Panel to examine quarterly incentives, inclusion of more auto components under PLI
An official stated that vehicle manufacturers’ proposals for further components to be added to the production-linked incentive (PLI) scheme and quarterly incentive payouts would be taken into consideration by a panel established by the government. The incentive (under Auto PLI) will be given out every year starting this year.
A committee has been constituted by the government to review the recommendations provided by OEMs (Original Equipment Manufacturers). The Ministry of Heavy Industries’ Hanif Qureshi, Additional Secretary, announced that a request to include particular Advanced Automotive Technology (AAT) components has been made. There are just 103 parts altogether.
Editor’s Note: A government panel will assess proposals from vehicle manufacturers to expand the production-linked incentive (PLI) scheme for auto components and implement quarterly incentive payouts. The Ministry of Heavy Industries has formed a committee to review OEM recommendations, including requests to include specific Advanced Automotive Technology (AAT) components, which currently stand at 103 parts. As the PLI schemes are encouraging for companies, this addition could definitely benefit more and more companies from the sector.
Govt to launch Bharat Semiconductor Research Centre shortly: Rajeev Chandrasekhar
Rajeev Chandrasekhar, Union Minister of State for Skill Development and Entrepreneurship, Electronics and Information Technology, and Jal Shakti, stated that a “Bharat Semiconductor Research Centre” announcement is anticipated shortly.
The center will be established initially as an institution co-located with Semiconductor Complex Ltd., with the potential to eventually be spun off into a stand-alone semiconductor research organization. According to the Minister, it will work and compete with IMEC, MIT Microelectronics in the US, ITRI (Industrial Technology Research Institute), Taiwan, and other organizations to position itself as one of the main hubs for semiconductor research in the upcoming ten years.
Editor’s Note: Union Minister Rajeev Chandrasekhar has announced the imminent launch of the “Bharat Semiconductor Research Centre,” aimed at bolstering semiconductor research in India. Initially co-located with Semiconductor Complex Ltd., the center aims to eventually become a standalone organization competing on a global scale with institutions like IMEC and MIT Microelectronics. The model is similar to ITRI of Taiwan.
Government allocates Apple, Samsung, and other smartphone manufacturers more than Rs 4,400 crore under PLI scheme
Under the government’s production-linked incentive (PLI) system for smartphones, Foxconn, Tata-owned Wistron, and Pegatron—three of Apple Inc.’s contract manufacturers in India—will receive more than Rs 4,400 crore in incentives for fulfilling the targets in FY23. Along with these companies, Dixon Technologies, a homegrown company, and Samsung, a corporation based in South Korea, would also receive a portion of the Rs 4,400 crore in incentives.
The original intended spend of Rs 6,504 crore for FY24 would not be completely utilized because some of the 10 companies selected have not completed the targets, according to a report in The Economic Times.
According to the report, the government has released about Rs 2,500 crore under the PLI plan thus far. Samsung was given Rs 500 crore, and Foxconn, Wistron, Pegatron, and Dixon were given between Rs 1,700 and Rs 2,000 crore. Samsung now claims to have met the third-year targets, despite having missed the second year target.
New startup policy launched in Kashmir
To encourage entrepreneurship in the region, Jammu and Kashmir Lieutenant Governor Manoj Sinha introduced a new startup policy. The ‘New Jammu & Kashmir Start-up Policy-2024-27’ aims to create 2,000 new companies by 2027. Numerous incentives are offered by this policy, such as monetary support for mentorship, assistance with patents, ease of DPIIT registration, and other initiatives.
The new policy provides women and students with access to entrepreneurship facilities and provides government, private, and high net worth people (HNIs) with startup support.
The Lieutenant Governor described this move as a “giant leap for startups and innovators” and noted that the policy was meticulously crafted with the goal of establishing 2,000 startups in the Union Territory by 2027. This underscores the administration’s dedication to promoting a vibrant entrepreneurial ecosystem.
https://www.varindia.com/news/kashmir-launches-a-new-startup-policy
Government letter asking for approval to use LLMs to hurt startups and small businesses
Companies in the sector are concerned about the Indian government’s rule, which mandates that all large language models (LLMs) and artificial intelligence (AI) must acquire specific approval before being put on the Indian internet. Startups claim that these rules could stifle creativity and benefit large companies.
Furthermore, some experts caution that overly stringent regulations would cause AI development to relocate abroad. However, other voices are calling for government regulations to be followed and prudent AI development. The main topic of discussion is striking a balance between regulation and creating an atmosphere that is supportive of development and research.
Editor’s Note: Concerns are rising among startups and small businesses over an Indian government rule requiring specific approval for large language models (LLMs) and AI on the Indian internet. While some fear stifled creativity and favoritism towards large companies, others stress the importance of balanced regulations to support AI development without driving it offshore.
Cabinet approves an additional three semiconductor units
The creation of three semiconductor units under the initiative “Development of Semiconductors and Display Manufacturing Ecosystems in India” was approved by the Union Cabinet. Within the next 100 days, the building of all three units will begin.
With a total expenditure of Rs. 76,000 crore, the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was announced on December 21, 2021.
The Union Cabinet gave its approval to Micron’s request in June 2023 to establish a semiconductor plant in Sanand, Gujarat.
Moreover, Tata Electronics Private Limited (“TEPL”) and Powerchip Semiconductor Manufacturing Corp. (PSMC), Taiwan, would collaborate to establish a semiconductor factory. Gujarat’s Dholera will be the site of this fabrication. This fab will cost Rs. 91,000 crore to build.
Morigaon, Assam will host a semiconductor plant operated by Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”). The establishment of this facility will cost Rs. 27,000 crore.
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2010132
Editor’s Note: The Union Cabinet has approved the establishment of three semiconductor units as part of the “Development of Semiconductors and Display Manufacturing Ecosystems in India” initiative, with construction set to commence within the next 100 days. These units, with a combined expenditure of Rs. 76,000 crore, will include facilities by Micron in Gujarat, Tata Electronics Private Limited in collaboration with Powerchip Semiconductor Manufacturing Corp. in Gujarat, and Tata Semiconductor Assembly and Test Pvt Ltd in Assam.
WTO’s electronic transmission ban: Expanding the local to global startup ecosystem
India is currently the third largest start-up ecosystem in the world. With a startling 112,718 startups officially recognized by the Department for Promotion of Industry and Internal Trade as of October 2023, the nation is making a strong move to take the lead in the global startup scene.
The government-created climate that is favorable to startups is one of the main drivers of their development in India. The Indian government has done a great job over the years of fostering an environment that allows entrepreneurs to flourish.
Editor’s Note: This is an article to understand the Indian Starup sectors under the latest WTO electronic transmission moratorium. As electronic transmissions are crucial for many online businesses, the continuation of the moratorium ensures that startups can operate without facing additional taxes or barriers to cross-border data flows. However, there are concerns that the moratorium’s expiration could lead to increased costs and regulatory burdens for startups, potentially hindering their growth and competitiveness in the global market.