Bhopal: Madhya Pradesh is positioning itself for a larger role in India’s semiconductor supply chain, with Guna set to attract a proposed ₹1,260 crore investment for a semiconductor-grade silane gas plant by Inox Air Products Limited.
The proposal was discussed during Madhya Pradesh Chief Minister Dr. Mohan Yadav’s interaction with industry leaders at the ‘Interactive Session on Investment Opportunities in Madhya Pradesh’ in Mumbai. Dr. Yadav met Inox Air Products Managing Director Siddharth Jain to discuss investments in industrial gases, semiconductor-related manufacturing and the infrastructure required to support such projects.
The Guna project is expected to strengthen domestic production of high-purity gases used by the semiconductor industry. Production has been proposed from April 2029, with the project likely to generate more than 320 local employment opportunities and support import substitution worth around ₹350 crore.
Guna Set for ₹1,260 Crore Semiconductor-Grade Silane Plant
Inox Air Products has proposed setting up what has been described as India’s first ultra-high-purity semiconductor-grade silane gas plant in Guna.
Silane is an important specialty gas used in semiconductor manufacturing. Developing domestic production capacity can help reduce dependence on imports while supporting the wider manufacturing ecosystem required for advanced electronics and semiconductor production.
The proposed ₹1,260 crore plant is expected to create more than 320 local jobs. The project could also contribute around ₹350 crore in import substitution, giving Madhya Pradesh an opportunity to capture a higher-value segment of the industrial supply chain.
From the state’s development perspective, the investment is significant because it links Guna not only with industrial manufacturing but also with a technology-intensive sector that India is seeking to expand.
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Another ₹1,200 Crore Proposal Under Discussion
The discussion in Mumbai also covered another potential investment of around ₹1,200 crore for producing specialty gases required by the semiconductor industry using the latest technology.
The proposed facility would require around 40 acres of land. Availability of natural gas and supply through the GAIL network emerged as important requirements for the project.
The proposed technology could enable production of related specialty gases in India for the first time, potentially strengthening the domestic supply chain for semiconductor manufacturing.
Together, the two proposals represent a potential investment opportunity of around ₹2,460 crore in high-technology industrial gas production in Madhya Pradesh, although the second proposal remains under discussion.
Infrastructure and Investment Support Take Centre Stage
For projects of this scale, industrial infrastructure and reliable utilities are critical. The meeting therefore also focused on the facilities and incentives that can support investment in Madhya Pradesh.
The discussions covered financial assistance, interest subsidies, electricity support of ₹2 per unit, exemption from electricity duty, a customised CCIP Mega Package, concessional land and time-bound approvals.
The state also discussed ensuring access to essential infrastructure such as:
- Water and electricity
- Natural gas supply
- Road connectivity
- Industrial land
- Faster regulatory approvals
These facilities could play an important role in making high-value manufacturing projects more viable and competitive.
Inox Air Products Has a Growing Presence in Madhya Pradesh
Inox Air Products has operated in Indore and Bhopal since 2000. In June 2023, the company established Madhya Pradesh’s first liquid medical oxygen plant.
The company currently employs more than 360 people in Madhya Pradesh and is also working on additional industrial gas projects in the state.
These include new on-site gas production units for JK Tyre and TACC, along with the development of a solar-linked nitrogen pipeline in Narmadapuram.
The expansion indicates that the proposed Guna investment would build on an existing industrial presence rather than represent an entirely new entry into the state.
Company Brings Industrial Gas Expertise to Semiconductor Sector
Inox Air Products has an annual turnover of around ₹3,034 crore and operates across industrial, medical and electronic gases.
The company functions as a 50:50 joint venture with US-based Air Products and Chemicals. It supplies gases such as oxygen and nitrogen and operates 57 plants across India.
Its cryogenic tanker fleet serves more than 2,600 customers, giving the company an established distribution and industrial-gas infrastructure network.
This existing expertise could support the development of specialised gas manufacturing capacity for India’s growing semiconductor ecosystem.
What the Investment Means for Madhya Pradesh
For Madhya Pradesh, the proposed Guna plant goes beyond a single industrial project. Semiconductor manufacturing requires a broad network of suppliers, specialised materials, gases, logistics and technical services.
Building this ecosystem within the state can create opportunities for local businesses and skilled workers while reducing dependence on imported industrial inputs.
The Guna project could also help diversify the industrial base of the region by bringing a technology-intensive manufacturing activity that requires specialised skills and infrastructure.
The proposed investments further align with Madhya Pradesh’s effort to attract industries linked to emerging technologies, advanced manufacturing and high-value employment.
If the projects move ahead as proposed, Guna and other parts of Madhya Pradesh could gain a stronger position in the supply chain supporting India’s semiconductor ambitions. For the state, the larger opportunity lies in converting individual investments into an integrated industrial ecosystem that creates jobs, supports local businesses and strengthens domestic manufacturing capacity.
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