SAM advises ISM and IFCI Limited on first ever fiscal support agreement for setting up semiconductor fabrication facilities in Gujarat

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.  

About Shardul Amarchand Mangaldas & Co:
Shardul Amarchand Mangaldas & Co., founded on a century of legal achievements, is one of India’s leading full-service law firms. The Firm’s mission is to enable business by providing solutions as trusted advisers through excellence, responsiveness, innovation, and collaboration. SAM & Co. is known globally for its exceptional practices in mergers & acquisitions, private equity, competition law, insolvency & bankruptcy, dispute resolution, international commercial arbitration, capital markets, banking & finance, tax, intellectual property, data protection and data privacy, technology law and projects & infrastructure.

The Firm has a pan-India presence and has been at the helm of major headline transactions and litigations in all sectors, besides advising major multinational corporates on their entry into the Indian market and their business strategy. Currently, the Firm has over 829 lawyers including 177 Partners, offering legal services through its offices in New Delhi, Mumbai, Gurugram, Ahmedabad, Kolkata, Bengaluru, and Chennai.