Semi - Conductor Detailed Project Plan

Detailed Project Report
For setting up Semiconductor Wafer FAB Facility in India
<NAME OF PRINCIPAL PROMOTER>
<<Date>>
0|Page
Detailed Project Report Template
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© Department of Electronics and Information Technology | Government of India
Table of Contents
Data Sheet ......................................................................................................................................................... 3
General Instructions ..................................................................................................................................... 4
1. Background and Broad Project Rationale.................................................................................... 5
2. Investment Outlay ................................................................................................................................. 6
2.1. Cost of Project and Means of Financing ........................................................................... 6
2.2. Bill of Materials/ Capex Details .......................................................................................... 6
2.3. Technology Fee Details: ......................................................................................................... 7
3. Project Execution Strategy ................................................................................................................ 9
4. Technology Details ............................................................................................................................. 10
5. Project Financials ................................................................................................................................ 11
6. Implementation Details .................................................................................................................... 12
7. Risk Impact Analysis .......................................................................................................................... 13
8. Business Case ........................................................................................................................................ 14
9. Plant Infrastructure Details............................................................................................................. 15
10. Environmental Impact Assessment ......................................................................................... 16
11. Details of Project SPV and Partners in the SPV ................................................................... 17
Appraisal Parameters for Detailed Project Report ......................................................................... 18
2
Data Sheet
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1 Issuance Date 19.3.2014
2 Date of Submission 28.4.2014
3 Submission One original + one copy + 1 soft copy (editable
Documents format) on unencrypted pen-drive (Pen drive to
also include excel version of financial model)
Submission in person only; email, post or any
other mode will not be accepted
4 Addressee for S. K. Marwaha
submission Scientist ‘F’
5 Address for Department of Electronics and Information
Submission Technology (DeitY)
Room 2078-79
Electronics Niketan
6-CGO Complex
New Delhi 110 003
Ph: +91 11 24365940
Email : [email protected]
6 Other instructions Person who shall make the submission should
hold authorization letter from signing authority
At the time of submission, originals of all
documents (copies of which are provided in the
DPR) should be made available, which will be
returned at the same time after verification of
copies.
The Department of Electronics and Information Technology (DeitY), Government of India,

reserves the right to verify any and all information contained in the DPR through
independent means as it may deem fit. It further reserves the right to seek any
documentation or clarification/ details required to complete the appraisal of the DPR.
3
General Instructions
1. A power of attorney from the Board of Directors of the project SPV in favour of
the signing authority (who signs all documents related to the demonstration of
commitment, including this DPR) should be furnished.
2. All financials presented in this DPR should be quoted in INR using a conversion
rate of INR 62.17 for 1 USD. However all costs/capex which are to be incurred in
USD, should also be specified in USD.
3. All pages of the DPR should be initialled by the signing authority of the applicant.
4. The Department of Electronics and Information Technology reserves all rights to
check the veracity of the supporting documents. This includes the right to call for
original documents at any point in the appraisal process.
5. DeitY also reserves the right to ask for clarifications and/or additional
documents/information providing of which within the specified timelines would
be binding on the applicants.
6. All data points used in the DPR should be supported by reliable sources (cited in
footnotes on same page) and copies of the relevant source page be appended to
the document.
7. All assumptions used in the document should be supported by detailed
justification and source for data as applicable.
8. As the submission is covered under the NDA signed between the applicant
parties and DeitY, and therefore confidentiality may not be cited as the reason
for withholding any information required. If so felt required, confidential
information may be enclosed as a separate document and marked as such which
would be handled with additional care (with proper referencing to the relevant
section of the DPR).
4
1. Background and Broad Project Rationale

Suggested Page Length: 5 pages
1) Provide details of the project, including:

a) High level capital outlay
b) Technology proposed
c) Product lines proposed
d) Market segment proposed to be addressed.
2) Write up on how the proposed project will enhance the electronics manufacturing
ecosystem in India.
3) Stakeholder Analysis (including partners, investors, GoI, strategic sectors for India,
semiconductor ecosystem, customers, suppliers and affected population).
4) Plan for CSR, relief and rehabilitation of affected population.
5) Plan for compliance to good governance and ethical corporate practices (this section
has to be accompanied with an undertaking by the authorized signatory of the SPV to
comply with the mentioned plan and other good governance and ethical practices in
the operations and execution of the proposed project).
5
2. Investment Outlay
Suggested Page Length: As required
2.1 Cost of Project and Means of Financing

