, and Lalwala Industries offered ₹1,200 crore for semiconductor manufacturing and chip design.

Which smaller companies joined the list?

Meetings between the chief minister and company representatives produced five further proposals:

• Dhanush Healthcare Systems — ₹400 crore, around 500 jobs
• Beyond Studios — ₹110 crore, around 360 jobs
• Indusilica Semiconductors — ₹100 crore, around 150 jobs
• Nanodrites Technology — ₹65 crore, around 140 jobs
• Truechip Solutions — ₹10 crore, around 50 jobs

These are proposals, not committed spending. None of the figures carries a confirmed timeline or capacity number, so the total represents intent rather than booked capital expenditure.

What land has the state already allocated?

Separately, Madhya Pradesh issued letters of intent for land allocation to five companies, covering proposed investments of ₹9,625 crore and more than 4,450 direct jobs. Cytech RE leads the group with a plan to invest ₹6,415 crore in a 50-megawatt hyperscale data centre at Ganga Malanpur in Gwalior. Auriga IT Solutions proposed a ₹500-crore global capability centre in Indore, expected to employ 3,500 people. Meena Circuits proposed ₹400 crore for an ESDM unit, and Kaynes Electronics plans ₹310 crore for an electronics manufacturing unit at Badwai IT Park in Bhopal, with around 950 jobs expected.

The Indore summit follows a larger single deal signed earlier. On July 22, 2026, Paras Semiconductors, a subsidiary of Paras Defence and Space Technologies, signed a memorandum of understanding with the state government for approximately ₹6,200 crore to build a greenfield advanced semiconductor packaging and testing (OSAT) facility in the Indore-Ujjain region. That MoU remains the anchor project for the state's semiconductor push.

How does the state intend to compete?

Yadav said semiconductor manufacturing, electronics manufacturing, advanced packaging and chip design would take priority in the Indore-Ujjain Economic Corridor. He also announced plans for a Semiconductor Centre of Excellence and a second centre focused on photonics and quantum technologies. The chief minister said the state has received proposals worth about ₹34 lakh crore through the Global Investors Summit 2025 and other initiatives, and that more than 30 per cent of them have reached the implementation stage.

What incentives does the 2025 policy offer?

Ashok Chandak, president of SEMI India and IESA, told Business Standard that the Madhya Pradesh Semiconductor Policy 2025 could help the state attract investment by combining competitive fiscal incentives with a supportive ecosystem for semiconductor design and manufacturing. The policy's core terms are specific:

• Capital investment support equal to 25 per cent of eligible capital expenditure, or 50 per cent of central government incentives, whichever is lower
• For fabless semiconductor and IP companies, reimbursement of 10 per cent or 25 per cent of eligible development expenditure, depending on eligibility under the central Design Linked Incentive scheme, capped at ₹25 crore per project
• Reimbursement of eligible stamp duty and registration charges
• An interest subsidy of 6 per cent up to ₹10 crore over five years
• A power tariff subsidy of ₹2 per unit for the first 10 years of operation

The incentive structure matters because it stacks state money on top of central schemes, lowering the effective capital cost for projects that qualify. Whether the ₹5,800 crore of proposals converts into fabs, packaging lines and design houses will depend on how quickly the state issues approvals and how the OSAT anchor project progresses toward construction.