CG Power and Industrial Solutions from Murugappa Group are setting up an Outsourced Semiconductor Assembly and Test (OSAT) facility in India with an application signed off by the Ministry of Electronics & Information Technology (MeitY).
Both companies are believed to have poured in about Rs 6,592 crore ($791 million) in the course of five years, and the same is expected to be invested by subsidy, JV partners’ equity contribution and debt, as required.
Likewise, the company has already sought a subsidy and is awaiting approval.
With regards to the subsidy and the project, the company revealed plans for a joint venture partnership involving technology providers or anchor customers. Currently, the development around it is already under discussion.
Last month, CG Power and Industrial Solutions agreed on an investment of Rs 347 crore, which also meant for its ongoing project, eventually hoping for a capacity expansion of its various units.
CG Power plans to expand its manufacturing capacity located at its Switchgears Division complex in Nashik for instrument transformers and condenser bushings, medium voltage switchgear, and GIS units by investing about Rs 155 crore.
Additionally, it plans to expand its manufacturing capacity of large industrial machine (LIM) units at Mandideep, Bhopal. With the expansion, the company aims to increase the capacity of LIM up to 1,728 units per annum from 1,002 units per annum now.
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