Trading Symbol

PARAS (NSE)

Summary of Disclosure

Paras Defence and Space Technologies Limited, through its subsidiary Paras Semiconductors, has signed a Memorandum of Understanding (MoU) with the Government of Madhya Pradesh on July 22, 2026.

The key terms of the MoU are:

  • Investment: A proposed investment of ₹6,200 Crore to establish an advanced semiconductor packaging OSAT (Outsourced Semiconductor Assembly and Test) facility.
  • Land Allocation: The Government of Madhya Pradesh has allotted fifty acres of land for the proposed facility. The land is located on the Ujjain–Indore Corridor.
  • Business Focus: The facility will focus on building advanced semiconductor capabilities for strategic and high-performance sensor applications. The near-term focus is on developing semiconductor devices for sensor technologies, optical and optronic systems. The facility also offers potential for future expansion into AI chips and other advanced semiconductor technologies.
  • Strategic Rationale: The project aims to strengthen India's semiconductor manufacturing ecosystem, accelerate the development of semiconductor devices for strategic applications, generate significant employment opportunities, catalyse the growth of a robust semiconductor supplier ecosystem, and reinforce Madhya Pradesh's position as a destination for advanced manufacturing.

The project aligns with the Government of Madhya Pradesh's Semiconductor Policy 2025. The Ujjain–Indore Corridor is described as a key technology and manufacturing corridor for the state.

Management Commentary

Munjal Sharad Shah, Managing Director: Commented that the MoU is a significant milestone for building indigenous semiconductor capabilities. He acknowledged the state's progressive vision, industry-friendly policies, and commitment to creating an enabling ecosystem.

Santosh Kumar, Chief Executive Officer, Paras Semiconductor: Stated that the project combines world-class infrastructure with a progressive policy environment. The goal is to develop semiconductor devices for strategic applications and contribute to India's technological self-reliance.

Dr. Mohan Yadav, Hon'ble Chief Minister of Madhya Pradesh: Welcomed the investment, stating that Madhya Pradesh is emerging as a preferred destination for high-technology manufacturing and is committed to providing responsive governance and world-class infrastructure for such investments.

Financial and Operational Impact

The disclosure states the project is expected to create lasting economic value through employment generation, ecosystem development, and innovation-led industrial growth. The exact financial impact on Paras Defence and Space Technologies Limited is not quantified in this disclosure.