1) Capital Outlay, Proposed Means of Financing and Capital Phasing
2) Assumptions for Financial Modelling (with summary justification and basis)
3) Details of equity already injected in project SPV (Supporting document to be
provided in the form of auditor’s certificate and/or RoC filing) including breakup by
source
4) Details of Debt structure proposed (Supporting documents in form of In-principle
approval letters from lenders) including breakup by source
5) Growth Capex plan and phasing (with justification and basis).
For the purposes of this DPR the following definition of capex and growth capex shall
apply:
Capex: Any and all investment (which is allowed to be capitalized as per Indian
Accounting Standards) which has been incurred prior to declaration of Commercial
Operation Date (for each phase individually).
Growth Capex: Any and all investment, including maintenance capex (which is allowed to
be capitalized as per Indian Accounting Standards) which has been incurred subsequent to
declaration of Commercial Operation Date (for each phase individually).
Additionally for the purposes of this DPR appraisal, Total Project Cost (TPC) shall be
defined as Capex + Growth Capex (for life of project, i.e. 25 years from CoD of phase I).
2.2 Bill of Materials/ Capex Details

Details of Capex (as admissible under M-SIPS) should be provided (with justification)
under the following heads (sub-heads, as applicable to also be provided):
a) Land and building (civil construction and land development costs) required for
the project
b) Plant, machinery and equipment, including cost of:
i) Erection and commissioning
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ii) Tools, dies, moulds, jigs, fixtures, and parts

iii) Accessories
iv) Components
v) Spares
c) Expenditure on leasing or hire and purchase of plant, machinery and equipment
d) Expenditure on in-house and captive Research and Development including:
i) Software costs and software license fees
ii) Purchase of technology, IPRs, patents, copyrights etc.
e) Utility machines
f) Expenditure on captive power plant (if set-up exclusively to support the FAB)
For the purposes of BoM/ Capex details, equipment/item wise costing should be provided
under the above broad heads and the following supporting document guidelines shall
apply:
a) For all item/equipment with unit cost over USD 10,000 or total cost of over 1% of
TPC (as defined above), quotation to be provided.
b) For all item/equipment with unit cost over USD 1 Million or total cost over 5% of
TPC, at least 3 quotations to be provided.
If the requisite number of quotations for any item (as defined above) is not available, a
detailed item-wise justification should be provided.
For intangible goods (such as Intellectual Property), Valuation Reports can be provided
instead of Quotations.
2.3. Technology Fee Details:

The technology fee proposed (including any other payments, such as Royalty.
Engineering Services Fees etc. to be made to other members of the consortia, as
represented in various communications to GoI so far) should be accompanied with
documentary evidence to justify the same (E.g. Agreement of previous transaction for
transfer of similar/comparable technology to FABs in the recent past). This should
additionally be accompanied with the following:
a) Valuation reports of Intellectual Property proposed to be transferred
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b) Note on cost of manpower required for technology transfer (in sync with
technology transfer plan)
c) Justification of any other cost heads which are payable to either partners
8
3. Project Execution Strategy

1) Institutional Framework (including details of vendors/contractors/partners

identified for major activities) for project design, development and construction
2) Infrastructure details and strategy for securing/ implementing the same:
a) Land
b) Power
c) Water
d) Sewage disposal
e) Effluent Treatment Plant
3) Packaging, procurement and contracting strategy and framework
4) Project management framework and philosophy
5) Cost & Time overrun contingency measures and strategy
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4. Technology Details
1) Details of IP Ownership: List of Intellectual Property proposed to be transferred to

the project SPV (from each technology partner) and documentary evidence of
current ownership of the same.
2) Details of Technology Provider/s
3) IP Status of Technology Being Proposed
4) Valuation of Technology and IP (Along with Valuation Reports)
5) Technology Transfer Agreement (Final, non-conditional agreement, including
performance guarantee clauses as deemed appropriate)
a) IP transfer
b) Knowledge Transfer mechanism (detailed note)
c) Capacity development mechanism
d) Details of process and product technology proposed (with detailed notes on
each)
6) Sources of Product Design proposed
7) R&D Plan and Details (with note on IP proposed to be generated)
8) Detailed Technology Transfer Plan (Supported by technology transfer agreement as
above), including personnel exchange/deputation, facilities and equipment sharing
etc.
Technological Details should be supported by documents where necessary (Example:

