Cabinet likely to approve Rs 25,000 cr scheme for semiconductor manufacturing

Union Cabinet is expected to approve a Rs 25,000-crore scheme for semiconductor manufacturing, reported ET NOW on Wednesday.

The cabinet meeting is underway and the announcement is likely to be made on Wednesday afternoon.

The government has been keen on bringing semiconductors under the production-linked incentive (PLI) scheme. In May, finance minister Nirmala Sitharaman had underlined the government's priority to incentivise and facilitate investments in India through PLI schemes, which are being expanded beyond the initial 14 sectors to include semiconductors and solar components.

Inviting Japanese investors to invest in India, the minister said the country had relaxed various restrictions to ensure greater ease of doing business and draw more investments. Sitharaman interacted with business leaders on the theme of "Rising Investment Opportunities: Destination India."

However, Reuters reported on Tuesday that as of now PLI scheme for semiconductors is not in the pipeline.

The government had initially earmarked incentives worth Rs 1.97 lakh crore under various PLI schemes over a five-year period to spur domestic manufacturing.