To ensure effective monitoring, MeitY is seeking an agency to look after the Semicon India Program’s implementation, fiscal support, and progress.
The Ministry of Electronics and Information Technology (MeitY) has issued a Request for Proposal recently to appoint a firm to monitor the implementation, recommend fiscal support, and track the progress of the Semicon India Program.
According to the proposal, the chosen project management consultancy will finalise the fiscal support agreement terms and establish the framework for monitoring key parameters, technological and financial arrangements, and payment releases.
The firm will also evaluate technological setups, oversee technology transfer and quality control, and perform financial assessments, including project estimates and verification of fiscal support claims.
Furthermore, as the ministry stated, it will be responsible for analysing and reporting on fabrication facility setup, including plant layout, design, vendor onboarding, construction, and cleanroom readiness, as well as scrutinising key milestones like production target achievement and reviewing off-take agreements.
Launched in December 2021, the India Semiconductor Mission introduced a ₹76,000-crore incentive scheme for semiconductor fabs, display fabs, and facilities for compound semiconductors, silicon photonics, sensors, and OSAT in India. IT offered a 50 per cent subsidy on capital expenditure for plant setup.
In March 2024, three significant projects were approved under this mission: CG Power’s ₹76 billion chip packaging facility in Sanand, Gujarat, in partnership with Japan’s Renesas Electronics; Tata Group’s ₹270 billion chip assembly plant in Morigaon, Assam; and Tata Electronics’ ₹910 billion plant in Dholera, Gujarat, in collaboration with Taiwan’s Powerchip.
Additionally, US-based Micron Technology is building a ₹2.75 billion packaging plant in Gujarat, and the Union government is providing a major incentive.
