PLI incentives of around Rs 98,000 crore are approved for allied sectorsThe governmentapproved a production linked incentive (PLI) scheme for semiconductor and display board production in the country, said Anurag Thakur, Information and Broadcasting (I-B) Minister today during the Cabinet meeting.
Prime Minister Narendra Modi-chaired Union Cabinet approved the PLI scheme that involves an outlay of Rs 76,000 crore insemiconductor production over the next 5-6 years.
As part of the scheme, the incentives include every part of the supply chain ranging fromelectronic components, sub-assemblies, to finished goods.The incentive support of around Rs 55,392 crore isapproved under PLI for the larges scale electronics manufacturing, PLI for IT hardware, SPECS scheme, and modified electronics manufacturing clusters (EMC 2.0) scheme, according to the statement.Additionally, PLI incentives of around Rs 98,000 crore are approved for allied sectors comprising of ACC battery, auto components, telecom - networking products, solar PV modules, and white goods.
Overall, the governmenthas committed monetary support ofRs.
2,30,000 croreto position India as a global hub for electronics manufacturing with semiconductors as the foundation, according to the Cabinet statement today.Telecom and IT Minister Ashwini Vaishnaw said the decision will help design, fabrication, packing, and testing of the microchips and develop a complete ecosystem.
The scheme aims to provide incentives to companiesengaged in silicon semiconductor fabs, display fabs, semiconductor packaging, semiconductor design, among others.India -the world's second-biggest smartphone maker, has announced the plan at a time when automakers and tech companies are strugglingdue to a global semiconductor shortage.Tata Group is also venturing into the business and is in talks with three states to invest up to $300 million to set up a semiconductor assembly and test unit, according to news agency Reuters.