Documentary evidence of IP ownership, Technology Transfer Completeness, documentary
evidence of similar transactions in the past etc.). A provision to assess the technology
providers’ facilities via site visits may also be incorporated.
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5. Project Financials
1) Financial Structuring
a) Debt Equity Ratio (including details of various sources of equity, sources of debt
and other funds and sequencing of the same)
b) Treatment of incentives approved
c) Drawdown requirements including split by source
d) Loan schedule and DSCR analysis
2) Loan Ageing
3) Financial Indicators (NPV, EIRR, PIRR, DSCR, PAT, PBT, Breakeven period by Cash
and EBITDA)
4) Financial Structuring including the Incentives as approved by GoI
5) Major Investments and Fund Raisings Planned (With supporting documents for
funds required to be shown for demonstration of commitment)
6) Project Cash flow analysis
7) Taxation schedule (in line with applicable laws and standards)
The applicants are required to include a soft copy (editable excel file) of the financial
model along with the DPR and an undertaking that the same is correct and in line with
accounting standards, company law and taxation laws in India.
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6. Implementation Details
1) Project Phasing (Quarterly activity plan supported by detailed Gantt Charts)

including major milestones
2) Project O&M Planning (including growth capex plans and assumptions)
3) Key Activities by quarter
4) Organization Structure proposed (with details of management team and role of
partners) upto three levels (starting with CEO). Also append the profiles of the
personnel proposed as well as the roles and responsibilities of each.
5) Procurement Details (including phasing, timing and sequencing, apart from overall
procurement strategy)
6) Services and Service Levels proposed with implementation partners and
contractors/ vendors
7) Outsourcing and Contractor details and scope of work envisaged
8) Details of permissions, clearances and fulfilment of other statutory requirements for
the projects, accompanied by a detailed note on plans for fulfilment of each
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7. Risk Impact Analysis

1) Project Financial Viability and Going Concern viability analysis and details
2) Business Sustainability Plan
3) Risk Analysis (financial and business), along with financial impact estimation for top
10 risk factors (upside and downside)
4) Risk Mitigation Plan including costs associated with the individual plans
5) Detailed estimation of risk due to cost or time overruns and mitigation plans for the
same
6) Mitigation plan for Forex exposure risk
7) Technology obsolescence risk assessment and mitigation plan
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8. Business Case
1) Production Plan (with justification)

2) Marketing Plan (Tie ups and Strategies)
3) Product Strategy (technology and demand analysis)
4) Market Feasibility Analysis (especially Strategic Sectors), including marketing mix
proposed (split by domestic and export) and assessment of India market
(government and private procurement)
5) Analysis with respect to strategic sector requirement
a) Aerospace
i) Product lines and applications proposed which may be useful in the sector
ii) Relevant R&D proposed
iii) Process technology proposed which may be relevant to the sector
b) Defence (including weapon systems)
c) Atomic Energy
d) Proposed protocol for participation in the proposed “Trusted Supply Chain for
Microelectronics” of which the proposed FAB would be a part of
i) Proposed mechanism for development of a “Trusted” mechanism
ii) Proposed plan for development of an end-to-end ecosystem
6) Plan to develop and partner with upstream and downstream industries in India
7) Project Benefits Assessment:
a) Social Benefits (Appropriate Calculations including employment direct and
indirect, GDP Multiplier etc.)
b) Cost Benefit Assessment
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9. Plant Infrastructure Details

1) Analysis including availability, requirement, gap analysis and mitigation plan for the
following:
a) Water Supply
b) Power Supply
c) Sewerage
d) Solid Waste Management
e) Effluent Treatment Plant
f) Plant Safety Management, specially precautions against leakage of noxious gases
g) Drainage systems
h) Roads/Urban Transportation
i) Social Infrastructure
j) Logistics (Warehouse etc.)
k) Assembly Line Workflow
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10. Environmental Impact Assessment

1) Legal Framework and Standards

a) Statement of Need
b) Project Location and Scale
c) Project and Activity Descriptions
d) Project Status and Schedule
2) Environment, Impacts, Mitigation, Monitoring, and Risk Assessment
a) Environmental Components
i) Description of the Environment
ii) Environmental Impact Prediction and Evaluation
iii) Mitigation Measures
iv) Monitoring Program
b) Impacts, Mitigation, and Monitoring Summary
i) Mitigated Impacts
ii) Residual Impacts
c) Risk Assessments
i) Hazards and Effects Register
ii) Control of Major Accident Hazards Report
d) Environmental Management Framework
i) Environmental Management Program Objectives
ii) Roles and Responsibilities
iii) Training and Competence
iv) Communication
v) Monitoring and Reporting
vi) Audit and Inspection
3) Project Alternatives
4) Statement of Commitments
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11. Details of Project SPV and Partners in the SPV

