New Delhi

Production Linked Incentive (PLI) Scheme for semi-conductors a biggest measure under Aatmnirbhar Bharat, stated Indian Electrical & Electronics Manufacturer’s Association (IEEMA), while welcoming the Union Cabinet decision to approve the PLI Scheme - with an outlay of Rs 760 billion (about $ 10 billion) - for the development of sustainable semiconductor and display ecosystem in the country. 

“This is a huge positive step for the Indian electrical & electronics industry. I believe this will accelerate our indigenization efforts and enable global competitiveness of our industry to ramp-up exports of finished products,” said Vipul Ray, President, Indian Electrical & Electronics Manufacturer’s Association (IEEMA). He hailed it as one of the most significant moves towards realising the vision of AatmNirbhar Bharat; one which has come at an opportune time to tackle the global shortage of Semiconductors. “It should help streamline the disrupted global supply chain and help mitigate the cyber security risks”, he added.

“Semiconductors are widely used in manufacturing of many electrical equipment, viz: Smart Energy Meters, Control & Automation products, Testing & Measurement Instruments and switching products, to name a few. Electrical and allied industry will be hugely benefitted by smooth & competitive supply of Semiconductors within the country once FAB facilities are established. This will also enhance our export competitiveness” stated Vipul Ray. 

Manufacturing processes of semiconductors require sophisticated equipment demanding huge investments. The proposed incentives worth Rs 760 billion, over the next six years and the provision for 25 percent incentives on capital expenditure for establishing unit of Compound Semiconductor Wafer Fabrication (FAB), assembly, testing, and packaging facility in the country will encourage the manufacturing industry, apart from bringing investments and employment in the country and savings of foreign exchange.