MeITY tweaks PLI scheme for semiconductor making, approvals to require Cabinet nod
1 min read 10 Jun 2023, 10:46 PM ISTEarlier, the MeITY Secretary was responsible for granting the approvals for applications valued up to ₹100 crore, while those exceeding this threshold were evaluated by the Union Minister for Electronics and IT.
PremiumThe approval for establishing the compound semiconductors and display fabs assembly and test units, under the Ministry of Electronics and IT (MeITY)'s production-linked incentive (PLI) scheme, will now be issued by the Cabinet, according to government notification released on June 10, said media reports.
Earlier, the MeITY Secretary was responsible for granting the approvals for applications valued up to ₹100 crore, while those exceeding this threshold were evaluated by the Union Minister for Electronics and IT.
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However, the latest notification from the MeITY has eliminated this categorisation, and has designated the Union Cabinet as the sole authority responsible for approving applications under the PLI scheme.
The amendments moved via the latest MeITY notification has removed the above categorisation, and makes the Union Cabinet the sole authority to grant approval for applications under the PLI scheme, said the reports.
The PLI scheme - 'Modified Programme for Semiconductors and Display Fab Ecosystem' - was announced in December 2021 with a total outlay of ₹76,000 crore. It was changed in September last year to attract the global investors with more incentive support.
The PLI scheme announced in December 2021 had offered varying degree of fiscal support to different categories for development of semiconductors and display manufacturing ecosystem in India.
These ranged from 30-50 per cent. This was made uniform in September 2022, as the government now funds 50 per cent of the project cost across all technology nodes for setting up of semiconductor fabs, including not just cutting-edge computing chips but also those used in power, telecom and automotive sectors.
Minister of State for IT Rajeev Chandrasekhar had said the total outlay for the package will remain the same, but harmonisation of incentives to 50 per cent will make the semiconductor policy "extremely competitive" and attract investment across spectrum of opportunities, namely silicon and compound fabs, packaging units, display fabs, and design and innovation ecosystem.
Global companies, he said, are examining exploring India as a viable investment destination for semiconductors. India is positioning itself as among the most attractive destination in Asia for "all things electronics and semiconductors", and the government is "confident" that investments of almost ₹2 lakh crore will come in over next two years.
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