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‘80% funds allocated for semiconductor manufacturing scheme remain unused’

Updated - November 07, 2023 09:48 pm IST - NEW DELHI

$8 billion of $10 billion allocated by the Union government to encourage domestic production of semiconductors are unsubscribed, says top Industry Ministry official

About $8 billion of the $10 billion allocated by the Union government for the production of semiconductors under the production-linked incentive (PLI) scheme remains untapped, a top Industry Ministry official said on Tuesday.

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Urging Korean investors, who have invested $5.6 billion in India since April 2000, to use the semiconductor PLI along with upcoming opportunities for investments in battery storage solutions, Department for Promotion of Industry and Internal Trade Secretary Rajesh Kumar Singh said that India and Korea must aim to enhance bilateral trade to $50 billion by 2030.

“India is trying to create a transition to a much stronger manufacturing base through schemes like the PLI under which over $26 billion is being provided as incentive in 14 sectors of the economy. In high tech areas like the Semiconductor Mission, we are also providing an incentive of over $10 billion to encourage semiconductor makers to manufacture in India. There are opportunities for Korean companies, where almost $8 billion out of that $10 billion remain unsubscribed,” Mr. Singh said.

“We also have an important bid opening soon for over 20 gigawatt hours of storage and mobility battery capacity in India. That’s another area where we hope Korean companies take advantage of these opportunities,” he emphasised.

“I take note of the suggestion that we must upgrade and enhance our CEPA (Comprehensive Economic Partnership Agreement) to further strengthen this relationship,” Mr. Singh said at the India-Korea Business Partnership Forum hosted by the Confederation of Indian Industry and the Korea International Trade Association.

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