According to Union Minister Anurag Thakur, the Union Cabinet has granted 50% financial incentives for the production of semiconductor fabs across technological nodes as well as for compound semiconductors, packaging, and other chip facilities.

Earlier, the government had announced 30-50 per cent incentives for different categories. However, the incentive has now been kept flat at 50 per cent 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 programme 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 of high-efficiency Solar PV Modules, Thakur said.