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 for 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 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 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.

Recently, the shares of both CG Power and Industrial Solutions rose enough to hit about 20 percent of the upper circuit at Rs.469.35 apiece in this week’s trading session.

The surge could be thanks to the company’s shift into the semiconductor business, which has also filed an application with MEITY to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility.

It also requested for a subsidy for the project under the Modified Scheme to help establish Compound Semiconductors, Silicon Photonics, Sensors Fab, Discrete Semiconductors Fab, and Semiconductor Assembly, Testing, Marking, and Packaging (ATMP)/Outsourced Semiconductor Assembly and Test (OSAT) facilities in India.

Moreover, the company’s shares have had a good season this year with the mark of a return of 77 percent as they surged from Rs.265 apiece to Rs.469.35. Stock also delivered robust returns for the past few years following that.