Suggested Page Length: as required
1) The following details (supported by relevant documents) should be furnished with

respect to the Special Purpose Vehicle (SPV) to execute the project
a) Registration details with RoC, details of registered office and corporate office etc.
b) Registration with various tax authorities (Service Tax, PAN, Sales Tax etc.)
c) Memorandum of Association
d) Articles of Association
e) Constitution of the Board of Directors (including brief bios of each director, the
roles envisaged for each of them, sitting fee proposed for each and letter of
acceptance from each director) and details of related party directors (executive
directors, and family members/ relatives/ nominees of the promoter group)
f) Details of authorized capital and paid up capital (supported with auditor
certificates)
g) Details of bank accounts maintained for the company
h) Remuneration details for top management
2) The following details (supported by relevant documents) should be furnished for all
partners holding equity stake in the SPV (including members of consortium
proposed thus far in all communication to GoI)
a) Registration details with relevant authority in country of registration, details of
registered office and corporate offices
b) Details of related party firms in business in India
3) Detailed notes on the proposed role of each partner in the project (supported by
legal, binding agreements including performance guarantee clauses and fee
arrangements)
4) Technology fee arrangements to be supported with detailed justification
a) Valuation report for IP
b) Effort estimation basis manpower commitment
c) Documents demonstrating fee for similar projects in the past (justifying fee
levels)
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THIS PAGE DOES NOT FORM PART OF THE DPR TEMPLATE
Appraisal Parameters for Detailed Project Report

1) Review of the overall contents of the DPR and map completeness with regard to the
DPR template/format circulated.
2) Detailed review of all technical, financial and infrastructural details furnished in the
DPR, including but not limited to:
a) Comparison of costs against global benchmarks for similar projects/
components/ equipment and tools.
b) Defining of applicable capex for M-SIPS.
c) Verification of credentials of the vendors/contractors/partners proposed.
d) Review of project plans for suitability and completeness.
e) Suitability of location proposed including seismic zone consideration.
3) Assessment of appropriateness of procurement, contracting and execution strategy
proposed, with a special reference to cost effectiveness.
4) Due diligence of the IP proposed to be sourced from consortia partners and others.
5) Due diligence of the proposed Capex eligible for incentives as approved for the
project.
6) Project viability in terms of NPV and EIRR.
7) Review of the appropriateness of funding structure and sources of funding.
8) Plan for environmental compliances.
9) Detailed legal and tax review of various aspects of the DPR.
10)Review of business plan (including marketing tie ups/plans) and comparison
against consultant’s view of global markets.
11)Capability of the project to meet strategic objectives of the GoI.
12)Framework for penalties for non-compliance with respect to milestones. (based on
industry norms)
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Detailed Project Report

For setting up Semiconductor Wafer FAB Facility in India

<NAME OF PRINCIPAL PROMOTER>

THIS PAGE INTENTIONALLY LEFT BLANK

Sl. No Information Details

The Department of Electronics and Information Technology (DeitY), Government of India,

1. Background and Broad Project Rationale

1) Provide details of the project, including:

2.1 Cost of Project and Means of Financing

2.2 Bill of Materials/ Capex Details

ii) Tools, dies, moulds, jigs, fixtures, and parts

2.3. Technology Fee Details:

3. Project Execution Strategy

1) Institutional Framework (including details of vendors/contractors/partners

1) Details of IP Ownership: List of Intellectual Property proposed to be transferred to

Technological Details should be supported by documents where necessary (Example:

1) Project Phasing (Quarterly activity plan supported by detailed Gantt Charts)

7. Risk Impact Analysis

1) Production Plan (with justification)

9. Plant Infrastructure Details

10. Environmental Impact Assessment

1) Legal Framework and Standards

11. Details of Project SPV and Partners in the SPV

1) The following details (supported by relevant documents) should be furnished with

THIS PAGE DOES NOT FORM PART OF THE DPR TEMPLATE

Appraisal Parameters for Detailed Project Report

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