50% Incentive in Semiconductor Manufacturing Approved by Centre
The Cabinet has also approved a National Logistics Policy.
India’s Union Cabinet has recently given its nod to 50 percent financial incentives for manufacturing of semiconductor fabs across technology nodes as well as for compound semiconductors, packaging, and other chip facilities.
Earlier, the government had announced 30-50 percent incentives for different categories.
However, the incentive has now been kept flat at 50 percent for all categories. Also, so far, the incentive was for 65 nm size, but now this restriction has been removed and all sizes will be covered.
Thakur said due to supply-chain disruption, many countries have announced financial incentives to companies for semiconductor manufacturing. Therefore, he said, the government has tweaked the existing scheme to attract companies.
In December 2021, the Centre announced Rs 76000 crore for the development of the semiconductors and display manufacturing ecosystem in India.
The Cabinet has also approved the Production Linked Incentive (PLI) Scheme on ‘National program on High-Efficiency Solar PV Modules’ for achieving manufacturing capacity of Giga Watt (GW) scale in High-Efficiency Solar PV Modules: Union Minister Anurag Thakur
A provision of Rs 19,500 crore has been made for achieving the manufacturing capacity of Giga Watt scale under PLI Scheme (Tranche II).
With this, the government aims to create an ecosystem for manufacturing high-efficiency Solar PV Modules, Thakur said.
The Cabinet has also approved a National Logistics Policy.
The minister said the scheme will introduce ULIP, standardization, monitoring framework, and skill development for greater efficiency in logistics services. The target is to improve the Logistics Performance Index ranking, and be among the top 25 countries by 2030, Thakur added.
