New Delhi [India], July 15 (ANI): Prime Minister Narendra Modi on Wednesday welcomed the Union Cabinet’s approval of the Semicon 2.0 program, which has an outlay of Rs. 1.275 lakh crore and is aimed at making India a global hub for semiconductor design, manufacturing, and innovation.
In a post on X, Modi said, “India’s semiconductor journey gets even more vibrant.”
“The Cabinet has approved Semicon 2.0 with an outlay of Rs. 1,27,500 crore, reaffirming our long-term commitment to making India a global center for semiconductor design, manufacturing, and innovation. Powered by our youth, Semicon 2.0 will strengthen every aspect of the semiconductor ecosystem. Semicon 2.0 will attract greater investment, create high-value opportunities for our youth, strengthen supply chains, and advance technological self-reliance in critical sectors,” he said.
According to the government, Semicon 2.0 is built on six pillars: chip design, semiconductor manufacturing, fabrication plants (fabs), research, strengthening the Assembly, Testing, Marking, and Packaging (ATMP)/Outsourced Semiconductor Assembly and Test (OSAT) industry, and talent development.
The program aims to develop intellectual property, semiconductor chip designs, and integrated systems. It will also provide incentives for companies engaged in semiconductor manufacturing, research and development, and the production of machinery, materials, chemicals, and gases essential to the semiconductor industry.
The initiative is also intended to attract additional manufacturers to establish semiconductor fabrication facilities in India.
The prime minister also welcomed the Cabinet’s approval of two railway multitracking projects—the doubling of the Paradip-Haridaspur rail line and the construction of a fourth line between Rajkharsawan and Dangoaposi—calling them a major boost to connectivity and economic growth in Odisha and Jharkhand.
“A major boost to connectivity and economic growth in Odisha and Jharkhand! The Cabinet has approved two important railway multitracking projects, the doubling of the Paradip-Haridaspur line and the fourth line between Rajkharsawan and Dangoaposi. These projects will further growth in Odisha and Jharkhand. They will expand the railway network, ease congestion, and boost tourism,” Modi wrote on X.
The government also approved the construction of a six/four-lane elevated corridor along the Varuna River and a six-lane corridor along the Ganges in Varanasi, Uttar Pradesh.
Commenting on the projects, Modi said, “We are resolute in making darshan of Baba Vishwanath in Varanasi even more accessible and convenient through expanded connectivity in Uttar Pradesh. In this direction, today our government has approved the construction of a six/four-lane elevated corridor along the banks of the Varuna River. This project will not only serve as a model for cities of cultural importance but will also improve the lives of people through better infrastructure.”
“We are committed to developing world-class infrastructure in Kashi. In line with this, today we have approved the construction of a state-of-the-art six-lane corridor along the banks of the Ganges. This will further improve access to the city’s major religious, educational, and cultural sites. At the same time, reduced pressure on the road network will make commuting even smoother. This project will accelerate economic development in eastern Uttar Pradesh,” he added.
The prime minister also praised the Cabinet’s approval of the National Urea Investment Policy-2026, which is designed to encourage investment and strengthen India’s self-reliance in urea production.
“Our government is leaving no stone unturned for the welfare of farmers across the country. In this direction, today the proposal for the National Urea Investment Policy-2026 has been approved. This will not only encourage investment in new gas-based urea production plants but will also strengthen our resolve for self-reliance in urea production,” Modi wrote in a separate post.
According to the Ministry of Chemicals and Fertilizers, key changes under the new policy compared with the National Investment Policy-2012 include separating fixed and variable costs for greater transparency, introducing a return-on-equity band with a minimum of 12% and a maximum of 16%, and mitigating foreign exchange risk by converting fixed costs into Indian rupees after four years based on prevailing exchange rates.
The ministry said these measures are expected to generate savings of more than Rs. 250 crore for each plant established under the National Urea Investment Policy-2026 compared with projects developed under the 2012 policy. (ANI)
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